Finding yourself overwhelmed with debt can feel like you're drowning financially. Past due notices pile up, creditors call daily and you stress constantly about money problems. It may seem impossible to get out from under all the debt suffocating you. But there is hope - with the right strategy and commitment, you can take control of your debt and improve your financial situation.

This guide will walk you through practical steps to assess your debts, increase income, negotiate with creditors, and emerge from debt. With a plan and determination, you can get your head above water again. It won't be quick or easy, but you can do this.

Things to Do When You’re Drowning in Debt

1- Evaluate Your Debts

Make a list of all your debts and your minimum monthly payments. This includes credit cards, personal loans, medical bills, student loans, back taxes owed, etc. Having it all written out can help you visualize the full scope.

Next, determine interest rates and if any accounts are accruing fees. Credit card debt tends to have high interest rates, so focus on paying that down aggressively. Accounts in collections or default may have penalties too. Understanding the true cost of your debt helps prioritize what to pay off first.

2- Budget to Pay More than Minimums

To get out of debt, you need to pay more than the minimums. To find room in your budget, reassess necessities vs. luxuries. Cut any expenses not vital like cable packages, gym memberships, etc.

Meal prep at home instead of takeout or going out. Limit discretionary shopping and look for ways to slash grocery costs. Consider downsizing your home or getting a roommate if housing is too expensive.

Every extra dollar you can put towards debt helps. Automate payments for an amount above the minimum to help chip away at balances.

3- Increase Your Income

Bringing in more money speeds up debt repayment. Can you ask for a raise or find a higher paying job? Even side gigs like dog walking, rideshare driving, or tutoring can generate extra cash. Sell any unused items around the house to fund your debt payoff.

Also evaluate government and nonprofit programs that assist with bills, food, medical care, housing, and more. Reducing other expenses frees up money to put towards debt.

4- Consult With Debt Settlement Companies

Consulting with an experienced debt settlement company can be a great option for negotiating lump sum payoffs that are less than you owe. Reputable settlement firms work on your behalf to secure favorable deals with creditors.

A debt settlement company will thoroughly review your accounts and financial situation. They have trained negotiators that leverage proven strategies to try to settle debts for an agreed percentage of the balance.

The debt settlement process typically takes 2-4 years to complete as funds are set aside until there is enough to make settlement offers. Debt settlement can provide debt relief without the severe credit damage of bankruptcy.

Make sure to vet any settlement company and get all program details in writing. Use a reputable, transparent company with a solid track record. Debt settlement can be an effective path for resolving what you owe at a fraction of the balance.

Don't Give Up – You Can Do This

The road to becoming debt-free may be long, but take it one step at a time. When you feel frustrated, remember your goals and how good it will feel to have the burden lifted. With focus and commitment, you can work your way out of debt and regain financial freedom.