How to Manage your Debts Efficiently?

Category : FINANCE Author : Rajaraman K Date : Sat Mar 10 2018 Views : 26

If you are indebted even for a small amount, still, you have to deal with it with awareness. And when you are in excess debt, you have to be more alert and pay off your debt. You can manage your debt either through debt management services or try to manage it on your own. For this, you have to prepare a list of your debts, the creditors and amount of the debt.

To verify the debts on your list, you can use your credit report. You have to update your list of debts frequently as the amount of your debt will keep on changing. If you delay in making your payments, you are liable to pay a late fee as a fine and the interest rate and other charges may also increase. Sometimes you may miss to make a payment.

Never wait till the next due date to make your payment. If you are not in a position to pay some amount more, at least try to make the minimum payable amount. The minimum payment may not result in any improvement of your debt but it will at least avoid your debt from accumulating further. It is because it becomes difficult to catch up when you miss payments. 

As you know, credit card dues should be repaid first. Credit cards which charge high interest should normally get priority for repayment. Once you have your list of debts, you can use it to pay the debts in the manner you want to pay them. It is your choice. At the same time, if you have limited amount to repay your debts, you should maintain your other accounts in good state. 

You can always pay the dues of earlier periods when you will be in a position to do it. Your creditors will keep on collecting the dues as long as you have some outstanding balance. Without access to savings, you may have to go into debt to cover an emergency expense. If you build up a small emergency fund, it can help little expenses that may come up from time to time. But, first you have to build a small emergency fund.

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