9 Tips for Managing Your Debt

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Dealing with debt can be overwhelming. It’s difficult to figure out where to start or how to proceed. Use these 9 tips to get started.

Know How Much You Owe

This may seem obvious, but plenty of people have no idea how much debt they have. Add yours up and make a note of it. 

Make a Budget

Creating a budget will help you get an idea of how much money you will have to pay off debt. Look at your budget to see where you can cut expenses so that you can pay off more and get out of debt more quickly.

Negotiate With Creditors

Some creditors will agree to payment plans or settlements. Call them and negotiate terms that work for you and your budget.

Consider a Credit Counselor

If you are uncomfortable negotiating on your own behalf or not sure how to go about paying your debt, consider working with a credit counselor. Just make sure that they are reputable and know what they are talking about.

Consider Debt Consolidation

If you have a hard time juggling different payments, look into a debt consolidation. To avoid scams, ask if your bank offers them.     

Prioritize Your Debt

Figure out which of your debt is more of a priority than others and pay that first. You may decide based on secured versus unsecured debt, the amount size, or a combination of factors.

Pay More Than the Minimum If Possible

If you can pay more than just your minimum credit card payment, do so. The more you pay, the quicker you pay this debt off.

Repay as Quickly as You Can

This may sometimes mean going without some non-necessities, but getting rid of your debt as quickly as possible will almost always be worth it. 

Avoid Creating More Debt

Don’t dig a never ending hole for yourself by creating more debt when you are paying old debt off. Avoid using your credit cards or taking it loans. 

The most important factors in paying off your debt are discipline and patience. Remember that it will not happen overnight, but if you keep at it, eventually you will be debt free.


By: Alecia Stanton

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