A Guide to Debt Management

by on November 14, 2010

There is always a situation in our lives, when we run under too much debt and controlling the situation seems to be like conquering Mount Olympus. However, no matter what is the amount of debts, you always need to be in the clear about things and think wisely and patiently.

Debts can be taken care off in certain situations; all what is required is that the person under the debt has to take some serious steps, like controlling your expenditure, and budget your income. The need to save money is increased, especially because you have to pay money to someone else.

There are certain ways, through which money can be saved and you can actually keep the debt collectors at bay.

Budget your Money

The need to budget your money is very important, remember to save all that you can and keep a minimum amount that you would save each month to pay on time for your debts. Remember not to pay the minimum payment on your credit card, as minimum payments mean that you will just end up paying more in the form of interest. The ideal way of paying off a credit card debt is to pay an amount, which is greater than your minimum, which would help in subtracting the balance on your credit card as well.

Plan Your Payments

The need to plan your payments is also necessary for people under arrears. Money needs to be paid in the form of the seriousness of the liability and not haphazardly. Try paying off the debt, which is more likely to charge you greater interest, rather than paying off the ones, with the least interest.

Work to Earn

Earn, as much as you can, try getting a second job or even volunteer to work overtime at your workplace. Remember, the more money you earn, the better t is. More the money you pump in towards erasing your debts, the better you will feel about the high debts, which you are cornered with all the time.

No More Borrowing

Don’t let the high amount of loans get to your head down and think about getting another loan, because loans happen to take you down through a vicious circle. It is better to pay off an old debt, using your own money rather than borrowing money and paying if off, to suffer further more expenses. Though, in a situation, if you happen to pay off a loan using a balance transfer from your credit card, make sure that you cut-off the card and clear the remaining balance in the card.

Know Your Rights

If the problem has deteriorated further and you’re expecting a visit from the debt collectors in the coming period of time, make sure you know their powers and your powers. Remember none of them can harass you or abuse you, they can also try and scare you by trying to tell you that you can face a jail term or that they are government representatives don’t believe them.


At the end of it, just remember that the debt you’re currently under, did not occur in a matter of seconds, but were, because of long standing financial mismanagements. It is time, to take control of the situation and deliver what is required; the solution is a five minute solution. Though, you’ll need patience to implement it. The ball is in your court, it is time to work to pay-up for your financial misdoings, all the best!

(photo credit: Getty Images)

{ 1 comment… read it below or add one }

Sam July 7, 2012 at 5:38 am

Excellent post. If some one is being harassed by bill collectors than they should know about Fair Debt Collection Practices Act which protects consumers from abusive debt collection Practices


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