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Tips For Debt Management

Let's face it, debt is a difficult subject to tackle. According to multiple sources of data, the American consumer can eliminate ALL forms of debt, including mortgage debt, in 7.5 years, provided he/she use only the money earned. However, in order for this to work, one must be committed to either pay down the debt manually, or subscribe to a debt consolidation program to reduce one's budget. The program may seem drastic, but so are the results! How badly do you really want out of debt? Follow along for some solid debt management advice.

Debt Management Preparation

Pull together your most recent six months worth of receipts (if you don't keep receipts, start doing so now). Don't bother gathering tax information (you'll be paying that no matter what) and household utilities (ditto). Be mindful of your credit card bills, and make use of their categorization (auto, grocery, food, etc). If your bills aren't categorized, categorize them yourself. Next,

you'll need to think of some ways to save money on EACH category, at a goal of 10% savings per category. This savings will become your "nest egg?of sorts under the debt management plan.

Debt Management Execution

In a spreadsheet or a piece of paper, list each bill, category, payoff amount, minimum payment, and APR.

Next, determine which bills are taking the most money away from you, and eliminate those bills first. For example, Visa bill at 18.99% interest takes precedence over the 9% auto loan. This is not to say that the auto loan should be ignored. Rather, the minimum payment should be made on the auto loan (and all other bills) while the remainder of one's "nest egg?should be applied to paying off the Visa bill. Percentages will forever rule your life if you are in debt; turn the table and rule them.

About the author:

Jeffrey Cash For more helpful information Mrquikcash.com
Written By: Jeffrey Cash

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