It might be Halloween time, but managing your debt doesn’t have to be scary. There are many different strategies for managing debt. Here are a few helpful tips to get you started:
1. Know who and how much you owe. Make a list of your debts, including the creditor, total amount of the debt, monthly payment, and due date. You can use your credit report to confirm the debts on your list. Refer to your debt list periodically, especially as you pay bills.
2. Create a monthly bill payment calendar. Use a bill payment calendar to help you figure out which bills to pay with which paycheck. On your calendar, write each bill’s payment amount next to the due date. Then, fill in the date of each paycheck. If you get paid on the same days every month, like the 1st and 15th, you can use the same calendar from month to month. But, if your paychecks fall on different days, it would help to create a new calendar for each month.
3. Make at least the minimum payment and pay your bills on time each month. If you can’t afford to pay anything more, at least make the minimum payment. Of course, the minimum payment doesn’t help you make real progress in paying off your debt. But, it keeps your debt from growing. When you miss payments, it gets harder to catch up and eventually your accounts could go into default.
4. Recognize the signs that you need help. If you find it hard to pay your debt and other bills each month, you may need to get help. Other options for debt relief are debt consolidation, debt settlement, and bankruptcy.
