Is your credit card debt taking a hold of your life? Are you recently feeling that your money is controlling you instead of you controlling your money? If answered yes, you must be drowning under a crushing debt burden and also wondering about the steps that you can take in order to avoid filing bankruptcy in the long run. There are experts who provide debt management advice but you need to make sure you get help from a trustworthy debt consultant and you have to cross-check their authenticity. Here is some free debt management advice that you might follow in order to help yourself fight against debt.
1. Start following a budget from today:
Are you already following a budget? If yes, carry on with this habit and if no, you should immediately promise yourself to follow a budget from today. A budget helps you keep a firm balance between what you earn and what you spend. If you have to live without debt, your income should always be way more than your expenses. Create a frugal budget and follow it throughout the month so that you can stay out of debt in the near future.
2. Save money aggressively:
There’s nothing more favorable than saving money and if you still haven’t incorporated this habit, it’s high time you do so. Without an emergency fund you won’t be able to help yourself repay debt with money of your own. You should save at least 10% of what you earn in a month in a high yield savings account so that you have enough to take resort to during an urgent situation.
3. Curb your credit card usage:
You should also curb your credit card usage if you want to stay out of debt. Carry cash within your wallet and let go of the habit of resorting to credit for purchasing anything that you can’t afford with cash. The more you use your cards, the more you will drown in debt and therefore you have to ensure leading a financially disciplined life.
4. Negotiate with your creditors:
You may also negotiate with your creditors in order to let them know about the financial hardship that you’re going through. They can help you with an alternative debt repayment plan through which you can easily get back a firm grip on your personal finances.
5. Get help from debt management firms:
You can also get help from the debt management firms where the credit counselors will negotiate with your creditors and convince them to lower the interest rates on the accounts. You just have to make a single monthly payment to the credit counseling agency and this way you can get out of debt.
Therefore, when you’re wondering about the ways in which you can opt for debt management, take into account the above mentioned steps. Manage your finances in order to pay on time so that missed payments don’t hurt your credit score.