If you’re struggling with too much debt, you’re not alone. It seems as if the whole nation has a borrowing hangover. For years, credit was easy, and many people became overextended. But, we now live in an era of austerity and it’s time to get our affairs in order.
The five strategies you may want to avoid:
The first piece of advice from experts in the financial field is to be sure you don't make your situation worse by making common mistakes. In particular, try to avoid:
1. Paying only the minimum payment on your debt, as this will result in the amount you owe actually growing, and your problems will only become worse.
READ MORE: 11 ways to teach kids smart money habits
2. Relying on friends and family, as this can damage relationships with the most important people in your life.
3. Unscrupulous credit counselors that demand cash upfront or high fees for help they promise, but don't deliver.
4. Using new, high-interest loans to pay off lower interest rate loans. While it may be easier to just have one payment, it will actually increase the amount you have to pay back.
5. Declaring bankruptcy--this can have permanent and severe consequences on your financial future. Avoid it if you can, especially when debt settlement may work for you.
READ MORE: Easy saving tips!
(from HowLifeWorks.com)