Debt Management Tips

People with either little or large amounts of debts need to manage them. When you have a small amount of debt, do not assume and imagine that you can pay it at a go. Ignoring little debts may lead to them going beyond your control. When you have a huge amount of debts, more effort need to be put in managing and clearing them. Below are the proven tips that can assist you in managing your debts.

Know Who and How Much You Owe


A list of your debts is very important. these debts might include the creditor, monthly payment, total amount of the debt, and the due date. Confirming the debts on your list can be done using the credit report. When all debts are in front of you, it assists you in having a big picture and staying aware of your complete picture in debt payment.

Creating a list and forgetting about it is wrong. Periodically refer to your debt list in the process of paying your bills. As debt amount changes by either increasing or decreasing, ensure you update the list after every few months.

Paying Your Bills on Time Each Month

Payment of debts becomes harder when one pays debts late. This is because, for every late payment you make, you have to pay a late fee. Missing two payments in a row will lead to your finance rates and interest rate increases. You can use the calendaring system on either your smartphone or computer to remind you few days before the payment is due. In case you miss paying your date on a given date, do not wait until the next set date. This is because this can result in you being reported to a credit bureau. Always make sure you send your sends immediately when you remember to send.

Creating a Monthly Bill Payment Calendar

monthly calender

A bill payment calendar will be useful in determining which bills to pay with which paycheck. Next to the due date on your calendar, write the amount of each bills payment amount. After that, fill in the date of each paycheck. The calendar can be used every month if you receive your payment on fixed dates every month. In case your paycheck is falling in different days in a month, make a calendar monthly.

Making At Least the Minimum Payment

At times you will find that you have very little to pay. No matter how small the amount is, pay it. Though you will not have made any real progress, at least someone will see the effort you put in clearing your debt. It also helps in keeping your account in a good stand and keeps your debt from growing. Missing payments may make it harder for you to catch up and may lead to your accounts going into default.…


Tips for Preventing Bankruptcy

Many people have been filing for bankruptcy to get out of debts. This is considered as one of the easiest and quickest methods of eliminating some debts. Some people get more in return than what they have bargained for after filing for bankruptcy. These are some of the hassles that you can avoid by preventing bankruptcy. Unexpected unemployment and medical bills have been forcing people, into uncomfortable financial positions. Insolvency is also associated with poor saving and spending habits. Adopting the strategies discussed in this article is going to help you in preventing or avoiding bankruptcy.

Cut Spending


Budgeting is one of the easiest and quickest ways of handling and controlling your spending habits. You should also curb your spending. You should always make an effort of paying for your purchases in cash and cutting up on the credit cards. Downsizing your lifestyle is another great strategy that is highly recommended. Some of the key areas that you need to downsize on include:

  • Driving a less-expensive, older car
  • Skip going on long vacations
  • Selling your motorcycle, boat or recreational vehicle
  • Moving to a small house

Any spending that is beyond the absolute necessities should be eliminated. Luxuries such as dining out, magazines subscriptions, and visiting the spa should be avoided at all costs.

Maximizing Your Income

The money saved by minimizing your expenses might not be enough to pay for the living expenses. It is therefore important to maximize your income. Getting another job is one of the obvious ways of doing this. Those who have a second job should consider taking a third one.

Seeking Professional Help

financial counsellor

Individuals who are in troubles should turn to experts for advice. Getting a helping hand from an expert is one of the best ideas when it comes to financial issues. The little fee that you pay can help you in escaping your debts. It is a practical solution for those guys who have been victimized by lending firms. Counselling has helped many people in curbing their spending and closing their wallets. Individuals who need professional help should look for experienced credit counsellors.

A Permanent Change

Some people are known for using recovery from insolvency as an excuse of appending again. You should avoid following this example. Building an emergency fund can help you in staying out of debts and getting your financial situation on track.…