Each of us knows the feeling: it’s month end, we have a handful of bills to pay, have to go to several different banks and post offices to pay them, and all the time we are worried that we’ll pay the wrong amount to the wrong creditor. If only we could arrange our debt management a little better, our lives would be just so much easier. But, the fact is that your debt management need not be overly complex; provided that you arrange the management of your debt in a sensible way. The following are some useful tips on how best to control your debt management:
Debt Management – The Standing Order
Nearly all creditors will allow you to make a monthly standing order payment to repay their debt. Although paying your debt by means of a standing order doesn’t mean that you reduce the number of creditors you have, it does make the day-to-day running of your debt management so much easier.
Debt Management – The Direct Debit
Like the standing order, the direct debit is a monthly payment that you agree to make to your creditor. However, unlike the standing order, a direct debit is not for a fixed amount each month; but, rather, is for all outstanding debt you have as of the day the direct debit is due. As such, direct debit debt management is not particularly popular, it’s seen as messy – and if the creditor takes more than you accounted for, it becomes very difficult for you to survive the remainder of the month on the money you have left.
Debt Management – Online Banking
A very popular method of debt management these days is to open an account with a bank that lets you do all your banking and debt management via the internet. This way you can arrange to pay all your bills on time, without having to leave the comfort of your home or office, whilst still having control over the debt management process.
Debt Management – Reduce The Number Of Creditors
If part of your debt management problem is the sheer number of creditors you have, why not think about reducing this number of creditors by means of consolidating your debt. For example, if your have 3 credit cards, why not just make this one credit card debt by paying off the other 2 credit cards using the balance on your third card? Alternatively, depending on the level of savings you may obtain, why not consider paying off your credit cards altogether by asking your bank to provide you with a personal loan. Then all you need to do is to arrange to pay off your bank.
As you can see then, debt management strategies do not need to be too difficult, you just need to give some thought as to how best to arrange your debt management. In this regard, it is probably best that you do not arrange your debt management program where you are walking around the high street at the end of the month with an envelop full of money trying to find the easiest way to pay back each of your creditors!