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Three Simple Debt Management Tips

By Ruth Racey
Published: Monday, July 26th, 2010

Most people who have come out of debt will tell you that debt management can help you get out of debt quick and stay out of debt. There are many ways you can get out of debt and while some people prefer one way others prefer another. The key to getting out of debt fast is to choose two or three methods and stick to them. The following paragraphs will elaborate on three debt management tips that can help anyone get out of debts. 

Use Cash Instead Of Frequently Using Your Credit Cards 

There are many advantages of paying cash instead of using credit cards. The main advantage of using cash is that by paying cash your credit scores are not affected since only credit card payments are recorded in your credit report. Another advantage of paying cash is that you will not overspend since you will buy only what you can afford. While shopping, eating out or filling gas you should try your level best to use cash. It is always advised to use credit cards only in situations where you do not have cash to spare. 

Track Your Money Every Month and Save Before You Plan To Borrow 

Before you take any loans you should make it a point to know how much money you have and the amount you will need to spend every month. You should make a monthly budget statement that has information about your income, your expenses and the amount you need to spend on loans. Before you take any loans you should also ensure that you have enough money to bail yourself out of financial trouble in case in the future you do not have money to pay for installments. The best way to do this is to make a monthly statement for 3 months, save for a few months and then take a loan. 

Opt for Professional Debt Management Help 

If you feel that the tips mentioned above cannot help you then you should consult a third part debt management help company. These third party companies take in all your loans and they ask you to pay one subsidized installment periodically. The benefit of opting for these debt management companies is that you have to pay back one company instead of many and you can pay back the installments at a lower interest rate. Since these third party companies are interested in getting back money from you, they ensure that the installment schedule that is given to you is acceptable by you.

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