Debt Management Tips
A debt management tip or two (or several, for that matter) can significantly help people who are unsure how to manage their money, credit, and debts. Debt management tips can be found from numerous sources, including Internet sites, credit counseling services, banks, even friends and family. While most of the debt management tips are probably legitimate, beware that not all advice is good advice.
The best debt management tip is an obvious one: avoid debt in the first place. Some of the wisest (and, in fact, wealthiest) people buy only what they need, pay in cash, and avoid overextending themselves financially. Although this sounds a bit old-fashioned or idealistic, it is a debt management tip that offers a lifestyle worth considering. However, if you are already in over your head, this particular debt management tip offers little comfort and help.
If you are currently experiencing the burdens of debt, other debt management tips are necessary. One of the first things you should do is make a thorough listing of all sources of income and all of your expenditures. Include all liabilities, indicating specifically who is owed and how much the balances are (not just the minimum payments). Armed with this information, you may be able to devise a budget on your own. The debt management tip here is to look very carefully at where you are spending money. Many people don't realize how much money is wasted on a daily or weekly basis because "it's only a dollar" or "it's on sale."
Once you've recognized that you do, in fact, have some extra funds, you can cut back on your spending and use that money to pay down your debt. This brings us to the next debt management tip, which is to pay as much as possible on the debt with the lowest balance first. Then when that one is paid off, move on to paying off the next lowest balance. This debt management tip gives a sense of accomplishment and motivation.
If you've tried to budget and you haven't been successful so far, the next debt management tips are for you. Consider calling a credit counseling service for assistance. These agencies can work with you to develop a workable budget, help settle your debts with your creditors, and provide you with valuable information about other debt management tips and alternatives including loan consolidation and bankruptcy.