How to manage your Debt? Tips and Tricks

For some managing debt can be overwhelming and that's really unfortunate because it can be a simple process if you get back to basics, and we mean the basics.

To get back to basics you need to look at where your money is going and cut out all the extras... the lattes, the cable T.V., the housekeeper, etc. If you're unsure what to cut out of your expenses, then think of your basic needs such as a roof over your head, food, transportation. If you have debt and you're paying for anything more than these basics, you need to cut some expenses.

Once you get back to basics life itself gets easier, but first, you'll want to cut up those credit cards. Then set a budget based on your basic monthly expenses and be sure to start paying everything with cash. Then you can start attacking your debt with the money you're now saving in your trimmed up budget.

Now for the debt part, look at your bills, pick the one with the lowest balance and start paying it off (include this amount in your monthly budget). Once that's paid, start paying on the next one with the second highest balance, and so on until all of your bills are paid off.

One more thing to include in your monthly budget, you can do this now, or after your bills are paid off, but sooner is always better. Calculate three to six months of living expenses and start saving towards this amount every month. This cushion of cash or emergency stash will keep you from using credit cards in case the car breaks down, the roof leak, or whatever emergency pops up.

More important than anything else when dealing with debt is to change one's mindset. In order to truly get out and stay out of debt one needs to change their mindset in life and realize that buying and obtaining 'things' doesn't bring happiness. A paid off car and money in the bank brings true peace of mind and happiness.

For more tips see our section Debt Help and Money Tips.

We also highlight some external resource we have found very interesting:

Debt Management Tips from Lifeorganizeit.com - the site contains many guides focus on self organization and Savingtips.info from Hugh McCourt wich provide useful advice on saving money.

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