Debt Management

By Quang Nguyen




Many people say that the average Americans are loaded with the credit card debts. According to CardWeb.com, each American household has at least $10,700 credit card debt on average. However, having debts on your balance sheet not specifically a bad thing.

If you borrow for a home or college tuition, it usually makes good sense. But before you borrow money, just make sure that you can afford to pay back and try to find the best rates. Besides this, in common sense, most of the debts are bad. So always rely on the credit card to pay for things you don’t really need is not the right thing to do. So how to make your debts under control?

First of all, you can get a handle on your spending, which means make sure you think carefully before any purchase --- Do you really need the product or service? Can you afford it?

Secondly, always pay off your highest interest rate debts first. The key to get out of debt in an efficient way is to pay off the debts which charge the most interest. Once the highest debt is paid down, move to the second highest debt, and so on. In addition to this, watch where you borrow is also an important factor to make your debt under control.

Finally, there is one more thing to keep in mind --- get help as soon as you need it. If you think you are not capable to pay off your debt on time. You should start to seek for help immediately before it turns to be a financial disaster. There are many reputable debts counseling agencies may assist you with mange your debts and improve your financial situation. So don't feel hesitate to get advices from these professional agencies.

References:
http://www.mint.com/blog/train-wreck/debt-management-the-bike-that-crashed-me-financially/
http://www.cgmahq.org/Assistance/Programs/Deb.htm
http://cardweb.com