subject: Debt Management – Tips To Confront And Manage Your Debts Effectively [print this page] If you are in debt, and feel like you aren't really making the progress you'd like to be making when it comes to repaying it, what could you do?
Create a budget
The first thing you should consider doing is creating a budget. To create a budget, you should simply write down all the money you earn each month, and all the money you spend each month.
This will give you a clear overview of what's going on with your money. Now you have these two totals, you should subtract your total expenditure from your total income - which will leave you with your disposable income.
Your disposable income is basically the money you will have been using to repay your unsecured debts each month. It is also the money you can use for savings and non-essential spending if you have any spare.
Are you wasting your disposable income on things you don't need?
Now you can see your disposable income, you need to have a look if you are spending as much of it as possible on your unsecured debts.
In other words, are you wasting your disposable income on things you don't actually need? If you are, cut back on this spending and use the money to service your debts instead - and you'll clear them faster than you thought you would.
Basically, overpay if you can
If you find that after making the required payments towards your debts each month, you are left with some spare money, consider using this to overpay your debts - as this will allow you to become debt free sooner.
Don't take on any more debt unless absolutely necessary
While repaying your debts, you shouldn't take on any further debt unless it is absolutely necessary.
In other words, put your credit cards away and only spend what you have budgeted for.
If it helps, plan what you need to buy each month, figure out how much this will cost you and withdraw this from your bank. If you spend using cash rather than your card, you can't actually 'overspend' and take on debt.
Debt Management Tips To Confront And Manage Your Debts Effectively
