Easy Debt Management
Carefully examine your budget. Prioritize all of your bills in the order that you are going to pay them. Focus on your basic needs first: housing, food, utilities (this does not include cable) and possibly your car.
Prioritize your spending. If you are struggling to pay your bills, you must cut out spending money on entertainment, eating out, vacations and spending money on anything that is not a NEED.
Save Money on Groceries. Definitely cut back on your grocery bill. If you can not afford to pay your bills you should not be buying expensive food that you do not need.
Pay Down Debt
Paying the minimum monthly payment on your credit card bills could take you forever to rid yourself of the debt, not to mention how much you will end up paying in interest.
You are only prolonging the agony and causing yourself stress.
Examine your monthly expenses and determine where you can find the money to pay more than the minimum monthly payments.
Paying bills online allows you to bank 24 hours a day, 7 days a week, pay your bill on time and you can avoid bank lines. Banking online also lets you monitor your spending and keep an eye on your balances.
Consolidate Your Debt
If you have a large amount of debt, combining it into one lump sum with one payment per month is a good option. If done correctly, debt consolidation could help you manage your finance and decrease your debt stress level.
- Do not borrow any more when you are under a debt management plan.
- Stop using your credit cards.
- Restrict your spending.
- Focus on saving money.
- Focus on your goal of payments.
- Try to get an additional part time job to help pay off debt.
- Your mortgage should be a priority, you do not want to lose your home.
- If you can not afford to keep your house, consider selling it - that may relieve a lot of your financial burden.
- If you are paying for a car and can not pay your other bills, consider selling the car.
- If you can not pay your car loan, contact the bank for assistance before it is repossessed.
Work with your creditors (do not avoid them)
Before you fall behind in paying your bills contact your creditors and explain the situation so that you can work together to find a solution.
Show them your budget and discuss how and when you intend to pay them back. Ask about temporarily lowering or suspending your payments and put everything in writing because these steps may not save you from getting bad credit, but it shows that you are making an effort, and it may help you if you end up in court.