subject: Quick Fixes to Manage Debt [print this page] Quick Fixes to Manage Debt Quick Fixes to Manage Debt
Living with debt is a burden that becomes heavier by the day if not managed effectively. Most of us live with debt and do not realize the seriousness of it until it's too late. Credit cards are now a way of life, so it is important to use them wisely. It is important we realize that every big purchase we make with a credit card is a purchase made with money we do not have.
The attractive offers and competitive interest rates offered by credit card companies make it difficult for us to resist spending more, especially during the holiday season. Keeping track of expenses and disciplined spending are the keys to efficient debt management. Here are a few factors that help in managing debt:
Budget It is the first and most important factor. A monthly or weekly budget for expenses and income gives you total clarity on how much of your debt you can afford to pay off every month. Budgeting also helps you plan ahead for the best possible way to repay all of your debts.
Take help If you are not able to cope with the stress of it all, contact a reputable organization that deals with debt management or debt consolidation services. They will help you focus on debt repayment and help you make a plan to reduce debt.
Highest rates first Pay off the balances of debts that have higher interest rates first. Also, depending on your budget, pay the minimum payments on your other debts as well. Chalk out a debt reduction strategy, and try to follow the plan with disciplined spending.
Raise your income Paying off minimum balances doesn't reduce debt considerably. It is important to pay more every month to be completely free of debt. By taking on an evening job or working overtime you can add money to your income, and pay back more every month.
Taking control of your debt situation early on helps you to manage it far more efficiently. Keep track of your expenditures, and focus on your debt management plan. Smart thinking and disciplined spending go a long way toward leading a debt free life.
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