The economic crunch can be seen everywhere as the unemployment rate have been at an all time high.
More and more people are trying to get back some financial stability in their life by getting rid of their loans.
However, getting out of debt is a major problem if your income is just enough to meet your monthly expenses.
1.
If you are serious about getting out of debt then you will have to live a budget life.
Try to write down all your monthly expenses and check where you can curtail.
Entertainment, transportation and miscellaneous expenses are where you can cut down some of your expenses and save.
Write down all your expenses in a day and avoid purchasing anything which might not be really necessary.
2.
Use the money in your savings account and investments to pay off your credit card debts.
The interest earned in these accounts is much less than what you are paying to the card companies.
3.
Try to negotiate a reduction in interest rate with your creditors.
This will result in bringing down your monthly payments.
Some of the creditors are willing to waive off the penalty charges like late fee or ATM charges on the account.
You can negotiate on those levels as well.
4.
If you have a lot of credit card debt then you can try consolidating all your loans into one offering a lower interest rate.
It is possible to find consolidators who can give you a discount on the amount of your loan.
5.
Try to get a settlement your debt with your creditors.
You can use your savings to negotiate a settlement amount.
It is possible to use this option if you have ten thousand dollars or more in unsecured debt.
A good negotiation can get a debt reduction by as much as 50 %.