Effective debt management is key to avoiding serious financial strain. Almost everybody has some level of debt; it is how you manage your debt that sets a healthy financial state apart from an unhealthy one.
Here Are Some Helpful Tips to Get You Started on Effectively Managing Your Debt.
- Make a list of all your current outstanding debt. Take note of the amounts and applicable interest rates.
- Keep track of your spending. This will allow you to identify where your money is being spent, and will help you identify areas where unnecessary spending can be reduced.
- Create a monthly budget. Stick to this budget, or if necessary make changes to the budget, keeping in mind the difference between a need and a want.
- Start paying back your debt. Your budget will give you an indication of how much money is available each month to put towards your outstanding debt. Try to pay higher interest rate loans, such as credit card debt, first.
- If possible, increase your income by getting a second job or asking for a promotion. Use this extra income to pay existing debt, but be aware of the possible income tax consequences if you have multiple sources of income.
By employing these steps, you will begin to effectively manage your debt and avoid further financial strain.
For more detailed information on debt management and any of our other services, or to book a free initial consultation, please contact us at 204-944-0187 (toll free: 1-800-263-0070). If you would prefer, you can complete our First Step form.