There are two ways to think of debt - good debt and bad debt. Good debt would be considered student loans, mortgage or a car loan. Bad debt would be consumer debt – this is the kind of debt you get with credit cards or payday loans. How can you deal with debt? Here is some helpful debt advice that can help you, regardless if you have good or bad debt.
Know your debt - Did you miss a phone bill? Maybe a credit card payment? It’s important to know who you owe but also how much. By having a list of your debts, it will make coming up with a game plan much more manageable.
Pay on-time – One helpful debt advice to always keep in mind is to pay on-time. As soon as you get your bill, don’t wait to the very last minute to transfer funds, do it right away. Have a bit of extra cash? Why not put it towards paying off some debt, maybe your credit card?
Create a goal – Maybe you have a magnitude of debt, from credit cards to short-term loans, whatever they may be, if you create a goal of what to pay off, this can make paying them to feel like an accomplishment. Sometimes the feeling we get with debt is it’s a bad thing; however, some debt we incur because it has helped us get ahead; therefore, don’t be discouraged.
Don’t forget to save – When it comes to repayment, it seems as though we must put our money entirely into repayment; however, it’s essential not to forget to set some aside some extra cash for rainy days. Just because you have to repay something, doesn’t mean you have to give up on saving for emergencies.
Everyone will have a different view when it comes to managing their money, especially when it comes to the best debt advice to give. It’s essential to consider your situation when factoring the help you get when managing your debt.