Being in debt can be an intimidating predicament, and many people tend to let it get the better of them. This is not necessary, however, because, no matter the size of the debt, a systematic, step-by-step approach can help you gain control of it. Follow these five easy steps to start managing your debt.
Know Exactly Whom You Owe – And How Much
Sit down and list all your debts, complete with outstanding amounts for each creditor, as well as due dates and monthly payment amounts. Total up the list to obtain the full amount you owe. Refer to this list periodically and adjust it as you service your debts. Better yet, use an app like CalendarBudget that can keep track of it all for you.
Pay Your Bills on Time
Being sure to pay all your debts on time will make you feel empowered over them – even if the amounts are small and incremental. Never forget a payment date. Pay every debt as it falls due. With CalendarBudget, you don’t have to remember the due dates. The app will remind you every time a payment is due. Being in control has never been so easy!
Always Pay – Even if Only the Minimum
Don’t let one debt lapse because you feel it is a lower priority. Always make a payment, even if it’s only the minimum.
Prioritize Your Debts – Decide Which Ones to Pay off First
Credit cards tend to be a top priority when it comes to payment because they have higher interest rates than other debts. Be sure to pay them off quickly. Prioritize debts according to their total cost. The most expensive ones over the long run should be paid off first.
Plan Your Expenses and Work Your Debts Into Your Monthly Budget
You may have debts to pay but you still have to live. Spread your income so that you can pay your debts, cover your essential expenses, have some entertainment money, and save a little each month.