CAPC Debt Management Blog

Managing debt can seem like quite the task to take on. Many people don’t even know where to begin. Oftentimes, when things seem like are at their worst, people can start feeling like there’s no way to bounce back financially. However, I’ve come up with four tips that can help anyone manage their debt more successfully.

1. Be Organized - A lack of organization could have lead to you being in debt in the first place. That being said, once you’re in debt, organization is quintessential to debt management. Utilizing calendars, planners, organizers, or anything else that will help you make payments on time can be a tremendous help. Additionally, keeping track of paychecks, and keeping strict accounts is also very beneficial. The key to any type of management is organization, and it’s no different with debts.

2. Seek Help If Needed - When trying to manage debt, too many people think they can get through it all by themselves. It never hurts to seek advice from people who have been through things before. Also, if things are bad enough, professional financial help can also be very beneficial. A lot of people find debt consolidation to be extremely effect when trying to manage debt. Remember to not go into anything too hastily, and always read the fine print. Those who are too proud to seek help with their debt management, even if it is needed, usually have further financial difficulties.

3. If Possible, Pay Bills Online - This is my personal preference, and by all means you can continue to deal with checks if you prefer. However, I’ve found that paying bills online can sometimes be much easier, and can help avoid late fees. Whereas with checks, you have to make sure they are in the mail a few days before the due dates, you can sometimes pay bills online the same day. Also, for someone like myself, who finds computers to be a lot easier and more conducive to organization, online payments are the way to go. Rather than worry about filing countless amounts of papers, you can simply put a paperless statement in a folder.

4. Don’t Let Yourself Become Overwhelmed - Staying calm is central to any debt management. Even if the bills are piling up, if you panic, or start to lose focus, things can get much worse. Keeping a clear head and having a defined plan to get out of debt is the best thing to do. This can be accomplished with organization and any help you may feel you need. It’s tremendously difficult to stay organized if you are in panic mode constantly. So remember, just stay calm and focus on the tasks at hand.

So those may only be four tips, but they can significantly help anyone with debt management. Unfortunately, it is generally quite easy to get into debt, but very difficult to get out of debt. The main key to debt management is organization. Paying bills on time and slowly lowering one’s debts requires a significant amount of dedication. Last, but certainly not least, remember to not let yourself become overwhelmed, because that never helps solve debt worries.

Heather P. Johnson is a freelance writer, as well as a contributor for Credit Card Lowdown, a site for finding credit card reviews. Heather invites your comments and freelancing job opportunities at her GMAIL email address.

Setting a budget is a time honored tradition, it’s like making a New Year’s resolution, in that the hardest part is sticking to it.  Everyone wants to get out of debt, but it’s not as easy as we all think.  There is no quick fix, no magic pill, and no hidden treasure chest in the back yard.  Take a look at your current spending habits to see where you can make changes to help you stick to your budget.  To make your budget a reality, set yourself limits that you know you can stick to and then come up with creative ideas on how to keep yourself in line.  Here are some suggestions:

1. Low-Cost Items:  Take a look at the low-cost items that you routinely use and see where you can save.  Maybe the toothbrush you buy at Target for $3.50 can be purchased at the dollar store for only $1.00.  Try replacing your daily latte with a cup of regular coffee mixed with hot cocoa, or opt 2 days a week to drink the free coffee at the office instead of going to the local latte shop.  Check out your liquid soap, it cost usually 3 times what a bar of soap costs and is used up quicker due to the packaging.  Using these simple ideas for the low cost items that you routinely purchase can save you $10 to $15 dollars a week which will add up to $520 to $780 a year. 

2. Eating out:  Restaurants are a great way to treat yourself, but the dollars will add up quickly.  Eating out once a week at $12 dollars a lunch adds up to $624 a year.  If you eat out more than once a week you will double or triple that amount.  If you cannot give up eating out, then order a meal that can at least be divided and saved for a second lunch to feel like you are eating out twice a week. While out, try ordering water, rather than a costly beverage to keep your check lower.

3. Discount shopping:  While everyone loves designer labels and dressing well with today’s fashion, there are many ways to make your money last longer.  There are many discount stores that carry designer labels at a much reduced cost.  Most of these stores even do additional markdowns after the clothes have been on the racks for some time.  Purchasing out of season is also a great way to get discounted brand name clothes at reduced prices.  Buy a great sweater in May could save you up to 50% off the original price, put it in the closet until next fall and it will be just like new. Read the rest of this entry »