Managing Your Personal Debt

The Path To Managing Your Personal Debt Headache!

The path to managing your personal debt headache will be fraught with bumps in the road and hurdles that are hard to leap over. Debts from the overuse of credit cards will top the list of why people continue to struggle and never seem to learn the lesson of taking time to manage their debt. Credit card debt is the dagger through the heart for most folks. It always seems to have a way to spiral out of control. Yet, the worst thing you can do is get on the “wishing and hoping” path that it will suddenly disappear by itself. Actually, making poor financial decisions can prevent you from getting a lot of things; not just a home or new car.

If you seriously want to get off that “debt boat to nowhere”, here are a few life preservers that will fit nicely to insure you reach safety as soon as possible.

handling debt

#1 – Stop hiding! People in debt often hide their heads in the sand, or are simply unaware of how to deal with their debt problem.
#2 – Know how much you owe! Gather up all your credit cards and other personal loan debt and add the outstanding amounts you owe. While doing this you might be wise to locate what the interest rate you’re paying on those debts is; but you might want to sit down when you read those rates and remember where you keep the headache tablets.
#3 – Know how much debt you owe.
#4 – Know your total household expense.
#5 – Know how much you can safely pay each month.

Then comes the choices of who to pay first? Well, the rule of thumb is you pay your credit card debt and any small loans first before you attack any student loans, home loans and large personal loans. If you can, pay the highest amount you can on those higher rate cards

Note: Call creditors and negotiate and consolidate your interest rates down to a less expensive rate. This may work for you, but you won’t know if you don’t try.