When you have heavy debt weighing on you, you may need to take some drastic measures to dig your way out.
Some options to getting out of debt are:
1.) Cashing in some of your 401k, or borrowing against it. Just keep in mind that cashing it in will cost you penalties, and borrowing against it should only be done in dire emergency, because it’s trading one type of debt for another.
2.) Taking on a second job until your debt is under control. Yes, it will likely be exhausting and stressful, so don’t do it forever. However, if it means saving your credit rating or keeping food on the table or the repo man away from your door, then it’s worth doing until you’ve paid done some of your debt and set aside some savings.
3.) Selling personal possessions. You can do this at a pawn shop, a garage sale, or on eBay. eBay is most likely to get you the best results.
4.) Selling your vehicle and taking public transportation. This also savings you money in car insurance costs and gasoline and repairs. Owning a vehicle takes a big chunk out of your paycheck every month.
5.) Selling blood or participating in medical trials for money, or both. Again, we said “drastic measures”.
But remember, once you have paid down your debt, do not turn around and start running up your charge card again. If you do, eventually you’ll run out of options and risk ruining your credit rating or losing your house or car.
