Managing Your Debt

Through no fault of our own many of us are facing difficult times financially. Managing your debt is more important now than ever it was with global recession biting hard and no signs of improvement for the foreseeable future. Making use of the range of credit facilities such as credit cards, store purchases, car loans and so on seems the right thing to do to enable you to get the extras you want to enjoy a better lifestyle when times are good and you have the necessary income to support the debt.

It becomes a totally different and worrying story when more people find themselves out of work, overtime cut, salaries and wages frozen and yet the price of utilities, gas and so on continue to rise. Although you may take the responsibility of money management very seriously, if your current credit situation is not as good as it could be you need to think again how you are managing your debt. The causes of bad debt may not be all entirely down to you but the responsibility of the debt is and it is vital that you do not spend or overspend going into further debt.

So how do you get managing your debt back on track?

The first point has been covered, simply do not overspend. It is relatively easy to calculate the amount of liquid cash you have each month by subtracting all of your fixed and variable expenses from your total net income. As long as you do not spend any more than that balance you won’t overspend and that’s good. However, it won’t reduce your debt. With some will power and determination it would much more effective not to spend. Well let’s be realistic. You will still want to enjoy yourself and why not. So think about not spending a certain percentage or actual amount and use that to pay off part of your debt.

Multiple Credit Cards

If you are not a circus performer stop juggling. The only ones ever to benefit from paying one credit card off with another are the credit card companies. They will love you forever. Transfer the balances to one or two that have the lowest interest rates and then destroy the others. Your job now is to get the balances as low as you possibly can if not quite to zero. It will take determination but why pay these companies all that money. More determination and will power will be needed to stop or limit the number of new purchases you make.

Cash On Credit Cards

This really does need to be an emergency situation. If you take cash advances using your credit card on a regular basis the huge interest rates charged by the credit card companies will certainly take you further into debt making any efforts you have made in managing your debt seem insignificant. If haven’t been able to reduce your debt this practice is definitely going to make things a lot worse. Emergencies happen and credit card cash advances are a convenient solution. Just be able to clear the debt as soon as possible.

Store Cards

Destroy all of them. The interest rates charged on these cards is astronomical. Pay all your credit card bills on time and, if possible, for the full amount. Achieving this every month means you will incur no additional or ongoing debt. If you cannot pay the full amount for whatever reason, you must make every effort to pay what you can on time minimizing further interest charges.

The same applies to all your outstanding monthly credit bills. Even if you have to go without other things, keep paying off as much of your debt as possible. This will help you maintain a good positive credit rating as well as helping you sleep at night. When times get tough and you need a Quick and Easy Loan or Cash Advance, Visit , where Money really does grow on trees!
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