DEBT MANAGEMENT IN TIME OF CRISIS

Hi ! everyone,

Time is getting tough and the tough gets going. With the economic crunch taking its toll everywhere and in every industry, masses are facing lots of pressure to stay financially afloat. For those who have outstanding debts and have not paid for the last two years, one way that can help you is debt management.

Debt management in plain words is a tool designed to assist borrowers to manage their debts.  It helps to contain debt so that it does not blow out of proportion. You may engage the professionals to do it for you or alternatively do it yourself. The former will cost you, but not the latter.

Some tips listed below may help you do debt management on your own. So, review your situation and employ one or all techniques that you feel you can do.


1. Set aside a certain percentage of your income
The borrowers will often set aside a portion of their single or combined income for debts payments. It is actually a good idea to prioritise payment of debts and set  aside  a certain portion  of your monthly income for debts. This will help you bring down your expenses. You will then have to pay for the debt once you get your salary. In this manner, you will not be tempted to spend this money away.

2. Settle debts that bears higher interest

By doing so, you will help reduce the interest. Debts that have higher interest rates will mean that you will be paying a higher monthly interest for them compared to the lower interest ones. This way you will settle your debt much faster as a result of lower interest payment.

3. Reschedule your debts

Talk to your lenders to reschedule your payment to match with your income. This will prevent you from incurring the overdue interest or penalty interests or both if applicable.


4. Get rid of the Credit card
It is convenient and able to save lives in emergencies. But it can be evil if it is in the hands of people who do not know how to handle their money well.
Leave it at home or cancel it before you incur more debts than you can ever pay for.

5. Pay more and often if there is an opportunity
If you have excess money, pay more and often. That way, you will incur less interest charges. As a result you will be able to fully settle your debts faster.


I hope the above quick fix solution is useful to you.

Wish you success in your debt management.

James Oh