Hi, my name is Maria Enomoto, from Consumer Credit Counseling Service, and today, we're going to discuss how to get out of debt. First thing, if you're feeling overwhelmed, with the debt that you are carrying, and you want to get out of debt. The first thing that you need to do is to stop using credit, in any form, credit card, line of credit, or any personal loan that you have applied. The first thing is to cut it. Stop using credit cards, or any form of credit, and another thing that you need to do, is to work on a spending plan, or budget. It usually works better if you do it every month. You will need to check what incomes do you have, and how much are you spending on your living expenses. You need to make sure that you are going to include in these expenses, the amount that you are going to be paying to your creditors, to pay off the debt that you already have. It's also a good idea to make a list of the debt that you have, and what type of debt, and what interest rate are you paying, to each kind of debt, because you want to make sure that you are paying everybody, if possible, and at least, the minimum payment. Of course, what's going to take you out of debt, is to be more than the minimum that they request, so that way, you're going to be paying them faster,and not only the final charge that you pay, when you only send the minimum payment, to the credit cards, so the best way to get out of that debt, that's overwhelming you, is to stop using credit. Work on your spending plan, and have an action plan, on how to address each of the creditors. If your spending plan doesn't allow you to pay them, according to what they are requesting or more, contact your creditors. Contact them and request any kind of plan, or hardship program. Several credit card companies have this kind of programs, where they can help you pay it off, your debts, by lowering the interest rate, or giving you some more options that will work with your budget. If you still cannot make it work, or it feels that it's too much of a hard work to work on a spending plan or budget, or create a plan to get out of debt, contact an agency, a credit counseling agency, and the counselor will be able to help you with your budgeting, your expenses, and create this list of debts, that can take you out of that overwhelming debt.
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