1. Four top tips: Four highly recommended methods for managing debt are to track your expenses, cut spending, pay cash and establish an emergency fund.
2. Make timely payments: If payments to your DMP and creditors aren't made on time, you could lose progress you've made on paying down your debt.
3. Know the differences: Debt management companies come in many forms, including debt consolidators, credit card companies internal departments (ironically), credit counseling organizations, and settlement attorneys.
4. Exercise due diligence: Research debt management services very carefully; the FTC has found that some organizations that offer DMPs have deceived and defrauded consumers.
5. One-stop shop: Credit counseling agencies advise you on managing money and debts, help you develop a workable budget, and offer free educational materials and workshops.
6. Never hurts to ask: A quick call to a credit card issuer often results in reduced interest rates; if not, convey that you're considering transferring balances.
7. It's up to you: No debt management solution will work if a consumer can't responsibly handle credit cards and control daily spending habits and routines.
8. Lose the loans: non-profit community service organizations can often provide confidential financial guidance, free consumer credit counseling services, educational resources, and debt management assistance.
9. Helpful articles: Many consumer debt-management companies offer online newsletters with weekly educational tips for balancing your budget, making ends meet, and achieving your financial goals.
Author: Tadas Talaikis
Author Bio:
Article by Nakagava Ltd., creator of PiggyBob?, the first truly user friendly personal finance and time manager. PiggyBob? is an extremely convenient tool to help you keep track of your income and expenses, plus a very useful calendar to record all important events in your life. All the data you record in PiggyBob? can be handily visualized in graphs.
