5 Things You Can Do when You're Drowning in Debt

If too many credit card bills and giant loan payments are making you feel stressed about your finances, it's time to take big steps to reduce your debt load. Feeling like you're drowning in debt can take its toll on your mental and physical health, and can even lead to self-esteem. Nobody wants to feel like they're behind financially, and those looming credit card bills and loan payment schedules could make you think financial stability is a hopeless cause. Fortunately, there are some ways to get yourself out of debt quickly - even when you think you're drowning.

Here are just five things you can do when you're drowning in debt:

1. Make a list. Get a realistic perspective on how much debt you're actually carrying by making a big list of all outstanding balances. Make sure to include all credit card balances, loans and money you have borrowed from friends and family. Making this comprehensive list can give you a view of the "bigger picture" and help you get started on creating a debt repayment plan.

2. Stop using your credit cards. Don't keep fueling your debt problem by adding more debt with credit cards. Leave your credit cards at home whenever possible and commit to spending only money that you have. Making a firm commitment to stop buying on credit is one of the first steps towards freedom from debt. Start now!

3. Consider a debt consolidation plan. Debt consolidation involves taking out a loan to "eliminate" all current credit card debts and personal loans, and then making a single monthly payment to the new loan. Debt consolidation companies are usually non-profit organizations that are committed to help you getting out of debt. Just be careful about scams and make sure you do a thorough investigation to determine the credibility of the company. Debt consolidation can help some people who are drowning in debt or dealing with financial hardship.

4. Consider debt settlement programs. Another way to reduce your debt when you feel like you're drowning is to enroll in a debt settlement program. Debt settlement companies work for you by negotiating with creditors to see if they can lower interest rates and reduce the total amount of debt owed. These companies do charge a fee for services, but could help you reduce - not eliminate - your debt load when you're feeling overwhelmed by the balances.

5. Get help from a Certified Financial Planner. Independent financial advisors and CFPs can help you develop a debt repayment plan that actually works. If managing money isn't your strong point, consider working with a financial advisor to help you get out of debt as quickly as possible.

There are no "quick fixes" for getting out of debt. Even bankruptcy has some negative repercussions and can make it hard for you to stabilize your finances in the future. If you're drowning in debt, use these above five strategies to get control over your finances and start paying off debt as quickly as possible.