It's Possible to Get Out of Debt with a Little Money Management

Laurie Childree By Laurie Childree, 25th Jun 2010 | Follow this author | RSS Feed
Posted in Wikinut>Money>Debt

Debt is difficult to avoid and more difficult to get out of. It's possible to work your way out of debt all you have to do is learn some money management skills.

Managing Money to Help You Out of Debt

Debt can sneak up on you. One day you’ve got a great line of credit and are gliding along without any worries. Then one day something happens that throws you into a tail spin. You are now in debt, unsure how to manage your money to get out of it. There are some things that you can do to make getting out of the bind that you are in less stressful.

Know Your Debts

Make a list of all your debts including the payments and interest rates in addition to the amount that you currently owe. When you have them all in front of you will be able to see which ones have the largest payoff amount and highest interest rates. Knowing all of this will help you to make a plan about the way that you go about paying them off. The ones with the largest balances don’t necessarily take priority; the ones with the highest interest rates might though.

Can You Settle?

While it may not be ideal for your situation some companies will settle for less than the total. If you can manage to pay off even one debt this way it’ll be less stress for you.

Cut Expenses

Whether you want to admit it or not there are expenses that you don’t have to have in your budget. When it comes to getting out of debt every penny counts a great deal and everything that you don’t need could be eliminated. The money can be spent on paying what you owe. Cable, Internet, and the gym membership that you never use can be eliminated. The money that you would normally spend on these can be applied to your debts.

Stay Home

Managing your money is easier if you stay home. When you leave the house you’re more likely to spend money whether you have it or not. Instead of going out try reading a book or watching a movie.

Double the Payments

Once you have managed to cut expenses and prioritized start paying double on the debt that you want to pay off first. The more you pay on a debt at once the less time that it’ll take you to pay it off. If you have managed to keep some money after the rest of the bills are paid and your needs are met you can add additional payments to the rest of the debts.

Make a plan for saving money in order to make managing the attempts to get out of debt easier. There is no need to do without everything when you are trying to get back on your feet. You have to prioritize; some things can be done without long enough to achieve your goals.

Tags

Debt Relief, Money Management

Meet the author

author avatar Laurie Childree
I'm the single mother of an autistic child a published author. I have a wide range of topics that interest me including personal finance, writing, self employment and creative writing.

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