Though debt certainly isn’t something you should look the other way on, it’s actually not as hard to manage as you may think. In fact, there are numerous ways to not only manage your debt, but to do so in a timely manner.
In addition to the many different strategies and payment methods listed online, there are also a plethora of consolidation companies, who’s sole purpose are to make your financial life easier.
In the article below, we have listed out the top five methods for managing debt. So, if you’re someone who is wanting to eliminate yours as quickly and easily as possible, then be sure to keep on reading!
1. Make A List
Though this step may be often overlooked, it is certainly very important. By making a list and writing down everything that is past due, you have a much clearer overall picture of the payments you need to make, and the money you need to put away each month in order to do so. It is also important that you keep this list somewhere where you can see it daily. That way, you have a constant reminder of the debt management goals you set, and they stay fresh in the back of your mind.
2. Set Up A Payment Plan
Payment plans are also extremely beneficial, especially for those with exceedingly high amounts of debt. The plans are monthly, and most collections agencies will be happy to set you up with one. Agreed upon amounts are automatically deducted from your checking account too, that way, you don’t have to remember to call and make a payment each month. This will take some time of course, but it will help put a dent in your debt, while also improving your credit score!
3. Work With A Debt Consolidation Company
Serving as perhaps the most popular debt management strategy around today, consolidation companies are certainly a great option. They have helped millions of people worldwide, and are very easy to work with. However, if you are someone with minimal amounts of debt ($5,000 – $10,000), then choosing another method may be best. This is because most consolidation companies only work with those in serious financial trouble.
4. Open Up A Savings Account With Your Bank
Assuming your bank doesn’t charge a monthly fee, opening up a savings account could be very helpful. Not only will it allow you to put money away and forget about spending it while you’re out, but it will also garner interest, and make your debt managing a lot easier. The best way of going about this is by putting a specific amount of each paycheck towards savings (preferably the same amount each time). This method will take a lot of self control and determination, but is well worth it in the long run.
Another important factor (and very beneficial method) in managing your debt, is prioritization. By deciding which payments need to be made first, you can eliminate the bulk of your problem a lot quicker, and also reduce your stress levels. Whether you prioritize based off due dates or payment amounts, this method should certainly come in handy. This method is especially useful for those with strong organizational skills.