If you are in debt, you are not alone. Millions of people struggle with debt of many kinds – credit card, auto, home or mortgage, business, educational and college loans, and many others. It may seem like the deck is stacked against you to ever recover unscathed from your debt. Luckily, there are solutions out there that can help you achieve the debt resolutions you need to return to a healthy financial position. Here are sixteen ways to achieve debt resolution legally and effectively – there is no talk of scams or frauds allowed here!

1. First, you need to stop the bleeding by cutting the use of any further credit lines. If you take on more debt, you’re making the problem worse.
2. Cut off any money that you may be hemorrhaging in other places. For instance, if you are smoking, or wasting money on booze or junk food or eating out, or any expenditure that isn’t strictly necessary, stop it immediately! Your goal right now is to preserve capital. Think of how long you’d have to work to earn the money that you could save simply by changing your habits.
3. You need to be in a long-term mindset. Get out of the instant gratification, quick fix mentality, and think of your financial health and happiness in terms of years, not weeks or months. This will give you the patience to forge ahead not only with your debt plan, but also with your money habits.
4. Get a free credit report in order to assess your current financial health.
5. Figure out your current major debts. Line up how much is owed on each account, the interest rate, and the number of payments remaining. If you need credit card debt resolution, make sure to have all your information organized by card and interest rate so that you know where to begin.
6. If you haven’t already, create a budget based on your income and expenses.
7. Look for places to increase the income side of the equation. For instance, a second job might help. You could also sell some of your old goods and gadgets online or at a yard sale. Consider also starting an online business. There are also tons of freelance and other business opportunities available on the internet if you have the right talents, including writing, web design, editing, and more. You could also give online poker a chance (if you are good). Internet marketing could also be your game. No matter what you do, if you increase your income, you’ll be able to resolve your debt more quickl.y
8. Cut down on the expenses side of the equation as well. Cut back wherever you can to conserve your capital supply. Be ruthless – the suffering you may feel now without your latte or TV or cell phone will be worth it a year down the line when all your debt has been wiped away. So don’t be afraid to sacrifice short-term comfort for long-term gain.
9. Be careful with so-called debt resolution companies. Many of them are a horrible scam, out there only to prey on the weak and the helpless and those who are desperate to get out of debt. Always do your research to find out the latest news on debt resolution scams before you sign on to any of their company agreements. Best case scenario is that these frauds do nothing for you and only take money. The worst case scenario is that they take your money AND make your situation worse. Always read reviews and consult with professionals before giving any of these debt resolution firms your money. Commonly searched debt resolution companies include National Debt Resolution, Debt Resolution Partners, and Community Debt Resolution.
10. Consider getting a cheaper loan from other sources. A balance transfer from one credit card to an interest-free card may save you a ton of money and stress. A home equity loan could help you wipe out credit card debt and other high interest debts. You could also borrow money from friends and family, as long as trust and documentation is present, to wipe out debts immediately.
11. Pay down your highest interest rate debt first. This will save you the most money in the long-term. Plus, the money you save in interest by paying these down can be put towards paying down more debt, further increasing the so-called ‘snowball effect.’
12. Or you could pay down your smallest debt first to get the psychological ball rolling in your head. You may feel less discouraged if you wipe out debts quickly instead of being stuck with huge debts that take awhile to annihilate.
13. Pay down any debts that are past due or are late. You don’t want to hurt your credit score more than you already might be.
14. If you are in serious financial trouble, you may have a bargaining position with companies where you can ask them to forgive some of your debt or at least lower your rates. Credit card companies and other creditors don’t want to see you go bankrupt, as they may lose a lot of money if that occurs. Thus, your weakness may actually be a strength in the bargaining process. Call them and see if they’ll work with you.
15. Get the services of a professional. This advice may help, but your circumstances will vary, and one size surely does not fit all. Debt counselors and debt management groups can help you figure out a plan tailored to your life situation. There are many nonprofit groups that you could go to for help first before going to the for-profit companies. So make sure you use all the resources at your disposal before taking drastic action. The money you pay for their help may be worth the amount of money and pain you’ll save in the long-run.
16. Bankruptcy is a big NO in all but the most serious situations. Exhaust literally every other possible option before even thinking about this! The long-term effects will be serious, so don’t go into it lightly.

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