Ask Away...: 3 Tips for Managing Your Debt

Monday, January 29, 2018

3 Tips for Managing Your Debt



Debt is something that almost everyone out there has at some point in their life.  Some people manage to pay their debts off completely and some seem to spend their entire life paying down debts like student loans or mortgages.  Debt can be very overwhelming and very stressful.  Debt is something used to weigh on my mind every minute of every day before I managed to pay off all my credit card debt completely.

Today I wanted to put a couple of quick tips together that you should keep in mind when it comes to tackling and managing your debt. 

1. Know Who and What You Owe
One of the reasons I always felt overwhelmed by the idea of my debt was because I didn't even know the exact figure of what I owed.  I was afraid to figure it out but once I did, I felt a lot better because I had an actual dollar amount that I could work towards paying off.   You also need to make sure you have a list of what amount is owed to whom.  And before you get nervous because you envision having to deal with creditors, just know that there are companies like Nationwide Debt Reduction Service that have ongoing relationships with those creditors.  They can negotiate on your behalf. 


2. Create an Action Plan
Once you have sorted out the details of your debts, you need to figure out a plan of attack.  Are you going to pay the biggest debt down first or are you going to enjoy little victories and work smallest to largest.  Are the amounts too big for you to tackle?  This is another case where a debt reduction service can help. Often times a service like this can negotiate with your creditors to settle on an amount that you can realistically pay and then they devise a payment plan to get you to that goal in a certain amount of time.  If you have creditors after you, time is definitely of the essence and you need to decide on a payment schedule that you can follow to eliminate these debts and satisfy the creditor.

3. Focus on the Goal
Your lifestyle may need to change which means less spending and more conservative actions with your income.  Working with a debt reduction service is a great way to start a commitment to achieving your goals but the hard work is done solely by you.  You may need to give monthly luxuries up in order to pay that money towards your debts.  If you make the sacrifices now, the payoff will be great but you can't expect to resolve your situation without changing your behavior.  When I paid off my debts, I was so glad that I could go back to a more comfortable way of living where I was able to buy myself a coffee here and there.  The way I lived while paying off my debt actually helped me change for good and I am forever more careful with where my money goes. 

Debt can feel crippling but with a few important actions on your end, you can head down the path of eliminating your debts and living a more financially fit way of life. 



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