No matter how much or how little debt you have, it’s a good idea to develop good debt management habits. When you have only a little bit of debt, you just need to keep up your payments so that your debt doesn’t spiral out of control. But when you have a lot of debt, it can be overwhelming trying to juggle payments on debts for each of the accounts you owe.
To help you with debt management, we’ve put together a list of tips.
Keep up with how much you and who you owe.
Creating a list of debts that includes the names of the creditors, the total amount you owe, the monthly payments you need, and the due date for payment is a good idea just to help you visualize exactly how much you owe and need to pay off.
Make at least the minimum payment.
While it doesn’t help in making real progress in paying off your debt, making at least the minimum payment will prevent your debts from growing further.
Decide which debts to pay first.
Out of all your debts, you’ll want to pay off your credit card first, then your debt with the highest interest rate, since it grows the fastest. If you’ve followed our first tip, you can use the list you created to help you decide which debt to prioritize.
Create an emergency fund to fall back on.
While this won’t help in paying off your debt right now, having a pool of money at hand for emergencies will help you in the future if you run into financial troubles.
Call for help.
Sometimes, it’s best to simply admit that you need help. When your debts are overwhelming, your best bet is to rely on a debt counseling company who can help get your life back on track so that you can focus on what’s truly important to you, rather than being weighed down by debt. In this case, Westgeest & Associates is happy to help with our debt management services. Located conveniently in Burnaby, we bring our services across Vancouver helping those in debt.