Most debt management programmes do what you can do yourself
. However, the main advantage to a debt management programme is that someone else does all your work. But it is possible to manage your debt yourself. There are really only a few steps involved:
Budgeting
This is as easy as creating a list of all expenses and all different forms of income. Doing this will help you see where you overspend and where you can spend less money on things you do not need.
Use this sheet to calculate how much you can spend on paying off debt each month.
Communicating with your creditors.
Creditors also bleed; theyre only human. Speak to them as soon as you realise you may not be able to make your regular payments. Also speak to them if you plan to amend your financial ways: they are more likely to be helpful when you approach them first. They might be more inclined to waive certain fees and lower your interest rate.
Question why you are in debt
Your debt problems could be merely a symptom and not the problem itself. It could be that you are unorganized, are depressed, do not have enough knowledge or have a problem with impulse control. Think back to when the debt problems had started and see whether there are any similarities to your life today.
Consolidate your debt
Consolidating your debt yourself might be more of a challenge than having someone do it for you. You could also negotiate lower settlement figures with your creditors.
Avoid getting into more debt
This is probably the most difficult step of the lot. But it is possible to make a success out of this step. Make cash your personal hero: stop living on credit. This may mean you need to save for bigger purchases rather than using credit.