What to Do if You Have Too Much Debt

Addressing an Overwhelming Debt Issue

Every person has, at some point in their life, faced a financial crunch. Being in debt can be daunting, especially if it’s mounting to the point where it’s taking over your life. Ignoring the problem may seem like an easy way out, but it only provides temporary relief. Sooner or later, the strain of debt starts affecting your daily life, causing stress, sleepless nights, and even damaging relationships. The silver lining here is that there are ways to tackle this problem of having borrowed excessively. The key is to not let the stress of debt rule your life. Here are some strategies on What to Do if You Have Too Much Debt.

Recognizing the Red Flags

All financial situations are unique, but there are some common indicators that suggest you might be knee-deep in debt. Here are some warning signs:


  • Consistently meeting just the minimum payments on your credit cards.
  • Resorting to paying one card’s minimum with another card (card juggling).
  • Struggling to meet all your debt payments as they fall due each month.
  • Evading bills upon arrival, as your debt continues to grow.
  • Being hounded by creditors or collection agencies, with threats of legal action.
  • Having no savings to help offset some monthly expenses and debt repayment.
  • Resorting to new loans, like payday loans, to pay off existing debts.

If even one or two of these signs resonate with you, it might be an indication that you’re grappling with more debt than you can manage.

Formulating a Strategy to Minimize Debt

If you find yourself sinking in a sea of debt, it’s crucial to take charge of the situation sooner rather than later. Inaction or sticking to making only minimum payments on your debts won’t help improve your circumstances. In fact, these approaches are likely to compound the problem.

The first step is to determine exactly how much you owe. While this may sound anxiety-inducing, it’s a necessary process to help organize your financial situation.

Once you’ve got all your debts listed, prioritize them based on the size and the interest rate. Usually, unless there are payday loans, credit cards tend to be the priciest debts due to their exorbitant interest rates.

This is also the time to consciously cut down on spending while working on repaying your bills. Continuing to pile on new debt while trying to pay off existing ones defeats the purpose of resolving your issues.

Aim to live on cash by creating a simple household budget. Drastically reduce expenses to ensure any surplus can be allocated for debt repayment. Determine what you need each month to eliminate the debt and stick to this plan.

Seeking Assistance When the Going Gets Tough

Sometimes, despite your best efforts, you might find the debt problem too overwhelming to handle on your own. If, despite cutting down your spending, you’re unable to adjust your budget to manage your costs and repay your debts, it might be time to seek professional help.

Farber’s Licensed Insolvency Trustees offer free consultations and can help navigate your debt issues. They will review all your options and recommend the best solution tailored to your needs.

Remember, it’s okay to ask for help when you need it. After all, everyone deserves a life free from financial stress.

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.