8 Ways To Exhibit Debt Management

When You are indebted.you dont have peace of mind but you can as well plan your spending and money in order to pay back the debts if you follow my simple strategy to debt management Know the person you are owing and how much is involved Make a list of your debts, including the creditor, total amount of the debt, monthly payment, and due date. You can use your credit report to confirm the debts on your list. Print your debt list and refer to it periodically, especially as you pay bills. Update your list every few months as the amount of your debt changes. Pay your bills on time each month. Late payments make it harder to pay off your debt since you’ll have to pay a late fee. Miss two payments in a row and your interest rate and finance charges will increase. If you use a calendaring system on your computer or smartphone, enter your payments there and set an alert to remind you several days before your payment is due. If you miss a payment, don’t wait until the next due date to send your payment, by then it could be reported to a credit bureau. Instead, send your payment as soon as you remember to.make sure you pay part of the money no matter how small Create a monthly bill payment calendar. Use a bill payment calendar to help you figure out which bills to pay with which paycheck. On your calendar, write each bill’s payment amount next to the due date. Then, fill in the date of each paycheck. If you get paid on the same days every month, like the 1st and 15th, you can use the same calendar from month to month. But, if your paychecks fall on different days, it would help to create a new calendar for each month. Make at least the minimum payment. If you can’t afford to pay anything more, at least make the minimum payment. Of course, the minimum payment doesn’t help you make real progress in paying off your debt. But, it keeps your debt from growing. When you miss payments, it gets harder to catch up and eventually your accounts could go in default. Decide which debts to pay off first. Credit card debt is the best candidate to be repaid first. Of all your credit cards, the one with the highest interest rate usually gets priority on repayment. Use your debt list to prioritize and rank your debts in the order you want to pay them off. You can also choose to pay off the debt with the lowest balance first. Pay off collections and charge-offs. When you have limited funds for repaying debt, focus on keeping your other accounts in good standing. Don’t sacrifice your positive accounts for those that have already affected your credit. Instead, pay those past due accounts when you can afford to do it. Be aware that your creditors will continue collection efforts on your account as long as you have an outstanding balance. Use an emergency fund to fall back on. Without access to savings, you’d have to go into debt to cover an emergency expense. Even a small emergency fund will cover little expenses that come up every once in awhile. First, work toward creating a $1,000 emergency fund. Once you have that, make it your goal to create a bigger fund, like $2,000. Eventually, you want to build up a reserve of six months of living expenses. Use a monthly budget to plan your expenses. Keeping a budget helps ensure you have enough money to cover all your expenses each month. Plan far enough in advance and you can take early action if it looks like you won't have enough money for your bills this month or next. A budget also helps you plan to spend any extra money you have left after expenses are covered. You can use this extra money to pay off debt faster. EVEN IF YOU ARE OWING A MILLION DOLLARS,YOU CAN PAY BACK WHEN YOU FOLLOW MY DEBT MANAGEMENT STRATEGY ....