Managing your debt can seem like a daunting task - these debt management tips can help you sort through the confusion and create a plan of action to take control of your debt.

Debt Management Tips

Start With A Budget
• No one likes creating a budget, but it is unavoidable. You must be aware of your total income, your monthly expenses, and what is left over after necessities before you can manage your debt.
• Write out your budget or use a money-management software program like Quicken or Microsoft Money. You must have a hard copy to refer to in order to make your budget work.
• Enlist the help of a financial planner if needed. It is okay to ask for help, just keep in mind that money spent on advice could be paying off your debts. Free debt management advice is available, but you will need to be cautious about accepting such advice and be aware that most free advice comes with the hope of attracting your hard-earned cash in some way.

Create Healthy Financial Habits
• Begin a small savings account while you are paying down your debt. Even if you can only add a few dollars a week to your balance, this creates a habit of saving. Once your finances are more stable, your savings goal should include 10 percent or more of your total income.
• Prepare for your future. Research your investment options and start small. Sign up for a variable rate life insurance policy or take advantage of your employer’s pension or 401K program. Every penny you invest now provides for your future financial needs.
• Cut back your expenses. While you are learning to manage your debt, eliminate all expenses that are not vital to your survival. Consumable expenses such as brand name clothing, cable television subscriptions, daily newspapers, and that morning run to the local coffee shop all eat away at your income. Learn to live lean.
• Give to those in need. Developing a habit of serving others helps you put your needs and wants into a more realistic perspective. Sharing a meal with a man who owns a single pair of shoes can help you decide if you really need yet another pair of sneakers for your collection.
• Log your expenses. Keep track of every penny that you spend and write it down. If you have difficulty keeping records, carry an envelope with you and learn to ask for a receipt with every purchase. Stuff the receipts into the envelope and log them into a register once a week. You cannot manage your money unless you know where it is going.
• Balance your checkbook. Even if the running balance is dismal, keeping an accurate account of your financial situation often keeps you from buying on impulse.
• Open your bills as they arrive and write the amounts owed and the due date on a calendar. Ignoring past due notices and mounting bills does not make them go away.

Manage Your Money
• Eliminate unnecessary banking accounts. Too many checking accounts can become confusing. One joint checking account is easier to track and gives you a more accurate picture of your financial situation.
• Consider utilizing direct deposit if it is available. This can often curb the temptation to blow your paycheck as soon as your receive it.
• Automatic bill pay is a great way to avoid late fees for static payments such as budgeted household utilities and minimum credit card payments. Just be sure to double check the account balance often to avoid overdrawing your account.
• List all of your outstanding debt in order from the highest to the least interest rates. Begin with any debts under $100 and pay those off first, then tackle the bill with the highest interest rate next. As each debt is paid, apply that payment to the next debt on the list until all of your debts are paid off.

Get Advice
• Seeking the advice of your local Citizens Advice Bureau, financial planner, or credit counseling service is always a good idea. The more knowledge you have about debt management, the more capable you are to manage your personal debt.
• Consider enrolling in a financial management educational program such as Crown Financial.
• Check out personal finance reference material from your local library. These materials are located in the 300 section of any library that operates under the Dewey Decimal System.

These debt management tips will help you develop and stick with a realistic and healthy debt management plan that works for you.

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