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10 Best Household Tips To Help With Debt Management

Most of the time, you may not have too much of a problem repaying your debts but, sometimes, it can really get to you, and really stress you out. Given below are the ten best household tips to help you out with debt management:

1. Create a budget
A budget is a really good tool. Basically, you write down your expenses and your income. It really helps you identify how your debts are accumulating, and will put you in a better position to tackle your debt as you know where your money is going. You can cut down on frivolous spending.

2. Start saving
Make it a point to put a certain amount of your income in an account every month, so that you can use this money when you get into some financial difficulty. However, make sure you don’t let interest expenses accumulate at the expense of saving money.

3. Cut down on excess bank accounts
When you have too many bank accounts, you’ll find it difficult to keep track of how much you have and where. You may needlessly accumulate debt when you may have enough money to settle those debts immediately.

4. Get professional advice
If you’re finding it really difficult to get on top of your debts, it would be a good idea to go and get some free professional debt help.

5. Call up your creditors
If you’re having difficulty repaying your debts, call up your creditors and tell them about your situation. They may be willing to reduce your interest rates, or even reduce the amount due. They will be OK with this arrangement, as they’ll at least be getting something rather than nothing.

6. Prioritise your debts
Make sure you pay off the debts which levy the higher penalties as soon as you can, so that you can cut down on unnecessary interest payments. Also make it a priority to pay off the debts which are secured against your property, so that you don’t risk losing possession of them.

7. Online payments
Most banks now have facilities whereby you can pay your bills online. You can avoid queues at the bank, and it’s much easier to keep track of those bills and pay them on time.

8. Freeze your credit cards
No, don’t go to the bank, just fill a bag with water, and put your credit cards in them (water doesn’t affect the credit card). Put this bag into your freezer and you have frozen your cards. The whole point of this is to make sure that you don’t use your cards unless you really really need them.

9. Keep track of your correspondence
It’s very important to keep track of all correspondences you make regarding your debt management, so that any conversation or letter you had regarding your credit can be traced to the original source.

10. Keep your calm
The most important thing is to keep calm and stay focused. Don’t start tearing your hair out just looking at the bills.

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