Debt is a frustrating situation to be in - especially when you can barely make ends meet and you still have to worry about paying your credit. At the back of your mind, you know that it is your responsibility to pay them off even if you have no money to do so.

So what do you do when you have no money yet you are burdened with debt?

The obvious answer, of course, is to grow your disposable income. This is the amount that is left after you have paid off the expenses for your basic necessities.

There are two ways for you to accomplish this. One is to increase your income and the other is to decrease the total cost of your expenses. Both of these will require sacrifices, not just from you, but from the members of your household too. It will be very difficult for you to accomplish your debt relief efforts without their support. You cannot pinch pennies when the rest of the family is spending left and right. You have to get them on board for your efforts to bear fruit.

Your choice between the two will depend on what you are willing to sacrifice. If you will increase your income, that could mean spending time away from your family and the things that you like to do. If you want to decrease your expenses, the same thing happens. You abstain from the things and activities that you used to enjoy - at least the versions of it that require you to shell out some cash. Instead of spending money to have fun, you keep the money for your disposable income.

Debt is hard work and if you think that all these efforts is still not enough to cover your debts, then you may have to look for professional help. This is not to say that you need to hire a shrink to get your mind in the game. You can hire a debt settlement company to help you with your credit troubles.

Debt settlement or debt reduction aims to lower the debt amount that you have to pay for. This is done by careful negotiation with the creditors that you owe money from. They will haggle for a debt settlement amount that is usually significantly lower than your outstanding balance. If they agree, you only have to pay for this amount and the rest of what you owe is forgiven or discharged.

This debt relief program will require you to default on your payments deliberately so expect that your credit score will suffer from this debt relief program. However, this will only be temporary and as you continue to pay off your debts, you will realize that your credit score will increase and get better. Your credit report will also reflect that you “settled” your debts and you did not pay it off - which will indicate that you have gone through this program. Future lenders will know that you have troubles paying back a loan in the past - but this is not as damaging as having a bankruptcy stain on your credit history.

Keep in mind that any of these options to get out of debt will be hard and you need to be determined to get out of debt in order to achieve financial freedom. You have to realize that making a commitment is important to achieve a debt free life.

Author's Bio: 

Debt Settlement can effectively get you out of debt. Whether you decide to work with a professional or not, National Debt Relief can assist you with any questions that you may have about this type of debt relief. Know if debt settlement is the answer to your credit problems here: http://www.nationaldebtrelief.com/debtsettlement/.