Living with debt can be difficult. It takes a family commitment to successfully manage when debt seems overwhelming. Following are tips that are important in managing and reducing debt.
*Make getting out of debt a priority.
*Do not go shopping just for something to do.
*Pay at least the minimum on debt and loans.
*Look for temporary sources of income if possible.
*Look at ways to reduce expenses.
*Re-evaluate deductibles everywhere possible.
*Contact creditors before you miss a payment.
*Involve everyone in the decision making process (including children that are old enough).
*Think about insurance needs (example - unemployment is not the time to let health insurance coverage lapse if it can be avoided).
*Learn about community resources.
*Make having an emergency fund a priority.
*Do not use credit for day-to-day expenses.
*Avoid credit as a way to live beyond your means.
*Make sure you know all of the credit charges and rates of interest.
*Know what it costs to live. Keep records of your expenses.
*Plan for larger expenses by saving each month.
*Challenge the whole family to find ways to save money.
*Look for low cost forms of entertainment.
*Don’t carry cash. It has a tendency to disappear.
*Wait at least 24 hours for any large purchase.
*Invest in yourself if education will help you find a better job.
*Try to preserve as much of your equity as possible.
Remember to involve everyone in the decision-making process and challenge the whole family to find ways to save money.
Source: www.paydowndebt.unl.edu
University of Nebraska-Lincoln Extension
