I know what you think when you hear the phrase "debt management" all sorts of things creep into the mind, debt elimination scams, debt management scams and a those pictures of those cheesy people with unpaid bills in their hands.
Debt has become a huge part of our society with the US national debt at and counting for June 2010.
I know what you think when you hear the phrase "debt management" all sorts of things creep into the mind, debt elimination scams, debt management scams and a those pictures of those cheesy people with unpaid bills in their hands.
Debt has become a huge part of our society with the US national debt at $13,038,877,263,966.
78 and counting for June 2010.
We need to have debt management if not for us, for our children at least.
We need to understand that we can no longer afford to buy on our credit cards and think about paying the debt later.
Is just does not work like that.
Our fore fathers and great (maybe great great) grandparents never had such luxuries and they worked themselves down to the bone to buy their so called luxuries and to send your parents to collage.
We need to fall out of love with our credit card and "buy now think about later" policy.
Here are a few simple tips for debt management.
Use a debit card Yes-I said a debit card! A debit card allows you to spend what you have.
It works in just the same way as a visa card works, just you have to actually have the money in your bank account for the purchase to be made.
Cut up your credit cards Those little plastic daemons got you and our country into trouble in the first place.
They serve as a threat to your finances and you will feel the sting when you come to pay those off.
One missed or late payment? Oh dear your interest rate just jumped up to 33% or something insane.
Credit cards are made to make money, they are not made to give you money.
Cut them up, and starting paying of off the balance, you will feel a sense of achievement and save yourself 1000s of dollars.
Save your money It feels so good to have savings.
You will feel a great deal of achievement of having a safety net in your saving account.
It will give you more confidence to move forward in many respects, it will also give you greater control when you come to pay off your debts.
Draw up a real debt management plan Write down a list of every debt you owe.
Next to each debt enter a date you would expect that date to be paid off by.
Then set yourself a debt free day and month, for example; I will debt free in July 2015.
This is a great motivational practice that will really give you a push.