You should at first list debts, and write down in a book or paper. Also mention the name of creditors and amounts of the debts. If it requires for you to do monthly payments then include also the due date.
Your credit report should be in accordance with the debts on your list. Look at all the debts not during month ends. Allow yourself to see the big picture of debts and be aware of it.
Never forget to see the debt list frequently after listing it. Referring to your debt list including bill payments will be helping. Thus, you need to update your list when payments been done or in any case. I know it’s tough to maintain any list made at home but you should be practical enough.
Always avoid late payments because it will be harder for you to pay off the bills. And if late fee used to be charged on every bill payment or in any matter give priority to pay first. If you miss even two payments of any loan then your interest rate and finance charges will also increase.
It’s good to use your smart phone and set an alert to remind you several days before your payment is due. However, if you miss any payment then please don’t wait until the next due date. Just be sensible to do your payment as soon as possible. Otherwise, it could be reported to a credit bureau.
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Prioritize Debts
Try to fill with the date of each paycheck that gets debited from your account. If your salary paid to you on usual days every month like the 1st or 5th then you can use the same method for every month.
However, if you can’t afford to do the required payments then at least make the minimum payments as per your capability. Some banks accept whatever you pay on regular basis but it keeps your debt growing more and more. But, it keeps your account not in good standing. You’ll lose a good credit score.
Pay off the credit card debt first because credit cards have higher interest rates than other debts. Remember that you can only pay as much on your debts as you can afford to. So, focus always on keeping your credit cards in good standing. Never ever sacrifice your positive accounts.
This is so important because you can’t get anymore credit if you spoil your positive accounts. To cover an emergency expense often people get troubled because they don’t have savings.
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Creating a small emergency fund in your savings account will benefit you as $1,000 will be enough to begin with. Once you achieved this thousand dollar savings then make it your goal to create a bigger amount as $2,000 and so on.
Also Read From Another Source: About How to Manage Debt… Types of debts…, etc.
This way you can find a reserve of six months of personal expenses. And you’ll not be in a panicky mode to feel tentative over carrying out personal expenses easily. Thus you can manage debts without bothering too much about personal expenses.
