How to Manage Your Debt

Know How Much Debt You Owe

Knowing how much you owe will help you to manage your payments and put your total debt into perspective. Make a list of all your creditors with the total amount of debt and your monthly payment plan, and update it every time you make payments.

Pay Your Monthly Instalments on Time

You can’t afford to let debt accumulate from late payments, it will just make managing your debt harder and also give you a low credit rating. Set reminders on your calendar so you don’t forget to make your monthly payments.

Make the Minimum Payment

Making the minimum payment allowed won’t help you to get rid of your debt quickly, but it with stop your debt from getting any bigger. Even better, if you can afford to make a payment higher than the minimum payment required, do so.

Learn How To Manage Your Debt

Prioritise Your Debts

Chances are your credit card is high priority for debt payment. Credit cards carry more interest, and are therefore the most important as they are costing you the most money. Prioritise your list of debts in order you want to pay them off.

Keep Your Other Accounts in Good Order

Do not sacrifice your accounts with a positive balance for the accounts with debt. This is a common mistake and could trash your credit rating.

Keep an Emergency Fund

Putting away money for a rainy day is an excellent practice and should be exercised as often as possible. When you have an emergency cash float to fall back on, it is easier to pay off your debts if something unforeseen prevents you from doing so.

Keep to a Monthly Budget

Devise a monthly budget and stick to it. This will ensure that you have planned for and can cover all your expenses. If you plan early enough, action can be taken if you see that there may be unforeseen expenses.

Ask For Help

Sometimes debt can be crippling, and you need to be able to tell when you may need some help. Debt relief companies such as credit counselling may be able to help. As a last resort, you may also opt for debt consolidation, debt settlement, or bankruptcy.