Tips and tricks of effective debt management

Today one of the biggest problems, the youth of our country faces is that of excessive debt on their heads. The luxuries and demands have increased and so have the prices. But how much can a newly employed person really afford? To their rescue come the credit cards and other credit options, which make things, appear manageable in the short term but result in a much larger debt circle in the long run.

If you're in this situation, and have realized the same, here are few ways you can manage this debt:

1. Recognize your debt as a consolidated sum: Most of us have multiple credit cards, and hence multiple creditors. Without realizing, how much our total debt has gone up to, we end up focusing on each credit card. Instead, one should always look at the amount of money he owes to his creditors as a total consolidated amount. This can help you realize it when your debt starts going out of hands and you can probably try to prevent yourself from spending more and increasing further.
2. Debit cards: if you think it's just not possible for you to stop charging it to your card instead of going through the trouble of carrying cash, here is a simple solution. Start charging it to your debit card. This way, the amount is directly deducted from your bank account and hence, there is no credit bill you have to pay at the end of the month. Most of the banks in the country provide this for free and also give you the convenience of using your ATM card as the debit card.
3. Using cheaper services: with internet and technology, there are millions of websites you can access by just one click. Even though this makes it easier for you to buy, you may end up purchasing way too much, given the convenience and charging it to your credit card. In such cases, it is always advisable to browse thoroughly for the cheaper services and when done, charge it to your debit card.

For example, itcash.com, one of the most popular online recharge website that helps you makes any kind of bill payment or recharge in just a few clicks. This website also provides round the year discounts and attractive voucher codes that can be used to avail the best possible discounts.

The Kiran Mehta is a fresh graduate from India's top MBA University and is a regular user of itzcash.com for online payment of bill.

Jenni Sands is a hospitality expert and advises visitors on Dubai's accommodation options and local culture.