Gambling Debt – Become Debt Free

Steps to pay gambling debts

1. Stop accumulating more debt (stop gambling, cut spending/ credit cards)
2. List all the debts and personal loans (asses your financial situation)
3. List your assets and incomes (your resources)
4. Prioritize the debt (gambling debt strategies)
5. What can you do to lower the interest rates and maximize the down payments?

So far, we have talked about breaking free of gambling debt management and the problem of stopping accumulating new debt and listing everything you owe. Now it’s time to list the resources and means to start clearing the gambling debt. Make a list of the assets and income you have that you can use for the payment plan:

• Salary
• Anything you can sell?

People often focus on the negative qualities problem gamblers have. BUT, to sustain a gambling problem, a problem gambler is often very resourceful! We believe you are more resourceful than you give yourself credit for. The more money you can generate, the sooner you’ll be able to repay your loans and repair the negative consequences of gambling.

#GamblingNotAnOption, #Warning – Visit online gambling sites or sports betting isn’t debt management. We know gambling will be tempting – You, like many others, will think more than once that a big win would solve everything. BUT IT’S NOT TRUE! Just ask yourself what happened those times you won. Did you stop gambling then or continue until you had no money left? For someone with a gambling addiction, gambling has nothing to do with winning anymore. A problem gambler will just continue playing.

What can you do to generate more money?

• Take an extra shift?
• Do you have anything you can sell?
• Can you take a second job? Or do some freelance work?
• Any chance you can get a raise at your current job?
• What are you good at that can generate value for other people?

Tips – Lower your costs

Another way to improve your cash flow is to decrease your costs. Here are 11 things you can do to lower your living costs so you can spend a larger part of your income on paying off your gambling debt.

• Budget: Create and stick to a budget to understand your income and expenses clearly.
• Groceries: Cook at home more often and plan meals to reduce impulse buys.
• Utilities: Turn off lights when not in use, unplug electronics, and use energy-efficient appliances to lower utility bills.
• Transportation: Use public transportation, carpool, bike, or walk instead of driving alone.
• Shopping: Buy items in bulk, on sale, or secondhand. Avoid impulse purchases.
• Subscriptions: Cancel unused memberships and subscriptions like gym, streaming services, magazines, etc.
• Entertainment: Enjoy free or low-cost entertainment such as parks, libraries, or local community events.
• Housing: Consider getting a roommate or downsizing to a smaller living space.
• Insurance: Shop around for the best health, home, and car insurance rates.
• Cell Phone Plan: Switch to a cheaper cell phone plan or use family plans.
• DIY: Do your own basic home and car maintenance.
• Health: Practice preventive health care to avoid high medical bills in the future.
• Clothing: Buy classic pieces that mix and match easily and can last longer.

The Avalanche method – Start with the most expensive debt

When you assessed your financial situation above, you listed all gambling debt. In the Avalanche method, you sort the debt by interest rates starting with the highest. The advantage of this method is that you quickly lower the overall cost of your debt problems. With a fixed monthly payment, a larger portion of the payment goes to paying off the debts every month. Remember, paying the costs of the debt doesn’t make the debt smaller. So seeing the cost goes down can be a huge boost of motivation to continue.

The Snowball Method – Start clearing the smallest debt

The financial guru Dave Ramsey is a big advocate of the Snowball Method to escape gambling debt. While the logic says to follow the avalanche method and begin the most expensive debts, Dave Ramsey believes in small rapid wins to get started. In the Snowball method, you sort the debt due to size. You list the smallest gambling debt first. The benefit of the Snowball method is that it can clear your first, second, and third sports betting debt relatively fast. You may pay off the first small loan directly by organizing your income and resources. The Snowball method is a good choice to stimulate your motivation.

• Celebrate every paid debt! Create a ritual or ceremony to praise yourself for clearing a debt on your list. Use your imagination. Some people enjoy ripping the debt document in half; others set it on fire or drop it in a special paper bin. Celebrate each paid-off gambling debt as a victory, something to be proud of. You’re taking responsibility for the financial consequences of gambling problems and getting one step closer to gambling debt-free.
• Stay on top of current bills! Before starting the snowball or avalanche method, you must be current on the bills. Make sure to pay utility bills, home equity loans, and credit cards. (We recommend not using credit cards at all from now on.) By staying on top of your current bills, you’ll not accumulate more debt, and it’s easier to focus on your payment plan.

• Pay more than once per month. Some pay one fixed monthly payment, and it’s good to ensure you pay at least once a month. But, if you get an opportunity to pay more money during the month, don’t hesitate to do so. It’s easy to get itchy fingers to buy something for the extra money. By creating a habit of paying more than once monthly. It’s easier to resist spending the extra money as soon as you make it. WOW, be proud of yourself for each extra payment you make!
• Pay more than the minimum. You can reduce your debt and save on interest charges by consistently paying more than the minimum required monthly. The idea is to make additional payments regularly, which helps to speed up the loan repayment process.
• Buffer for Unexpected Expenses. Set aside some money for an emergency fund. The fund can cover unexpected expenses like a medical bill or car breakdown.

• DO – Cheer them on and be there if they need someone to talk to.
• DO – Help them understand financial terms
• DO – Help explore debt settlement and gambling debt relief options
• DO – Help consolidate loans to decrease the interest rate.
• DO – If you want, you can offer to take financial control by getting the person with a gambling problem salary to your account. That way, you can ensure the monthly debt payments are made first.
• DO – Help them get find nonprofit credit counseling agencies to get support.
• DO – Explore options to help them beat their gambling problem. For example, join them on QuitGamble.com or encourage them to visit support groups like Gamblers Anonymous.

• DON’T – Never pay their debts! Don’t give them any gambling debt relief in order to be helpful. They must pay for themselves. Taking responsibility for their compulsive gambling actions is critical for them to stop gambling.
• DON’T – Never lend them money. Even if it sounds like a good idea, you have a good intention. Lending money to problem gamblers is a way to enable their problem gambling.

In some cases, the mountain of debt is too big. When the debt costs are higher than how much you can pay each month, you need to consider other options, including debt settlement, gambling addiction and bankruptcy, and getting debt suspension. These are ways to decrease debts by talking with your lenders.

What is Gambling Debt Settlement?

Debt settlement is a process where you negotiate with your creditors to pay a lump sum less than the total amount you owe. It can help you clear your debt faster and for less money. However, it can hurt your credit score, lead to collector calls, and potential tax implications as forgiven debt may be considered income. It’s advisable to consider all options, including debt counseling or a debt management plan or plans, and consult a financial advisor before proceeding with debt settlements.

What is Gambling Debt Suspension?

Debt suspension temporarily halts your loan repayments, providing relief during financial hardship. However, interest may still accumulate during this pause. Always consult your lender for their specific terms.

Debt suspension is an alternative to debt settlements. It could give you some extra time to get back on your feet by paying off other more expensive debts. To improve your chances of getting a settlement or suspension, you must actively work on your gambling problem. We highly recommend you read the gambling relapse guide, especially the part about self-empathy. It’ll help you understand what gambling does for you and why you have acted the way you’ve done.

Gambling Addiction and Bankruptcy

The last resort is to file for bankruptcy. Bankruptcy aids individuals unable to settle their debts by offering a new beginning. This is achieved by selling off assets to cover the debts or formulating a repayment plan. One American study showed that 20% of gambling addicts had filed for bankruptcy due to gambling.