One of the scariest and most overwhelming aspects of life is dealing with excessive debt. America is plagued with debt; the average U.S. household with debt carries approximately $129,579 in total debt. When it comes to paying off debt, there are many different options. Here are some techniques to help you calculate your debt and pay it off in a timely manner.
The first step to understanding your debt is to calculate your debt. Figure out the exact amount you owe, who you owe it to, the monthly payment, and the due date. It may help to create a monthly bill payment calendar so you can visually see when a payment is coming up. If you choose this option, make sure you put your pay days on the calendar to stay organized and make you less overwhelmed.
Another crucial aspect of debt management is prioritizing. Figuring out which debts carry the highest interest rate and should be paid off first can save you a lot of time and frustration in the future. This usually means that credit cards should be paid off first, as they often carry high interest rates. Another idea is to pay off the debt with the lowest balance first. Alternatively, opt to pay off the debts that haven’t yet had an impact on your credit. Debts that have already lowered your credit rate should not be as high of a priority as paying off debts in good-standing.
Although it can be difficult to save money with so much debt, try to put together a small emergency fund for unexpected accidents or hospital visits. If something comes up that requires immediate funds and you don’t have them, it will only add to your mountain of debt.
If you don’t already have one, consider creating a budget for each month. This will help you plan your expenses ahead of time. If you plan far enough ahead, you’ll be able to shift funds around if unforeseen circumstances arise.
Finally, if you’re still feeling completely overwhelmed, it’s important to recognize when you need help. If you feel as though you’ve tried everything and are just falling deeper into a hole, there is absolutely no shame in reaching out to a debt management company or debt management firm. The best debt management companies will sit down with you one-on-one, discuss every option you have, and provide help paying off your debt.
Having a lot of debt is undoubtedly overwhelming. Calculate your debt, do your research, and stay vigilant. If you take the right steps, you can take charge of your debt and get your life back.