Does debt management mean digging yourself out of a hole? Definitely not. Debt management is something that all of us should do. It means budgeting ourselves so that we avoid taking on more debt than we can reasonably handle.
Almost all of us have debt. If you have a car payment, a mortgage or any credit card bills you have debt. However, if are paying more than the minimum payments on your house and your cars and you are paying your credit card balances in full at the end of every month you are managing your debt well. If you do not fall into that category, how can you turn things around?
A Few Helpful Hints
– Be sure that before you accept a loan you have checked around to be sure that you are being offered a good interest rate. If a lower rate is available elsewhere go with that. Once you have accepted a loan pay as much as you can toward the loan each month.
* Shop around for credit cards as well. They are not all created equal. Some have higher interest rates than others, and some charge annual fees while others do not. If possible, get a card that offers cash back on purchases.
– Avoid falling into the trap of dozens of credit cards. You don't need a credit card for every store you shop in. Really if you have more than 2 cards you probably have too many.
– Don't draw cash off your credit card if you can avoid it. There may be times when this is necessary because of some unexpected situation. If that happens be sure to pay that off as soon as you can.
Are you Already Buried in Debt?
Be aware of your financial situation and don't let overwhelming debt sneak up on you. So many people feel that they have a good handle on things and by the time they realize that they have lost control they find themselves buried. Be conscience at all times of your financial situation and your level of debt.
