The Smart Way to Deal with Debt: A Guide for Everyday People

Too many people are struggling with debt. And while some manage to get out from under it, others may not be so lucky. If you’re in the category of the latter and need help, then this post is for you! We’ll go over the basics of debt and how to finally get your life back on track.

What is debt and how does it get out of control:

Most people don’t knowingly take on too much debt. It tends to happen gradually, over time. You may not even realize it until it’s too late. The average person usually gets into debt by borrowing money for things like education, vacation, or home repairs. These are all valid expenses, but they can quickly add up and become unmanageable. And if you’re not careful, you could easily find yourself in over your head.

Debts can go out of control in several ways. For starters, if you’re not careful about how much you borrow, you can quickly find yourself in over your head. This is especially true if you’re only making minimum payments on your credit cards. And if you miss a payment or two, your interest rates will go up, which will only make things worse.

Another way debts can spiral out of control is by accruing interest. Let’s say you have a $10,000 debt that’s charging 10% interest. That means you’ll be paying $1,000 in interest every year. And if you don’t do anything to pay it down, that number will only continue to increase over time.

The different types of debt and how to deal with them:

There are several different types of debt, but the most common are credit card debt, student loan debt, and mortgage debt.

Credit card debt is probably the most insidious type of debt. It can be very tempting to use your credit card for things you can’t afford, especially if you don’t have to pay off the balance right away. But if you don’t pay off your balance in full every month, you’ll end up paying a lot of interest.

Student loan debt is also a big problem for many people. The average student loan debt is now over $37,000, and it’s only getting worse. But there are several things you can do to handle student loan debt, such as refinancing or income-based repayment plans.

Mortgage debt is the only type of debt that’s considered “good” by most people because after all, a home is an investment. And buying a house with a mortgage is indeed better than paying rent. But there’s a right way and a wrong way to take out a mortgage. And the wrong way could end up costing you big time in interest payments.

The consequences of not dealing with debt:

The consequences of not dealing with debt can be dire. For starters, you could end up losing your home or your car. You could also go into default on your student loans, which could ruin your credit rating. And if you have a lot of credit card debt, you could find yourself in bankruptcy.

These are just a few of the consequences of not dealing with debt. There are many others, including garnished wages, lawsuits, and even prison time. So if you’re struggling with debt, it’s important to take action right away. There are plenty of ways to get your debt under control, and we’ll go over them in detail in the next section.

How to get started on paying off your debt:

There are several ways to get started on paying off your debt. The first and most important thing is to make a plan. If you don’t have a plan, you’re not going to get very far.

The next step is to gather all of your debt information. This includes the amount of each debt, the interest rate, and the minimum payment. You’ll also need your credit score, so you can determine which debts to pay off first.

Once you have all this information, it’s time to start paying off your debts. The best way to do this is by attacking the highest interest rate debts first. This will save you the most money in the long run.

You can also pay off debts by using the snowball method. This involves paying the minimum on all your debts except for one. Pay as much extra money towards that debt until it’s paid off, and then roll the amount you were paying on that debt into the next highest one. Do this over and over again until all of your debts are paid in full.


Debt can be a real problem, but it doesn’t have to be. Just make a plan and follow-through, and you’ll find yourself on the path of living a debt-free life in no time.

Amit Kumar

Amit Kumar is a Digital Marketing Strategist in a leading organisation. A creative marketing strategist with over 8 years of experience developing digital marketing strategies and guiding business development