Debt continues to be a touchy subject for many people.

For many, debt isn’t just about money. Not being able to pay one’s debts often feels more like a personal embarrassment than a financial problem. While debts should, of course, be repaid, we’re here to tell you that failing to pay your debts is not the end of the world.

You’re not a bad person and debt doesn’t have to define your life—as long as you work on tackling it.

This New Year is the perfect opportunity to start taking action.

Here are some positive steps you can take to tackle your debt this new year and get the debt-free life you deserve!

1. Make a Debt Plan

We all know just how daunting facing debt can be. It’s important to take a step back, assess your debt situation, and create a debt plan. This debt plan should include the total amount of debt you owe (including details such as interest rates, and repayment terms), as well as identifying when and how you can make payments towards it.

When you’re in debt, it’s common for emotions to take over. Suddenly, small debts can seem like a huge debt mountain. Making a debt plan to tackle your debt can help you regain control and better understand the steps needed to become debt-free.

Debt plans help take away the panic and fear associated with debt, keeping you on track to meet your financial goals.

2. Consolidate Your Debts

Debt consolidation is a great way to make debt repayment easier and more manageable. Consolidating debt means combining all of your debt payments into one single payment that is typically lower than the total amount you were previously paying each month. This not only simplifies debt management but also saves you money later on.

That’s because debt consolidation usually comes with lower interest rates, which means you pay less in the long term. This debt relief option is also good for your credit score as it shows that you are making a committed effort to pay off debt.

3. Cut Down Expenses

Having a plan to tackle debt is great, but it won’t work if you don’t have enough money. That’s why it’s important to look at ways of reducing your expenses to free up more money for debt repayment.

Go through your monthly expenses and see which ones are necessary and which ones can be cut down or eliminated. This could include cutting out unnecessary luxuries, reducing your grocery budget, eating out less often, and taking steps to save energy.

Look for ways to cut down without impacting your quality of life too much. Opting for a sharespace instead of a private office, for example, can still provide a great working environment without costing you an arm and a leg.

Taking these steps not only gets you closer to debt freedom, but it also helps you to get used to living within your means—an excellent way to prepare for your future debt-free life!

4. Look for Ways to Increase Your Income

What if you’ve cut down all your expenses and debt repayment still doesn’t seem possible? If you find yourself in this situation, it may be a good idea to consider ways of increasing your income. This could mean getting a second job or taking on freelance work. Even something as small as selling items that you no longer use can bring in some extra cash.

5. Consider Debt Relief Options

If debt repayment is still too difficult for you even after consolidating debt and increasing income, debt relief options may be the way to go. Debt relief programs can help you get debt-free in a shorter time frame, and debt counseling can provide advice on how to manage debt better.

6. Pay More Than The Minimum

Paying more than the minimum on your debt each month is a great way to tackle debt and get debt-free faster. Doing this will reduce the total amount of debt you owe as well as reduce the amount of interest you are paying.

We understand how painful paying more than you need to can be. It’s a hump that trips many debtors. But debt repayment and debt-free life isn’t a quick fix, it’s an ongoing process that requires commitment and dedication.

7. Talk to Someone

Sometimes the debt situation can be overwhelming, so don’t suffer in silence. Talking to someone about your debt can help provide insight into your debt problem as well as give you the emotional and psychological support you need.

There are debt counselors who can provide debt advice and debt management assistance, as well as friends and family members who may be able to help out financially or emotionally. Being able to keep going when debt repayment is difficult is key to debt freedom.

If you commit to following the steps outlined above, you can tackle debt this new year and pursue a debt-free life. Don’t let debt overwhelm you – with the right plan and commitment, debt freedom is possible. Start today on your journey toward debt freedom!