We can all be honest be honest with ourselves and admit that we have some kind of debt looming over our heads. It’s been there probably for years and we are at our wits end on what to do about it. It could be a student loan that you never got the chance to even make a payment on. It may be credit cards where you were seriously irresponsible in buying everything you felt you deserved. Whatever the case, you have to attack your debt and management like a pro or at least learn how to. Here are some ways to consider how you will successfully handle your debt and manage it until it is all gone.
Where to start?
You might want to drill down on the smallest bill and work your way up to the largest one that is killing your credit. Take the time to either find all of the paperwork to these bills and start organizing them in terms of what you own. If you are computer savvy, then hop on the laptop or the desktop to build a spreadsheet. Don’t get discouraged if you have a lot of debt to organize or list. You will be happy in the end when all bills are either written down or locked into an organized spreadsheet.
How much should I pay?
You now need to figure out how much you are going to pay on each bill, if not all of them. You could spread out payments evenly to satisfy the monthly payment for each. It really comes down to what you can afford to give to your bills when it comes to making a payment. This is one of the biggest things that people struggle with and why they might not pay their bills on time. An emergency in the family or a unexpected doctor’s visit takes away their money to put down on a bill that keeps growing bigger. Look at your income and see how much you can put towards your smallest bill and work from there.
A call from a collector for a debt is not only embarrassing it can turn into a living nightmare. The best way to deal with debt you owe to a business is by knowing your rights as the one carrying the debt. This means you will not stand for any calls that are illegal according to the times they can call you. They can’t call at midnight screaming about where is the last payment or that you are going to jail. Debt management is hard enough without you dealing with someone from the collection company harassing you all week long. Make note of any unprofessional behavior and report it to the consumer agencies. You owe debt and that doesn’t mean you are some hardened criminal on the run. Call your collectors to see if you can work out a deal. Maybe they will let you change your payment date to be closer to your weekly or monthly deposit for your salary.
Stop the debt
One thing you can practice is stop building debt in the first place. This can be hard for some people to accept, but it’s a reality that we all like to shop. Some people go overboard and shop to where they don’t have a care in the world and know they can’t afford the credit card bill coming in the mail. Start analyzing the things you are buying and ask yourself why do you need T-shirts in all different colors at $35 a piece. You might find your spending is ridiculous and you need to pull yourself back in for a reality check. If you can learn to stop racking up debt every where you go, you’ll be on the road to managing your debt like a pro. We don’t realize it but our debt can tell a story. One being that you might be addicted to shopping which is actually a real thing. Many people have gone to therapy to discuss their issues of uncontrollable spending that is driving their bills through the roof.
Try being a lot more disciplined with your debt. The next time you are in the store and someone tries to upgrade you at a cost, simply say no. Learn to start declining any offer or so called free upgrade that will cost you in the end. You need to be consistent with your discipline and not just say no on specific products. Learn more control and that you need to start holding onto your money for other things like emergencies or something more personal. Once you can master this discipline you will have a different relationship with your bills. It will allow you to lose the fear of paying enormous bills that never seem to go down. You will feel happier in life knowing that you are not stuck in debt like the rest of the millions of people out there.
Cut the cards
With spending that is so bad, you might have to cut up your credit cards so you can’t get a hold of them to buy stuff. This seems a bit drastic, but sometimes you have to do what you need to do. This could be the best decision you ever made. It might shed some light on why you are so deep in debt and can’t see your way out of it. One should never really have more than one or two credit cards to begin with. When your entire wallet is full of cards, you are more than likely to use these instead of sticking with cash in your wallet. Try your best to be picky about what cards you want to use in the future. Turn down any card offers that you might get through the mail or in an email as well. It’s the credit card offers that can get us into the most trouble when we least expect it. Stand firm on rejecting any cards you know you won’t use or need.