4 Steps to Help Manage Your Debt Without Losing Your Mind

If keeping up with payments is becoming a struggle, don’t wait until it feels impossible. Reach out to your bank or creditors

By CRACKYL staff

Debt: It doesn’t just burn through your wallet. Financial stress can spread, just like a fire, into every corner of your life, messing with your sleep, raising your blood pressure, and even affecting your mental health. But it doesn’t have to be that way. Small steps can make a big difference when it comes to tackling debt – and making you feel better. Here are steps to try:

Step 1: Know What You’re Dealing With

The first step to paying off debt is figuring out exactly what you owe. Make a list of all your debts, from credit cards to loans, and jot down the interest rates for each. Once you’ve got the full picture, it’s time to set some goals.

Focus on high-interest debts first. Those are the ones costing you the most in the long run. If you’re juggling multiple high-interest debts, think about consolidating them into one loan with a lower interest rate. Not only will it save you money on interest, but it’ll simplify things – one payment instead of many.

Step 2: Review Your Budget (or Make One!)

If you’ve never made a budget, now’s the time. It’s not as daunting as it sounds. A budget simply lays out what’s coming in (your income) and what’s going out (your expenses). If you already have one, take a closer look to see where you can trim the fat.

Could you cut back on dining out? Cancel a subscription you rarely use? Every dollar you save can go toward paying down your debt. 

Step 3: Don’t Be Afraid to Ask for Help

If keeping up with payments is becoming a struggle, don’t wait until it feels impossible. Be proactive and reach out to your bank or creditors. They might have options to help ease the pressure.

For example, some banks can lower your interest rate, extend your loan term, or reduce your minimum monthly payment if you’re going through tough times. These programs exist because lenders want to work with you, not against you, so don’t be afraid to ask.

You can also turn to a financial advisor or credit counselor for guidance. Just make sure the agency you choose has a solid reputation.

Step 4: Take It One Step at a Time

Managing debt and paying it off takes time. Celebrate small wins along the way, whether that’s paying off a single credit card or sticking to your budget for a month. Every little bit gets you closer to financial freedom. You got this.

CRACKYL Magazine recommends you seek professional financial advice before you make any financial decisions.