HOW DO I MANAGE MY PERSONAL DEBTS AND ALSO GET OUT OF DEBT

COMPLETELY?

Debt is an amount of money borrowed by one party from another under that must be paid back at
a later date, usually with interest. In fact, debt is used by most corporations and large
organizations as a means of owning assets before paying for them.

Debt is not entirely bad although the mere mention of it often sends shivers down the spine of
most people. It is important to efficiently manage your debts so you are not drown by them.
Debts sometimes provide convenience, freedom and flexibility in our lives however this same
debt has the ability to condemn you into financial turmoil if it is not managed well. It is for this
matter that debt management is an important lesson for both individuals and organizations.
Below are some of the steps you can take to either manage your debts or get out of debt
completely.

1. Give More Than the Minimum

Once you are in debt, you will have to pay and it is only wise that you always pay more than
your minimum payments. Repaying off your debt can prove to be a never-ending cycle if you
decide to do the easiest and comfortable – paying in bits! If you want to see off your debt
quickly, pay as much more as you can afford because these little trickles of a dime, cedi or cent
can accrue to become a chunk sum in the long term.

2. Always Repay Your Most Costly Debts First

Sometimes when in debt, the best and smartest thing to do is to quickly repay the priciest debt so
that you can heave a sigh of relief. Every so often, the huge debts never get paid because they
usually appear “scary” and unserviceable. So in order to come out clean from your personal
debts, decide to pay off the debt that is costing you the most interest and focus all of your extra
payments on paying that one off first. As soon as your most expensive debt is paid off, the rest of
your debts may now seem easy to pay until you have finally settled everything you owe.
Remember that not being able to see off your debt quickly can put you under lots of financial
burdens and problems.
3. Get a second job – Sometimes doing an extra job does the trick! If doing one job is not
sufficient in terms stashing away some monies to settle your debts, then taking up another
job or a couple will make a huge difference. Working for extra hours can help change
your status from being a debtor to being debt-free. That job must not be a permanent one
as you can downsize.
4. Monitor Your Spending and Identify Areas to Cut Back -In addition to knowing your
total expenses for each month, you must have a plan in place and execute the plan. For
instance, buying a less expensive car, fewer shoes and reducing the talk time on your cell
phone service, are easy ways to come up with some extra cash to fund your debts.
Finally, you need to view your debt as a priority that must first be taken care of quickly.