Four Quick Debt Management Solutions

By Max Webber
In June 25, 2010

We help those in difficult financial situations get out of them; but, in addition, we also help people stay out of debt through debt management counseling.  Our customers are surprised to find that they have the power to stay away from debt forever; it just takes some discipline and additional insight.  Read the following four tips to help develop your own debt management plan.

–          Credit card companies prey on Americans because we often have a difficult time living in accord with our incomes or financial means.  Many people can benefit from following a budget.  Assess your total monthly income and then make a spreadsheet featuring your daily to weekly expenses.  You’ll easily see where and how you go over your limits.

–          Many people are attracted to credit cards because of the ‘get now, pay later’ mentality.  It is very easy to reward yourself with something you desire when toting a credit card with a healthy limit.  Debt management gurus urge consumers to use credit to buy items that do not depreciate in value.  Such examples are homes, real estate, businesses, etc.  In short, these items are making you money, so the purchase itself is helping you repay the debt used to buy it initially.

–          Do you really make a conscious decision to save?  Many people have the intentions of saving, but find in retrospect that they have not done a very good job.  One of the best debt management solutions is to build an emergency fund.  This can be about three to six months worth of wages.  Such a nest egg will ensure you have funds that can be leveraged in an emergency rather than credit cards or other debt-creating entities.

–          Know when to get help.  Some people wait a long time before seeking debt management solutions because they are ashamed, think they can handle it themselves, etc.  If you were sick wouldn’t you go to a doctor?  Most would say yes because the doctor is the professional.  Debt management should be no different; let people with experience and the knowledge to improve your situation help you get out of your current, financial bind.