Managing Debt Wisely and Become Debt Free in No Time Part I

In our society, debt is a part of life. It helps us get an education, a car, a home, or expand our business. When debt is managed well, it’s a stepping stone that enables us to improve our lives and get things accomplished. But, if debt is not managed well, it becomes a stumbling block and hinder our progress than move us forward.

There are many different ways you can learn to manage debt wisely, pay off faster, or get out of debt if you desire to be debt-free.

Optimize your Debt – The Simplest Way to See if You Have Too Much Debt.

If you are wondering if you have too much debt, you probably do. However, the easiest way to figure out is, if more than half of your income goes to paying debts. If this is true for you, then you are quite possibly in over your head, and need to do something about this quickly. If you are using more than half of your income to pay debts and think you still have the situation under control, you may be fooling yourself. You are on the edge!

Warning! Signs:

– Difficulty paying bills on time

– Receiving collection calls or past due notices

– Living in your overdraft or line of credit

– Losing sleep worrying about debts

– Spending more than your income allows

– Not paying credit cards in full each month

– Impulsive spending due to financial worries

– Hiding spending or debts from a partner

– Allowing bills to stack up because you can’t pay them

– A decline by your financial institution to consolidate your debts

– No budget or spending plan in place

– Feelings of hopelessness that you’ll never get out of debt

If you are experiencing some of these warning signs and wondering your next steps would be, we suggest you speak with a non-profit Credit Counselor, most of them can provide you with confidential, non-judgmental coaching about your situation for free or a minimal amount of money. Non-profit Credit Counselors can lay out all options for you and allow you choose the best option. If you know that you are on the edge, you may want to consider some options:

– Approach a Financial Counselor and seek advice.

– Create a personal budget to pay-off debts – professional budgeting help and all information provided are kept     confidential.

– Creditor Approval of Debt Management Programs. Your creditors want to see you deal with your situation.

With proper planning, creditors will become receptive in giving you time to repay your debt.

 

Author: Michael Welter

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