1. Keep a record of your finances. Figure out your source of income and expenses. Determine how much should be allotted to debt payment. You may forego some unnecessary expenses to allot a greater amount for debt payment.
2. Find a way to earn additional income. You can’t just trust your paycheck to settle all your debts. Maybe you can do tasks for your neighbors like babysitting, tutorials, or lawn mowing. You might also want to dispose of your old stuff through a garage sale. Best of all, you can place some funds in a short time investment like forex trading.
3. Negotiate with your creditor to re-structure your debts. A lower interest rate on the unpaid principal would lift a huge burden off your shoulders. Most lenders allow negotiations because collecting lesser amounts from their borrowers is of higher importance than not collecting anything at all.
4. Learn to be disciplined with your finances. This is perhaps the most sustainable way to get out of an insurmountable debt. Spend only what your earnings are able to cover. Do not borrow while you still have unpaid debts. If you can’t resist using your credit card, use only one card as opposed to multiple credit cards.
Borrowing should be resorted only when necessary. In fact, it should be the last resort for fund raising. The primary source of funding family needs should be your earnings and not borrowings.