In these troubled economic times, many people are struggling with debt that is spinning out of control. Here are a few ideas for you to consider if your debt situation is causing you undue stress.
6 Tips To Help You Manage Your Debts
1. Get a handle on the amount of your current debt. There are debt relief calculators available on the net to help you figure out how long it will take you to pay off the debt and how much interest it will cost. Start with using a minimum payment, and then adjust it so you can see how much you can save by paying the debt off sooner. You can also plug in a date as your goal to being out of debt and see what those payments might be. You may be surprised to find it more manageable than you thought.
2. Consider a debt settlement program if your debt is over $10k. In many cases, a reputable debt relief company can negotiate the debt management down for you to make it even more manageable. They can often negotiate a better deal than you can for yourself because they can combine your debt with other people’s debts and thereby negotiate for a much larger sum.
3. Develop a budget you can live with, but make sure your outgoing expenses do not exceed your incoming revenue. Prioritize your debts and be sure to start an emergency fund if you don’t already have one. Obviously, you do not want to incur more debt, and one way to do this is to have some money on hand for emergencies.
4. Try to find ways to cut down on expenses. Perhaps the cable bill could be adjusted by dropping some pay channels, or a different phone plan may work at a lower cost. Many people are over insured. Even the small items can add up and make a difference in your debt management.
5. Consider using online banking for the convenience, and make automatic payments wherever possible. This will help you stay current and relieve some of the burden of maintenance. Take care not to have too many bank accounts. One checking and one saving are usually sufficient, though if you travel for work, it might be wise to have a separate one for just those expenses.
6. If you area able to refinance a home, now would be a good time to do so. Rates have never been lower, and there is currently talk about loosening up the eligibility requirements. It is definitely worth looking into.
Debt management does not have to be painful debt management. Try not to let the situation get you too depressed. There is help available and you are not alone. Stay focused on dealing with the debt and think about how great it will be to be debt free.