How to manage your debts in a well manner?

Everyone with little bit of debt have to manage their debt. They have to make sure they keep up with their payment and pay it off as quickly as possible and if you have large amount of debt to be paid you need to pay it diligently and take more efforts to pay it off.

For example when I was in my graduation days, I often had financial constraint during that days. Good thing I had gotten my credit card during grad days. I used to have good credit rating. After studying a semester abroad I had taken a loan from bank I ahd taken a loan from bank to pay it off quickly. So I had drawn significant amount of credit used it to pay off balance and therefore used it responsibly.

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Following are ways in which we can manage your debt:

• Decide which debt to pay off first: decide which debts to pay off first like credit cards debts because they carry high interest rates than any other debts.

• Create a monthly bill payment calender: it is very important to create a monthly bill payment calendar as you where your money is being spend on and also you have a track on it. On your calendar, write each bill payment amount next to due date. Then fill in date of each paycheck

• Build an emergency fund in case you are out of cash: building an emergency fund is very important as it can help you pay or fall back on unwanted expenses.

• Consider cashing in life insurance: cashing un your life insurance is an important debt pay off strategy because it will give you chance to pay of lower down larger amounts of debt quickly.

• Make more money: making more money is also one of the good ways to pay off debt as quickly as possible. You should always make ways to increase your income to pay of debt as soon as possible. Whether working part-time or full time, thinking of starting to earn money for few months to apy debt as soon as possible.

• Make at least the minimum payment:if you cant afford to pay anything, atlaest try to make the minimum payment. Off course the minimum payment won’t make any real progress in paying off your debt. But it keeps your account in good standing, which avoid late fees.

• Sell items for cash: selling items for cash eg: second hand items will fetch you some cash which will help you gets ome money through which you can pay off your debt.

• Pay off collections and charge offs: you can pay on your debt as much as you can afford.when you have limited funds to paying debt focus on keeping your other accounts in good standing.

• Invest wisely: when investing in anything, invest wisely. Research on whaever you are investing and then make a budget plan oh how much you can invest. also avoid investment that require high return as these investments are very risky. Eg:penny stock and junk bonds.

• Control monthly expenses at home: controlling or minimizing the expenses is one of best ways to reduce expenses and pay off debt eg: uncessary shopping or subscriptions can lead to huge expenses monthly.

• Limit debt: limit the amount of debt you can take on. One rule of thumb you should always apply that is monthly payments on your debt should not exceed 20% of your homestay.

So this is how you can manage your debt and pay off asap. This is more convenient and better rather than other ways. Clearing off debt is one of the best ways to live a life at peace and also good way to grow in your life. And always follow 50-30-20 rule. 50%to cover basic needs, 30% to cover wants and 20% to invest or clear off the debts.

S. Vishwa is web marketing analyst at Finology Ventures. With 5+ years of web marketing experience, joined a Fintech company to help people to learn and earn more.