Recognize the problem
The first and most important part of managing your debt is to be self-aware of how and why you got into this situation in the first place. If you find it hard to pay your bills on top of your debt, you may need to assess your mentality and habits. Are you spending well within your means? Are you spending too much on things you don’t need? Are the items that caused your financial debt necessary? Weight your finances carefully and if you can’t help your spending habit, try to look into credit counseling and having a financial advisor.
Create a monthly bill payment calendar plan
Create or use an organizational calendar to help you plan and figure out which bills to pay, what to buy, what you need for the week and how much is left for savings and paying off your due debts. Getting paid at the same cycle every month can be more convenient as you can reuse your monthly plan for as long as you want or as necessary. If not, creating a new calendar every month would be what you have to do.
Stop creating more debt
A no-brainer. Though this alone won’t get you out of debt, at the very least, it won’t get worse. If you continue adding debt while trying to pay off the previous ones, you won’t make any progress in your finance at all.
Save for an emergency fund
Now stashing money away may sound absurd, as our goal is to pay off the remaining debt. Now you might say, hey I can use the money to pay for my credit instead. While this is a good idea, a lack of emergency fund would only cause you to accumulate more debt once you’re in a sticky situation you haven’t prepared for, thus breaking rule number 3 which is to stop creating more debt. So save up for an emergency fund worth 3 months of living expenses.
Increase your monthly payment
If you can and it’s within budget, it wouldn’t hurt to pay to increase the amount you pay monthly. Paying minimum will take you the longest route into freedom. And you would have already paid triple than what was owed the longer it takes you to pay if we’re counting interest. So come up with a strategy that lets you pay off your debts as soon as possible.