Manage Your Debt

debt stress

8 WAYS TO MANAGE YOUR DEBT MORE EFFECTIVELY SO YOU CAN MOVE FORWARD

Everyone out there has some kind of debt. I don’t know of one person who doesn’t have one. I know people that have loans for bad credit, too.The trick is managing your personal debt more proactively. Below I have listed 8 ways for you to do just that.

MAKE A LIST

Make a small list of the people you own money to. Include on the list the name of person/company and the amount of money you owe. Include how much you pay and when you pay it off each month.

At the end of each month go over this list. Are there any changes? Make the necessary changes and move on. Go over the list at the end of the year. There might be some bills that no longer need to be paid. Make the necessary changes. This is all part of managing your debt more efficiently.

PAY ON TIME

This is a big one. Most of make a habit out of paying late or paying only the bare minimum. Doing this will allow the interest to grow. Did you know that 90% of your debt comes from interest alone. The other 10% is wrapped up in the principal amount. Pay on time, If you can pay more than what is expected. This will help to bring down the debt as well as the time period for the repayments.

WHAT DO YOU PAY OFF FIRST

This falls under the subject of prioritizing. Make a list of the bills that need to be paid off first. Some of these could be credit card debt, while others are for something else. The best thing to do is pay off all the lower ones first. Get them out of the way. Once you do you will have a clearer path to go down.

COLLECTIONS ARE THE FIRST TO GO

If you are receiving calls from a collection agency, do not ignore them. Get these paid off as soon as possible. This could take a while, it all depends on your circumstances. Same thing goes for the charge-offs. Get these two paid down right away.

As long as you are making the necessary payments you should be fine. They will continue to call, it’s all part of their job. As soon as you pay them off, the calls will stop.

SOME FINAL TIPS ON HOW TO HANDLE YOUR PERSONAL DEBT

past due loan paymentThese fall under numbers 4-8. If you have to, use an emergency fund to back you up. This is why it’s there. You might not have any savings left over, but your debt will be gone. Use a budget. Write down where all your money is going to and stand by it. Create a calendar to help you keep track of your expenses and what bills you are paying. Last but not least, know when to admit you need help. Admitting you need help is one of the hardest things for most of us to admit to.

If you want to bring down your debt and manage your money more effectively, it’s in your best interest to put aside the pride and ask for help. Google out site online. We have more resources for money management at your disposal.