How do I deal with debt that is much more than what I earn?

Lara asks: How do I cope with debts that are much bigger than what I am earning now?

Debt can really seem unmanageable when it adds up to more than you earn in a year. Fortunately, there are millions of people who have overcome this situation, and you can too.

I would refer you to my original Get Out of Debt in Seven Steps series of articles. This should lay the groundwork for any serious plan to get out of debt. The key is to make a plan and stick to it. If your debt’s really big compared to how much you earn, it’s going to take longer to get out, but you can still get out.

If you’re behind on your payments and dealing with late fees and collectors, a debt management program may be considered. Just do your homework; they’re not for everybody.

Once you make this plan, I’d look for ways to increase your income.

Be on the lookout for a higher paying job, or take on second job until you get out from under your debt. It’s not fun, but sometimes it has to be done.