Debt Management Tips for Grown-ups
Debt is a disease that affects almost everyone. The good news about it is you can manage it. Here’s how:
1. A credit card is a convenient access to debt. Although you could easily purchase or borrow money through it, the effects can be staggering. When you have one, make sure that you are the master of the credit card and not otherwise. You know what I mean.
2. In paying your debts, make sure to prioritize the one that has the highest interest charge.
3. Pay in cash. Avoid debt as you would a plague. If you really have to incur debt, be sure that it is to purchase your long-dreamed of home or, say, invest on insurance. Never incur debt for future liabilities (a.k.a. assets that undergo depreciation)
4. Make the credit counselor your best friend. They have the knowledge to get you out of debt legally or to consolidate your numerous debts.
5. Save, save, save and create an emergency fund. Even if you are neck-deep in debt, be sure to allot some money for savings, most specially for emergencies. Remember that unplanned expenses such as hospitalization could drive you incur more debt if you don’t have funds for it. The safest amount of savings is 3-months’ worth of your salary. Invest on a retirement plan. This will ensure that your ‘golden years’ would be spent in leisure rather than worrying.
6. Do online payments. This will be an assurance that you can pay your debts on time, every time (yeah, no excuses such as long queues!).
via MoneyInstructor
image from shoosmiths-online-debt-recovery.co.uk
Tags: debt-consolidation, debt-management, financial-managementRelated Stories
POSTED IN: Doing it Yourself, Finances, General
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