Debt Management: a Little Help is Always Good!

by : Marsha Claire

Managing debt is what we all have to get used to no matter what. With the number of people flocking for loans constantly increasing, so is the number that default with repayments. Result: further debt. The case is the same with monthly grocery, medical and credit card bills that stand pending for months to come-once again leading to debt. There's debt everywhere-in education, medical care, finance and banking and even in the government. Most of us either get accustomed to it or become proactive and work towards getting rid of it. If you belong to the latter category, here's a little something that can help you in the long process-Debt Management!

DEBT MANAGEMENT solely works towards eliminating debt and ensures that you stay out of it. It also helps you manage your finances efficiently so that you are in a more organised position to make your payments and keep a track of your expenditures. This will only prevent an unaware situation of debt from emerging. Debt Management works through a number of programs like debt negotiation, debt elimination, debt consolidation, debt counselling, etc. It may also involve a merging of two or more programs to make its goal more effective.

In a Debt Management program you will usually work with a counsellor. This counsellor will assess your financial position by studying your finances in detail. He/she will take into account all your sources of income, your outstanding payments, unpaid bills, expenses and weigh them against each other. Based on all these statistics and your saving and spending habits, a budget is prepared for you. Although it's up to you whether to follow it or not, your counsellor will rigorously work with you to maintain it. Any superfluous expenditure is avoided, extra credit cards are frozen, additional bank accounts are closed, etc. All this is meant to prevent you form making expenses that you can do without. Debt Management usually satisfies all customers and gets their finances back on track.

You must remember that although your counsellor works with you, he does not make your choices on your behalf. It's up to you to make these efforts fruitful. If you cannot keep up to your schedule, it's better that you avoid such programs in the first case. You also need to choose a Debt Management agency that puts your interests before theirs-an agency that does not charge consultation fees, one that upfront with information and costs, one that provides credit counselling to avoid your coming back to them for debt management once again, etc. An agency without these is not right for you.

Ultimately it's your money and your choice to get out of debt. If you work hard enough to keep to your budget, fiscal freedom cannot be far away!