subject: With Debt Management Plans You Can Solve Any Financial Strife [print this page] Life is full of unexpected, and often nasty, surprises. Just when you think you are getting ahead, it always seems like something will come along to knock you back down a peg or two. And so it goes. These minor to major catastrophes can certainly cause discomfort in your quality of life, but they do not have to rule supreme. With proper management plans, you can find your way out of the quicksand and solve most any financial problem. Problems such as:
Credit cards. With interest rates ranging from 10-20% or more, you would have to be crazy to simply make the minimum payment and nothing more every month. That's how people stay in trouble. The key is to determine what your budget can afford, and make your payments on time, every time. Credit card expenses differ from most other forms of debt, because they seem to be the kind you have the most control over. Nevertheless, when obligations pile up, it can be very tempting to turn to the card for help. But keep those interest rates in mind as you chisel away at the looming payoff.
Medical or dental bills. You can't always control what happens with your teeth and your health. Who knows when a kid will need braces, or you will develop diabetes? Both cases send your rates soaring. And then, of course, there are the deductibles! It's important to have patience and to stick with your game plan for paying these back. But in order to do so, you must first devise one. Take inventory of what you owe. Always pay more than the minimum, but keep it in control of your monthly budget. Don't fall into the trap of throwing every spare dime you can at the problem. You can get burned out easily, and go on spending binges if you're not careful!
Small business or personal loans. Buying a boat, or starting a business? Those loans will need to be paid back. Usually, you have to get them approved through a bank or financial institution, so do your very best to hit payments on or before the due date, and these will never become a problem. If your budget is too tight for you to be able to live with, then think twice about entering into the loan in the first place.
Accidents and insurance hikes. Fender benders or collisions can send your rates soaring. Debt management plans can help you balance the changes.
Home or auto repair. Damaging stores or careless drivers can also negatively affect your life. Try to plan for the unexpected every month with your financial planning.
You can't always control the things that happen to you, but you can control how you spend your money. Be reasonable, don't overextend, and always have a plan.
