Some Tips on Handling Debt

Posted by admin on October 10, 2019

Handling debt can be extremely stressful to the point that paying it off can feel overwhelming. In spite of this, it is important that you pay off your debts as there can be many negative consequences for failing to do so, least of all your own sanity. 

Here some helpful tips to help you keep on top of all your debt and how best to manage it. 

Know What You Owe and to Who 

Write down a list of all the debts that you owe and who you owe it to. It also helps if you write down the monthly payment and how much left you have to pay as well as the due date. 

It may seem tedious but there is a certain power in putting things down on paper; it makes things feel much more manageable. If writing isn’t your thing, however, you can simply put it all into a spreadsheet for perfect organisation. 

Remember to check your debt list periodically and update it as often as possible. Forgetting about it defeats the whole point of creating one! You’ll fall behind and will have to start over again.  

Manage Your Bill Payments

Late payments make it difficult to pay off debts seeing as you’ll have to pay a late fee. This is the last thing you want, especially if you have so much money going out already. Miss two payments in a row and things will only get worse for you, as your interest fee and finance charges will also increase. 

Time your payments well. Set a reminder on your phone. Make sure you set a budget so you don’t overspend. In short, do what you can to stay on top of paying all your bills on time. It’s the best way not to get bogged down in any kind of debt. 

Create a Calendar

Calendars are an extremely handy organisation tool. Whether you have a digital calendar or a traditional one mounted on the wall, they can be very useful in helping you remember what day you are supposed to make your payment. 

It’ll also help you get a bigger picture view of your outgoings, not to mention assist in tying everything in perfectly with payday. In short, calendars are a great tool and should always be utilised in debt management. 

Prioritise 

Our final tip is to make sure you prioritise your payments. This may not necessarily pay off the biggest debt first, but depending on how urgent it is, you may want to pay off some of the smaller ones to clear your collective debt overall. 

Also, some debts may have a due date which will come sooner than others. We advise putting these first on your list as you will incur penalties for failing to pay off your debt in time. Once you’ve managed to, however, the rest will fall away nicely and you’ll be able to get a better grip on your finances.

Need more tips on managing your personal finances? Visit our Cuttings Pawnbroker blog page for more guides and info on the best tactics! 

 

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