a laptop on a table

Media / Blog

What to Do If You Can't Pay Off Your Debt


4 Common Cryptocurrency Scams

September 11, 2023

It's normal to be in debt. What's not good is to find yourself on a collision course to insolvency as you lose your capacity to repay what you owe. Allowing debt to grow won't bode well for your financial future. Instead of paying for other personal goals, you will be left earning at the service of your creditors.

Downgrading your credit score isn't the only thing an unpaid debt is capable of doing. You will be pushed to a corner where you're unlikely to recover from. It's either you lose money to interest fees and penalties or face legal problems that get worse over time. Financial burden is hard to get away from unless you're using the right approaches. With the guide below, you should be able to get out of debt even if you lack the means to write it off.

1. Keep an inventory of all of your debts

Before choosing the right way to address your financial problems, taking a look at your debt situation more closely will help you make the best possible decisions. Comparing the money you owe to the money you earn each month helps. With this, you can choose a debt relief strategy that makes practical sense. Once you have a good idea about the amount of debt you owe, you can simplify your repayments without causing your current debt to balloon.

2. Try negotiating with your debtors

Many lenders would give you a forbearance or opt for workable repayment terms, but this is often not the case if you owe more than you can earn. The best case scenario is when a lender agrees to a debt settlement in which the total dues are reduced so long as you agree to pay a portion of the amount outright. Before accepting such terms, make sure to review the agreement with the help of a debt relief counselor like Doyle Salewski who can provide the best possible options to consider.

3. Apply for a debt consolidation loan

Immediate debt relief is possible, and one way to do that is to apply for a loan meant specifically to reduce the money that goes to interest fees. This is known as a debt consolidation loan and it comes in handy if you have insufficient earnings and too many debtors to deal with. The benefit you would get from this is the fact that you get to pay lower interest. That way, you can still save money and complete your repayments faster.

4. File for bankruptcy and cut your losses

Negotiating with lenders could hardly end well for you unless you have a positive repayment history with other debtors. A better route would be to file for bankruptcy. At least by announcing you're bankrupt, creditors are not obliged to force you into coughing up the money you owe. Through a bankruptcy court, you will be able to repay your debts through a manageable repayment plan. While this doesn't necessarily write off your debt, you could at least get enough financial breathing room.


Having too much debt isn't the end of the world. So long as you apply the right strategies, you can get out of financial trouble and still live comfortably with fewer money worries.


Navigating the Claim Settlement Process With a Public Adjuster

About the author

Pat Lee

Pat is a digital marketer who has several years of experience in working with non-profit organizations. She has extensive knowledge in the fields of Education, Computer Science, and Psychology. When she isn't helping build brands, she practices Muay Thai and run marathons.

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.