Most people at one time or another will have a debt of some sort.
A debt is a liability that you owe to someone else and most people will not be 100% debt free but there is a way that you can manage your debt more efficiently. Depending on the depth of your debt you have a few options in how to manage it. Either by yourself, with professional help or if it has gone too far – to start bankruptcy proceedings.
To avoid getting that far here are some points to follow to better manage your debt:
- Don’t get further into debt.
Stop using your credit cards and watch your other debts such as your car hire purchase payments or your mortgage costs.
- Manage your cash.
Start monitoring when your cash comes in and where it is going. By keeping a note of this you will see your spending habits and where money is being frittered away. You can use a pad or an excel spreadsheet or an accounting software program that will analyse your spending patterns. Total should be calculated at the end of each day, week and month.
- Implement a plan.
Sit down and write goals on what you want to achieve and set a budget and plan that will enable you to achieve these goals.
- Be patient.
Don’t expect it to happen overnight. Making small savings can make a huge difference over the long term. Stick to your plan.
- Save.
Start saving every little bit of cash that is left over. You will be surprised at how it can build up.
© 2005 StartRunGrow