Four Golden Rules For Effective Debt Management

Managing debt can be hard, but with the right tools and advice you can get your finances under control and have a secure financial future. The key is to find a method to the madness that works for you, and that fits your budget. Once you do, the next step is to stay on track with whatever choices you have made, and before long you will see your savings grow and your debt become non-existent.

If this all sounds good to you, here are tips to get you started. These four golden rules for effective debt management have stood the test of time, and after implementing one or all of them you should be on your way to financial freedom:


  • Come up with a budget; this is a tool that starts off nearly every list for how to take back control of out of control finances. Until you know what you make each month and what you spend it on, you will be unable to put pen to paper and cut back where possible. But, once you do this, you will see how much of your hard earned money goes where and where you can save a little. And keep in mind, it is not enough to just come up with a budget, you also have to follow the budget. For some people this is accomplished by creating spreadsheets of expenses, but can be as simple as starting with balancing your checkbook or keeping receipts.
  • Pay off debt as quickly as possible, so the amount of money you pay towards interest each month is decreased. It might be a good idea to start by paying off the smallest bill first so you have a sense of accomplishment, then start working on the next smallest bill. Or you might prefer to pay off debt with the highest interest rate first, and then tackle the next highest rate. Whatever gets you to zero balances is the goal.
  • Avoid using credit cards unless you can pay them off in full each month.
  • Pay your bills on time, doing so will boost your credit score and help you to avoid paying late fees.

Even if you do these things, we know disaster can strike. If it does, don’t panic. We are here to help. Whether help is in the form of bankruptcy, debt consolidation, or a mortgage modification, we know what needs to be done to get you back on schedule.

If you have more questions about debt management, contact us at We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Leave a Reply

Your email address will not be published. Required fields are marked *