Debt can be overwhelming, especially when we’ve taken on too much of it. It looms over our heads, overshadowing everything else at times. Getting into debt has become easier than it once was, and one of the results is more people who have trouble making ends meet.

It may seem impossible to get out of debt. But if the problem is recognized early on, it can be fairly simple to do so. If you have financial problems, here are five ways you can eliminate your debt and get your finances back where they should be.

1. Pay more than the minimum payments. Ideally, we should pay off our credit card balances every month, but sometimes we don’t or can’t. Paying more than just the minimum payment will allow us to pay off our debts much faster. It also has the potential to save us a lot of money, because the quicker we pay credit cards off, the less interest accrues.

This also holds true for mortgages, car loans, and any other type of loan. Some loans have prepayment penalties, but it’s best to avoid them anyway. For any loan that doesn’t, paying it off early is a good thing.

2. Cut back on your expenses, and put the extra money toward paying down your debt. If you examine your budget closely enough, you will likely find many areas where you could save money. Just taking your lunch to work instead of eating out can save you a substantial amount.

3. Sell things you don’t need. Do you have an extra vehicle, or anything else of value that you don’t use or need? Even just gathering up some things and having a yard sale could help you raise money to put toward your monthly payments. Every little bit helps.

4. Find ways to make extra money. You could take on a second job, do some babysitting, or sign up with a direct sales company. If you put all of your extra money toward paying off your debts, you shouldn’t need to do this for very long.

5. Consolidate your debts, but do so wisely. The best way to do this is to transfer all of your balances to a low-interest credit card. That will usually result in lower minimums, but keep on paying as much as you can to get the debt paid off. Avoid using home equity loans or other secured loans to consolidate if possible, because that will put your property at risk unnecessarily.

Getting out of debt may be easier than you think. Often a few minor adjustments are all that’s needed to eradicate a debt problem, especially if it is attended to early on. Then you can learn from your mistakes and keep your debt manageable.

Why are so many people in too much debt?

Sometimes people end up in too much debt through no fault of their own. They may incur debt sensibly, but lose their jobs or become ill and unable to work. Unless they can find some way to bring their income back to the level that it was at, they could find themselves saddled with debt that they can no longer afford.

Another reason that people end up over their heads in debt is poor financial management. Credit card companies are often willing to extend credit that the borrower may not make enough money to pay back. And an increasing number of people keep multiple credit cards, which essentially multiplies their debt. Although they may be able to keep up with the minimum payments, interest keeps them in debt for many years.

How to keep your debt manageable

The best way to keep control over your debt is to not let it get out of hand in the first place. Shop around for the best possible interest rates, and keep your open accounts to a minimum. No one needs a pocketful of credit cards. One or two should be plenty.

When paying back your debt, making more than the minimum payment will prevent interest from accruing. The best thing to do is pay the balance in full each month. This will keep your credit in good shape and save you lots of money. If something comes up and you need to charge more than you can pay back in a month, stop charging until the balance is paid off.

How to get out of debt

If you’re already in more debt than you can handle, all is not lost. It takes discipline, but you can get yourself out of debt on your own in most cases. The key is realizing that there is a problem before it is too late.

When you realize your debt is out of control, the first thing to do is stop taking on new debt. Then it’s time to work out a budget, and start putting all of the money you can into paying off your debts. You’ll need to at least make the minimum payment on everything each month, but what works best for most people is putting all of their extra money toward one debt until it’s paid off, and then moving on to the next. Paying debts off in the order of highest to lowest interest is the least expensive course of action.

If you’ve tried to manage your debts on your own but are having trouble coming up with any extra money to put toward them, or even enough to make the minimum payment, you may need some assistance. Talk to your creditors. They may be willing to reduce your interest and payments if you tell them about your situation. If that doesn’t work, credit counseling and debt consolidation are options. Bankruptcy is also an option, but it should be the last resort. It is often possible to get things under control without filing bankruptcy.

Getting into too much debt can be a scary thing. But it is often possible to regain control on your own. If not, help is available. Don’t be afraid to seek it out.

The truth is that it is quite possible to get out of debt with no outside help. Even those who don’t think there is room in their budget to pay down their debts are often surprised. It takes willpower and determination, but you can usually get out of debt on your own.

How do I get out of debt on my own?

Are you too far in debt? If so, in order to get out of debt on your own you will need to develop a plan and stick to it. Here is a good plan to follow:

1. Stop accruing new debt. Put the credit cards away, and refrain from taking out new loans or refinancing old ones to borrow more money.

2. Create a budget. You need to know where your money is going each month, and in which areas you can cut back to free up more money to pay off your debts. If you’re not sure where your money is going, write down all of your expenses for a month and then make your budget.

3. Cut the unnecessary items out of your budget, and cut back anywhere else you can. Set this money aside to pay down your debts.

4. Determine which debt needs to be paid off first. If you have secured debts other than a long-term mortgage, you may want to pay them off first. Debts with high interest should also take priority, unless you have lower interest credit cards that charge exorbitant annual or monthly fees.

5. Pay the minimum payment each month on all of your debts except the one that you have given top priority. Put all of your extra funds toward that debt, and continue to do so until it is paid off. If you get a bonus at work or unexpected money from some other source, consider putting it toward your debt as well.

6. When you get one debt paid off, start putting your extra money toward the next one. Repeat until all of your debts are paid in full.

Paying off debt on your own is often easier than you think. By taking a realistic look at our finances, we can often find ways to come up with the money to pay debts off without the help of anyone else. Doing so helps us maintain good credit, or rebuild our credit if it is imperfect.