Simple tips and strategies to manage debt

Author: Jackson Gilbert

New York is a big city, and finances can be right here. If you live and own a business here, you have to be on top of your finances. Otherwise, you will fall behind on your payments. Whether you are unable to pay off a bill or you took a business or individual loan and are now unable to pay off, you have ways to handle it.

It is best to figure out what your strategies will be before a debt collection in New York gets your account. A collection firm can help you pay off the debt, and get a payment plan. But isn’t it better to not let your account go to collection, and pay it on time? Here are some tips to help you with the same.

Tips to stay on track of your debt

1. Have a budget

Whether you have personal debt or business debt, managing your budget is the first step to ensuring you always pay the EMIs and bills on time. So, create a budget and monitor every money that comes and goes out. It will make sure that you have an emergency fund set up for times when your income or revenue is less, which makes you unable to pay the bills.

2. Lower expenses and bills

For business, it makes sense to lower expenses to pay off the debt or outstanding bills. They can cut back on anything that is not crucial for the survival of the business. However, for an individual, this will mean cutting down on bills. So, if you are not using a cable to watch anything, cut the subscription. Start eating at home, instead of ordering food twice a week, and so on.

3. Get money flowing

For a business, making better opportunities to get more revenue is the best way to pay off the debt. You can invest in marketing on social media, offer discounts, or raise your prices for the same. Also, if you have some vendor or client who isn’t paying, hire a collection firm like Cedar business services to get your money back. That will help you tremendously to pay your debts.

For individuals, picking up side hustles is a great way to make money to pay their due bills.

4. Consider bankruptcy

If your business is unable to pay even the smallest of debt, it is best to file for bankruptcy. It will help you with stabilizing your finances and give you a break from collectors and creditors.

5. Debt relief

Asking for debt relief plans is also a great tip if you are struggling with your debt.

What strategies to follow when you have multiple debts?

If you are struggling to pay off multiple debts, you can do the following as per FDCPA:

  1. Pay the debt which is the smallest, meaning the debt with the least amount. Once that is out of the way, you can focus on the others.
  2. You can also pay the debt which has the highest interest rate first. It is logical as it will keep accumulating interest if you keep it for late.
  3. Consolidate multiple debts into one.

Debt is never good for your business or personal finances. It is better to find ways to pay it off quickly or monthly whichever is feasible to you, but pay it on time.