Watching debt pile up can be very stressful and can often cause you to feel hopeless or inadequate. You shouldn’t let those feelings overcome you, though, because you can fight back and reduce your debts with just a little time and dedication. If you’ve been struggling with overwhelming financial issues, keep reading to learn how you can reduce your debts.

The Root Cause of Needing to Reduce Your Debts

Unfortunately, a lot of debt issues can be boiled down to a lack of financial responsibility and discipline. While this is tough to admit, it’s also a good thing because it is something within your control that can be easy to fix. It’s very simple to create a budget and track your income and expenses each month, setting aside money for specific purposes and eliminating any unnecessary expenses that are weighing you down. The hard part is sticking to this budget. It is this lack of discipline that causes you to need to reduce your debts in the first place.

Budgeting as a Way to Reduce Your Debts

A good budget will account for unexpected costs—such as a new set of tires or an emergency doctor’s visit. With that said, this can be difficult for people who spend most of their monthly income on necessary household expenses. Even then, it’s still not impossible.

To start, you should determine exactly how much you make each month. To account for a healthy emergency fund, you should set aside at least 5% of your monthly income for those sudden, unforeseen expenses. Next, calculate your necessary expenses—such as rent, utility bills, property taxes, debt payments, et cetera. If an expense varies depending on the month, you can calculate a six-month running average to use as an estimate of what you should expect to pay. Subtract the total amount of your necessary expenses from the remaining 95% of your income, and the leftover amount will be dedicated to other necessities like groceries or personal care items.

These extra expenses, while still necessary, can often be cut a lot. For example, you could look at your average grocery bill and see how much of that food went to waste. Could you cut back on the food you buy or purchase less expensive items? A great way to cut back on grocery costs is to switch to generic brands rather than name-brand items.

Increasing Your Income to Reduce Your Debts

If you’ve set up a strict budget and still seem to be unable to pay off your debts, you should take a look at your income. You need to be able to afford to make payments that are higher than your minimum monthly requirements, so this might require that you find ways to add to your income sources. With that said, you don’t need to be expecting a promotion or raise to increase your income. There are plenty of other ways you can address this issue.

Instead of expecting or asking for a promotion, simply offer to work more if you get paid by the hour. If you’re on salary and haven’t had a pay increase in awhile, you might consider speaking with your boss or payroll manager. If you tell them that you’re in a tough financial situation and need extra money, they may be able to help you out. The fact of the matter is that you’ll never know what they might say unless you ask.

If your employer is unable to give you more hours or a pay increase, there are still other ways you can increase your income. For example, you could get a part-time job on the side. There are many jobs that offer, for example, $10 per hour for 15 hours each week, and that extra money could be exactly what you need to get back on track with paying off your debts.

Reduce Your Debts with a Debt Settlement Program

Regardless of how a budget works out for you, enrolling in a debt settlement program could make getting out of debt ten times easier. The great part about these programs is that they are risk-free with no upfront costs and can help you reduce your debts in two to four years. On top of that, debt settlement is the only debt relief option that can actually help you pay off your debts for a fraction of what you originally owed. While every situation is different, debt settlement is likely a highly beneficial option to consider when trying to reduce your debts.

If you would like to learn more about how you can reduce your debts with the help of a debt settlement program, Strategic Debt Relief can offer expert advice regarding your situation. Fill out our short application online and get an immediate response, or call us at 877-297-4477 for a free consultation today.