Sunday, December 21, 2008

5 guidelines to manage your debts:

Due to some reasons you borrowed somuch debt in our life. So, it will create a huge debt which you bound to pay but you don't have that much of capability. Then you start making excuses about why you're in debt. There is no need to blame the credit card companies or your parents. Put that energy into reducing your debt.


Now you need to take some steps to overcome this debt problems. 1st you share your problems with your family members or with your close friends, If you are unable to share with them go to any debt consolidation company. They mey help you in a very scientific way.


At the very beginning you just estimate your total debt. After calculation you have to go for some important steps. Here are some points below which you need to keep in your mind....


1.Never avoid the "Budget" word:


The best way to start reducing debt is to set up a budget. Because it is very important to know where your money goes. You just add up your income & subtract your expenses, then go for budget planning. But be honest about you.


2. You need to make your plan:


Now you just use your budget to help you plan your debt-reduction strategy. Make a list of all your debts from the highest interest rate to the lowest. Then try to go for high interest debts. Your budget will help you in this matter.


3. In the matter of debt consolidation:


If you are going to repay your all debts after taking a huge loan from the debt consolidation company. Please read all the terms & conditions. After that just think it is helpful for you or not.


4. Face up to your caredit cards:


When you will become debt free then also manage your budget to avoid any same problems. Use your credit cards if there is an emergency. And a low interest credit cards with maximum facility.


5. If the collectors will knock you:


You need to keep in your mind that what rules & regulations debt collectors suppose to follow. If they are not following that treat them in a very correct way.


I hope all the above guidelines will help you to managing your debts.

7 comments:

Andrew said...

very good tips to management the debt but i think its is hard to get the best debt relief services

Dune said...

6)Work to repair your credit
As you work to get your finances in order, make regular checks on your credit report to be sure that a creditor doesn't say something about you that's inaccurate or out of context.

7)Talk to a debt counselor
There are several nonprofit agencies devoted to helping people cope with an overload of debt. They're generally funded by creditors, so don't expect them to advocate bankruptcy, but they're basically on your side.

Low Cost Insurance said...

debt relief If wish our government encouraged more people to be frugal and save. Our nation would be healthier and more successful. Even our schools should be teaching kids this little fact.

Low Cost Insurance said...

debt negotiation Families should also be encouraging their children to stay out of debt, other than a home and transportation. You cannot avoid owning on those. Prior generations were much better at managing money.

raynz said...

Very informative tips. Budgeting is really important if we want to get out of debt. May I add also that if possible, we must find a way to increase income in order to pay off smaller loans.

Carlod said...

Thanks for your Information really helpful
Debt Consolidation Plan

Frank Polenose said...

Great information - good tips.
Frank @ Secured Loans and Loans