10 Ways to Manage Your Debt

Very few people manage to make it through life without accruing some kind of debt. For most of us, a mortgage is unavoidable and other types of credit such as auto loans and credit cards seem to become commonplace; but if you can manage your debts then this doesn’t necessarily have to be a negative thing.


Design and create an extensive budget which documents all of your incomings and outgoings. Make sure that you calculate your monthly or weekly net, allowing you to easily see your disposable income for the next thirty days; letting you be purchase-smart.

Purchase Tracking

Along with the budget, try to keep a history of all your outgoings that don’t come under your monthly budget. Things like impromptu lunches or car repairs which are difficult to foresee should be recorded and given an attribute. Compile this into a chart or graph and you will be able to see how your disposable income is being spent, this can help you crack down on over spending.

Advice and Counsel

There are endless free resources that can teach you how to manage debts, just like this article. Speaking to a certified and expert debt management consultant can do wonders for those overwhelmed with their heavy outgoings, it’s always nice to hear that you’re not alone.

Beat the Minimum

Paying the minimum repayments every month is not advisable unless absolutely necessary. Most types of credit will reward consumers for early repayments and you can save yourself money in the long run.

Increase your Income

This might sound like an obvious piece of advice, but most people have an untapped skill or talent that could be monetized quite simply. Supplementing your income by selling a service or product, or even by getting a second part-time job; can work wonders for managing ever-increasing debts and giving you that breathing room.

Negotiating and Haggling

The art of haggling is now normally reserved for second hand or used goods, but it’s always worth a try when making any purchase. Large investments like houses and cars can benefit from haggling. Trying to get free extras or the price knocked down can make big differences if you’re making monthly repayments.


Consolidating your debts into a single monthly repayment can help you plan for large purchases in advance, so contracting an agency to pay your debts and charge you a monthly fee can be beneficial to a lot of consumers. Whilst the interest rates will be a little higher, you can plan your budget closer and avoid fees and charges.

Friends & Family

Many of us are afraid to ask, but borrowing money from friends and family who can afford it is often a lifesaver for those in debt. Not having to worry about high interest rates and late payment fees can help you to relax and make a fresh and confident assault on clearing the rest of your debts.


Always make sure that you prioritize your payments. Any debts that are backed by your property should be prioritized, whilst those that have the biggest impact on your credit score should also warrant close attention.


Bankruptcy should only ever be used as a last resort, but it can be a useful piece of legislation for those who have fallen on hard times. Whilst it will have a dramatic impact on your credit score, it can provide a fresh slate and a way out of impossible unsecured debt. Always speak to an expert before resorting to this and research which Chapter of bankruptcy would be most suitable for your situation.



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