Debt Management Guidelines: How to Get Your Debt in Order and When to Get Help

Most families have a small debt to deal with. Unfortunately, losing control of finances is not uncommon. If you find yourself in some kind of financial trouble, it is time to develop a debt management strategy. How can you pay your debts? How should you prioritize them? Should you consider consolidation? Or even bankruptcy?

Here are some tips for establishing better debt management:

• Make a list of all your debts and how much each owes. Organization is essential. In the list, the information should include the total amount of the debt, the name of the creditor, the minimum monthly payment and the due date. Having everything on the list in front of you allows you to see the big picture.

• Prioritize your debts. Obviously, things like home loans, child support, auto loans, and late payments from the IRS should come first, as these types of debts have the biggest consequences in the event that you are unable to pay. As for credit cards, pay the ones with the highest interest rate first, as that rate will keep going higher and higher if you fall behind.

• Once you’ve prioritized your debts, make the necessary sacrifices to pay off at least the minimum amount. While paying only the minimum will not reduce debt much, if anything, it will prevent it from increasing.

More tips for debt management

• Try to save as much money as you can. Do you really need to go out for lunch every day? Do you really have to take the car to a place that is within walking distance? Are there any entertainment expenses you can cut back, like a subscription to Hulu or Netflix? Do you really need all the channels on your TV? Even if you only cancel entertainments for a couple of months, it can really help you catch up on debt.

• Recognize the signs that you need help. Debt management is not always something you can do on your own. There are management and consolidation companies that will help you keep your finances in order. You also have to consider bankruptcy if things really get out of hand. If you simply find that you have too much debt and too little money to meet your monthly payments, it’s time to seek professional help.

There are many debt management services, and not all of them are reliable. One company to consider is CuraDebt. It has been around for over 17 years and has attracted clients across the country. This company is in “good standing” with the Online Business Office. You may even be able to use a CuraDebt promo code, depending on the type of service you need.