Debt Management

Easy Debt Management: Living Within Your Means

We know that we have serious problems when it comes to credit, so how do we learn the necessary art of debt management? One of the first things we must learn to do is live within our means. Another imperative is to stop charging everything we buy. It's sad to note that many have dug themselves such a deep hole that they actually have to use one credit card to make a payment on another. Some of the worst habits are using cards to charge fast food or other restaurant meals and even charging our groceries. People who lived through the very difficult time of the Depression learned how to live frugally. Unfortunately, too many of us don't heed their good advice which usually goes something like, "If you don't have the cash for it, you don't need it".

The Decision

Consumer debt from credit card use is at an all time high of $1.7 trillion. Looks like most of us could learn from advice on debt management. The first step in learning how to live on what you earn is to make a solid decision to pay off all those cards. It won't be easy and it will take time, but it will be so nice to actually have cash in your pocket and savings account that you'll be glad you did. Making that decision is a big part of the battle and staying committed is as well.

Control Your Spending

Obviously at the beginning of your debt management program, you will need to cut expenses. Start by making a budget. List all the things you have to pay such as your mortgage, car loan, insurance policies, and other essentials. Then look at how much extra you're spending every month. If you write down every dime you pay out for a month, you'll find a lot of areas that you could trim. Use the money that you save to start paying more than the minimum due on those cards. If you charge each month and only cover the interest you just won't ever get ahead. Learn how to have fun without spending a fortune. For example if you love going to movies, start renting them and make it a family party. Make some popcorn and you can enjoy the movie in the comfort of you own home.

Attitude

Probably the most important part of debt management is keeping a positive attitude. At the beginning instead of feeling like your giving things up, look at the freedom you'll have when you're out of debt. You'll be able to enjoy life and you won't be receiving all those nasty bills each month.