(Source)

Over the next few weeks we’re going to explore various debt-reduction strategies and look at some ways you can better manage and hopefully eliminate your debt. Once you’ve gotten a clear picture of where you stand in the debt arena, you can then decide which method(s) work best for your situation. Once you’ve put together a solid plan that fits your budget and debt load, you’ll be well on your way.

First, let’s look at a few ways you can make your debt management process a little easier.

  • Don’t get any deeper in debt! Whatever you’re doing, be it hitting the big Macy’s sales every time they have one or copping the latest Air Force 1’s in almost every color…STOP! Think about it; Creating more debt will not help you get out of debt.
  • As far as credit cards, get rid of the ones you really don’t need. That would probably include all of them except one. Be sure to keep the one with the most affordable terms and use it for emergencies ONLY. Be careful about what you justify as an emergency.
  • If you can, move your credit card balances with high interest rates to cards with lower interest rates.
  • Call your credit card companies and request a lower interest rate. While some companies may be quick to do so, some may not, but it’s worth a try. Lower interest rates will definitely help you pay your debts off quicker.
  • If possible, use your savings to pay down debt. While yes you may be earning 1 to 3% interest on your savings account, you’re paying 10, 15 or 18% interest on credit cards.

Hopefully one or more of these tips will help you get your debt management plan headed in the right direction. Keep in mind, these tips will only work if you actually use them! Later we’ll talk more about some strategies you can use and give you some additional insight into managing your debt. So stay tuned for more on Your Money & You!

(Source1)(Source2)