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Debt Counselling

                            Do Debt Counseling on your own - Use these 5 methods
It is very easy to fall into debt if you don’t manage your finances well. Money management is a very important factor if you want to keep your expenditure less than your income. Whenever you start living out of your means and spend more than what you earn, you will fall in debt. You would then have to take the help of various professional agencies for debt counseling. A debt counseling session will enlighten you about the methods of money management and why is it important to keep your finances under control. Here are some tips that you can use to manage your money well.
1.      Use cash for transactions – When you have multiple credit cards you tend to lose track of how much you are spending. Since credit cards allow you to withdraw money till the credit limit, you keep spending without heeding how much balances you are mounting on your credit cards altogether. When you realize, it is perhaps too late. Thus using cash is a very practical idea which will help you to keep a record of the money being spent. Also since you can’t carry too much cash, you won’t even be able to splurge too much.
2.      Keep low interest credit cards – You should keep at the most two credit cards for the purpose of emergency. You should see to it that these are low interest credit cards. If you have high interest cards your debt keeps mounting because of the money accrued on the interest payments.
3.      Pay back your high interest debts first – You should always pay back your high interest debts first. Because, the more amount of interest payment you have to make, more money goes out of hand. Thus it is better that you pay off your high interest debts as soon as possible to save money in the long run.
4.      Create a savings account – You should keep a little amount of money aside from your income every month in a savings account. Once you build a savings account you can use it for any emergency financial needs. Taking out multiple loans for meeting any financial needs that requires lump sum cash is not a good idea always as these loans have interest on them and ultimately you end up paying a lot more money.
5.      Make an investment portfolio – It is advisable that you create an investment portfolio after consulting with professionals. You can spend money on stocks, bonds, annuities and so on. Most of these investments when handled properly give you good returns. Thus you are able to make money through them.
The above 5 points can help you in money management and handling your finances well.


Erica Martin, 22/10/2011