1. Four top tips: Four highly recommended
Wednesday, September 8th, 20101. 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.