Got debt?

Don't panic, you are not the first to go through this. For many Americans, living with debt has always been a part of their lives. Having a balance on their credit cards was standard and part of the game. Now more than ever, I am encouraging everyone to take control of their financial situation and begin the process to ease the stress that debt has caused and seek professional assistance to eliminate that burden of debt.
 
There are many steps to take in order to emerge from your mountain of debt, but take it slow. Start with the first two tips below and once you have figured them out, you can continue to move forward in helping yourself become debt free.  
 
First Step – Take Control

Know the type of debt that you have.  There are various types of debt including secured and unsecured debt. A secured debt is a debt that if you fail to pay something can be taken by the creditor, like a house, car or boat. There are other types of debt that you may have and if you are not sure whether the debt is secured or unsecured or what type of debt it is, simply contact the creditor and ask.   
 
Once you have figured out the types of debt you have, now figure out how much you owe to each creditor. Go through all paperwork, bills and statements from the creditors you have and create a chart outlining each debt and what you currently owe so the numbers are clear and right in front of you. 

Now that you have identified what type of debts you have and have a clearer picture of how much you owe, you can now move on to the second step.    
 
Second Step – Reality Check

Get a good look at the "real picture" of your finances. Maybe up until now making minimum payments on multiple credit cards has worked for you but failing to look at the current balances due each month has only taken you further into the abyss of debt.  
 
I advise all my clients to take just 30 days and write down every single thing that you spend money on within the month – bills, groceries, coffee from Starbucks, gum, etc.  You will be surprised to find out how much you really do spend every day. If you did not spend money on things you did not need, you could be applying that money to pay off your debt.
 
Following these two steps and assessing what your own financial situation looks like will help you to better determine where you will need to go for assistance, make the search for appropriate help more clear and not as stressful.  Beginning with these two steps will help you better communicate exactly what you owe to creditors which will only benefit you and put you on the right road to resolve your debt crisis.  
 
Leslie H. Tayne, Esq. founder of The Law Offices of Leslie H. Tayne, P.C. a legal firm that specializes exclusively in assisting consumers and individuals with resolution options to avoid bankruptcy and resolve unsecured debts.