subject: How Do I Manage Debt to Get it Under Control [print this page] The question of "how do I manage debt?" is rather frequent these days. In a tight economy debt can easily get out of hand and getting it back under control is tough. You will discover a variety of approaches to manage your debt depending on how much debt you might have, how much income you might have, what other living costs that you are responsible for and what you are willing to do. In some cases if you happen to be in over your head it might be time to speak to a financial consultant about debt consolidation, but you will discover steps it is possible to take on your own to begin with.
How Much Debt Do You have?
The first step is to face how much debt you may have in black and white. Write it out. Interest included. How much are you paying a calendar month on loans and credit cards? Okay, that wasn't too too bad was it? How Much Income do You have? Do you have a stable income? Does it fluctuate from pay check to pay check, season to season? What are your month to month living costs. Items including rent, gas, utilities and groceries. The volume it takes you to live every thirty day period, preserve that as a separate volume. Average it out, look at last year's tax return if that will help, to see what it is possible to anticipate to have on hand monthly to deal with your bills.
How to Manage the Debt You Have.
Its a rather simple formula; income minus living costs equals "disposable" income. How you manage your disposable income is how you manage your debt. Look at the interest rates you might have on your loans or credit cards. Is one quite high? Can you roll the total over to a lower interest? Is it worth while to try and consolidate those loans so you only have one payment? Take a look at your living costs. What can you do without? Are you able to do without all of the bells and whistles on your phone or cable TV plan? How much much more a thirty day period would that give you to put toward your debt?
Look at your income. Is there a strategy to increase it? Are you able to pick up far more hours or a second job for short term? When you ask "how do I manage debt?" you also must ask what you're willing to do to have it under control.
How Do I Manage Debt to Get it Under Control
By: Leonard N Williams
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