12 Debt Management Tips For Every Month

12 debt management tips

Many people resolve to get their finances in order for the new year. This resolution to manage debt, however, seldom gets very far.

Without breaking the task down into bite-sized bits to be tackled month after month, you are sure to be making the same exact resolution next year.

If you want to manage debt next year, here are some tips you can use.

January: Start a spending journal.

Write down everything you spend for the month of January. This will make you more aware of what you spend. It will also help you see how much of your money is wasted on trivial things.

February: Write and follow a monthly budget.

Based on the spending journal you kept, write a plan that included your regular expenses, your monthly debts, and your needs. Leave yourself a small allowance for miscellaneous things so you won’t feel deprived.

March: Start a filing system.

Purchase a file cabinet and file all of your bills both paid and unpaid for the last two months. Use this filing system to keep your bills organized for the entire year.

April: Get Your Taxes done on time.

Now that you are organized, spend the month of April getting your taxes done on time. Whether you are due a refund, which will help with your bills, or if you owe money, it is wisest to face it and make a plan for how you will pay the money or how you will spend it.

May: Create a debt payment plan.

Take a look at all of your credit cards and loans, and get a full idea of what you owe. Make a list of these bills in order of highest interest rate to lowest and plan to pay off these bills in that order. Pay the minimum of all the other bills and then pay as much as you can on the bill with the highest interest rate. When that is paid off, move to the next bill and begin to pay it off. Finally, get an emergency loan from ElcLoans or a similar website to catch up with your bills.

June: Contact your creditors.

Let your creditors know your plans for repaying them, especially if you are behind on any bills. If possible ask them for help in getting your bills up to date by reorganizing or re-aging the loans.

July: Cut back on your monthly expenses.

Look at your utilities and see if you can save money by bundling, unbundling, or changing companies. Cancel your unused gym and other memberships, and your magazine subscriptions. Decrease your cable and internet subscriptions as much as possible.

August: Treat yourself.

Take a short vacation or stay-cation. Don’t go crazy, but spend a little extra on yourself this month as a reward for your hard work. Do not, however, spend what you don’t have.

September: Make extra income.

Look into part-time jobs, stay at home opportunities, self-employment options. You can tutor, sell items on eBay, or get a part-time job in a retail establishment. Use this extra money to accelerate your debt payment plan.

October: Become Frugal.

Purchase energy-saving light bulbs, rechargeable batteries, and use less cleaning products. Learn to cut coupons or begin shopping in less expensive stores such as ALDI’s and warehouse clubs. You will also want to read a book or two on frugality.

November: Start shopping for Christmas early.

Avoid the December rush to purchase gifts so you don’t incur new debts to start paying off at the first of the year. Firstly, don’t spend more than 2 weeks pay on Christmas gifts. Start putting aside that amount the first week of November.

December: Review your successes for the year and make plans for managing debt in the next year.

Take Action with a Debt Management Plan

debt management plan

Debt management plans are basically an agreement that is written to help struggling people pay their monthly repayments. They do this by offering a single monthly payment, which is usually more affordable.

These debt management companies negotiate terms on the interest. Usually ending up in freezes until the debtor’s outstanding accounts have been collected. This way, you don’t take any more interest on your loans, and you can start paying back the principal amount. This also stops any type of legal battle against the debtor. So you can kiss the bill collectors, goodbye. This is one of the best ways to tackle debts without trying to get another loan.

Debt management companies are the perfect type of people that you want to be dealing with creditors they can make it so you only have one low monthly payment. They also make sure to do a comprehensive analysis of your particular situation. And because of the efficient management of these debts and helps improve your credit score. Also, by making sure that a payday is never missed, late fees and penalties are a thing of the past. These debt solutions start with an accurate assessment of your situation,

Try not to file for bankruptcy. Bankruptcy ruins your credit, practically forever. There are much more workable debt solutions. If you have full credit cards, and loans and other debts then consider debt consolidation. That consolidation takes all of these debts and put them under one umbrella, which makes it far easier to pay off. This usually makes for a smaller monthly payment. And you don’t have to deal with multiple lenders like before, now it’s only a single lender. Your debt negotiations take place through experienced debt management expert on your behalf.

Getting rid of debt is actually quite a simple process once you use resources available to you. By taking advantage of these teams of people willing to help you further your cause of living a debt-free life. After working with these companies your credit score can be higher than what it used to be. This is getting rid of debt that tension-free way.

Debt Management Solutions That Work

debt management solutions that work

Everyone can get into debt at one point or the other.

The important thing is knowing when to ask for help.

The thing with debt is that most people keep it to themselves, thinking that it is an embarrassing and an even taboo topic to bring up to friends and family.

However, debt is something that should be taken seriously and when you find yourself deep in debt, it is almost impossible to get out of it without any help.

There are a lot of organizations that can help you manage debt. In fact, you just have to search online and you will find a number of debt management solutions that you can choose from.

There are debt settlement programs, debt consolidation, and even debt management, all catered to helping you get out of debt.

The question, however, is how to choose the debt management solution that works for you. Here are some of the most popular solutions that should help you out in choosing what could work for you.

Restructuring Loans: Debt Settlement and Debt Consolidation

You have two ways to restructure your loans. You can either go for debt consolidation or debt settlement. In debt consolidation, a finance company buys all your debts from your creditors and then sets up a new payment plan for you.

By consolidating all your debts, you now only have to worry about making one monthly payment and having to deal with only one interest rate. Most of the time, debt consolidation allows you to have less monthly payments with your debt spread out in a long period of time.

Debt settlement, on the other hand, is when you and your creditors get into a compromise about the total amount that you owe.

However, most creditors don’t deal with the person themselves but with a debt settlement company who will be the one to negotiate for a better deal in your stead.

Most debt settlement programs can take out 40-60% off your debt.

Debt Management

Another option that you can take is to get into a debt management program. A debt management program provides you with a payment plan to help you better pay your creditors but you won’t be paying your creditors, instead, you will be giving your payments to the agency and they will be the one to negotiate with your creditors.

Debt management plans work because they provide counseling to make sure that you don’t fall back into getting more debts.

Bankruptcy should be your last option. There are a lot of debt solutions offered to you so just make sure that you are dealing with a legitimate company and you should be on your way to achieving a debt-free lifestyle.

If you like this, you may be interested in this debt management article.