Money Issues

What Are The Debt Management Techniques?

Too many debts can be crippling and exhausting if you don’t start on time to tackle them. If you ignore timely elimination on your debts, they will pile up to a huge mountain that you wouldn’t know where to start in paying them off. Anyway, if you already exist under a thick cloud of debts, don’t kill yourself over it because the truth is that you are not alone.

According to a NerdWallet analysis in 2014, an average U.S household already owes more than $15,000 debts on credit card alone not to talk of other debts like rent, mortgage etc. No matter how much you are already owing, there are some debt management techniques you can adopt today to be free from your debt obligations. be free from your debt obligations.

happy couple shopping online

Getting debt management techniques:

• Create a personal budget – according to Money crasher contributor, David Bakke, this is the first step you shouldn’t miss while trying to manage your debts. You can either use an excel spreadsheet or some tools like Make sure your budget include your monthly income and expenses so as to find the categories where you can cut down costs. This will help you not to dig a deeper and wider debt hole.

• Know how much you owe – after making a budget on all your income and expenses to check what you are earning and spending, you need to get a total breakdown of what you owe. Make a list of all your debts which include your creditors, monthly payments and their due dates. As you pay each one, update the list to eliminate it and know where you stand.

• Negotiate – after you have prepared the budget to check your future spending, do some negotiations with creditors like your credit card company to ask for lower interest rates. You can either do it yourself or you employ the services of a credit counselor. You might be surprised on what deals you can get from just negotiating for a lower rate.

• Prioritize your debt payments – this will help you to place all the debts in an order that can be easily managed. Start from the highest to the lowest if you can’t touch them all every month. You can also make sure you are current on secured debt obligations like mortgage and loans which are backed by properties and also prioritize on debts from utilities, federal tax laws and student loans.

• Pay a double of the minimum balance – instead of prolonging your debt repayment by making only a monthly pay off, you can reduce it to paying on weekly basis instead. Also if you can pay a double of the minimum balance, your repayment will be shortened as well.

• Transfer credit card balance – if you own a high interest card balance which you can pay off in few months, move the debt to a card that allows for zero-interest balance transfer but make sure to pay it off before the balance transfer expires.

• Drop your credit card – try to live on cash for some time to avoid accumulating more debts. If you are finding it hard to do, drop your credit cards at home when you go for shopping or even remove them entirely from areas you can access them easily. It may not be permanent but till you pay off your debts at least.

• Channel all additional money to paying off debts – if you are lucky to get a bonus from work, it wouldn’t hurt to use it for repaying your debts. Ordinarily, you would have used it for something personal like going on vacation or buying something colorful. Just endure the pains now for the future gains of financial freedom.

It is always better not to allow debts to accumulate but if they do, you can use these techniques to offset them and be free. A debt free life is more relaxing and comfortable.



  1. Michael Welter

    November 2, 2016 at 11:00 pm

    You may be tempted to spend out of your budget range every now and then, but with self-discipline on your financial matters, theres no way that you cannot achieve your monetary goals. DISCIPLINE is the keyword.

    • Melanie Nichols

      November 3, 2016 at 4:52 pm

      Well said. Discipline is often the key in things we want to master.

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