October 22, 2019

How To Use Debt Management To Get Out Of Debt

There is nothing worse than getting behind on one’s bills and being constantly reminded that there is money owed. The constant phone calls, bills marked ‘overdue’, threats to turn off the utilities all add up to extreme stress and worry about how to get out from under the load. The only way to do this is by debt managament.
Debt Management

Some people simply were not taught, as they were growing up, how to handle money. As long as it was there, it was to be spent with no thought to the future. As a result, money, while giving pleasure and instant gratification, has become a worry.
Anyone with this kind of a problem needs counseling. There are, fortunately, various companies that offer a debt management service. They look at the debts and the income and lay out a plan to get them under control.

Sometimes this involves something such as debt consolidation, debt counseling, debt settlement, or even bankruptcy, depending on the situation. Bankruptcy should be the very last thing considered. It does not erase obligations such as student loans, child support, car payments and other things of this nature and ruins a person’s credit rating.

The number one priority, when getting debts under control, is to keep a roof over one’s head. That means paying the rent or mortgage, the utilities and anything else that is necessary. That does not mean having a housekeeper or gardener, who is taking money that can go to necessities.

After the house is taken care of, one looks at the car. A car is a machine, with four wheels, to get one to work or on daily trips. It does not have to be top of the line or the latest model out. If a person has high payments on such a vehicle, getting rid of it and getting a sturdy, reliable model will save several hundred dollars a month. Saving a little money each month, until there is enough to pay ‘cash’ for the car of one’s dreams is the only way to go. It saves tons of interest as well as relieving the monthly burden of high payments.

To manage one’s bills takes discipline and hard work. One of the most difficult things a person should do is cut up their credit cards, if they have any. For some, this is like cutting off an arm, but having a piece of plastic in the pocket that will allow immediate gratification, for a purchase, is a temptation some people cannot resist. That card is not the ‘open sesame’ to an unlimited amount of cash, it is a chain around the neck and each purchase adds another link.

Debt management is not easy. It takes discipline and will power as well as, many times, the guidance of someone who is experienced in the field. Finding a company with personnel who have knowledge in the area, and can provide guidance, is a route that has relieved many people of the stress of being overwhelmed with debt. If searching for such a company one should carefully shop around and make sure the company selected is reliable and trustworthy before entering any kind of program or other arrangement.

Learn more, click here: http://www1.va.gov/debtman/

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