Debt Management and consolidation – Carry Out by Yourself

Debt management is inevitable at the time when you fail to control your daily expenses. You can easily manage your debts by yourself without the help of an expert and you do not need to get negotiate with any agency. There are various useful steps that you have to take to manage and organize your finance.

The important steps are as follows:


Steps For the Debt Management:


  • First of all, check the statement that is issued by your creditor and evaluate how much amount you have to pay in debts. This means what interest rate has creditor fixed for you.


  • To find the total of the outstanding dues on your unsecured loans use the unsecured loan calculator. To calculate all the amount that you have to pay.


  • Enlist all your sources of income for debt management and make a priority order that which is first and which is last.

debt management




  • Prepare a monthly budget to keep your expense in control and to keep their record. Work on budgeting tips and use a budget worksheet to manage your budget. Try to make a lower budget plan that saves you from any disturbance in the future.


  • Check how much amount you are able to pay off monthly on your debts easily.


  • Prepare a list of accounts according to the priority of payoff in which you have to pay the lowest interest rate.


  • Mark the account that you want to pay off first. Opt-out the one account that contains a higher interest rate or that one that contains the minimum interest rate.


  • Pay off the account that you’ve decided to pay first with the lowest payment and some additional money payment that will not disturb your budget plans.


  • Don’t leave other accounts. Keep paying for others as well even in very low pay off besides paying a high amount for the account that you’ve decided to pay off first. So, that the creditor should not complain against you to any agency.


  •  After paying off the complete amount on the first account, add some amount to the payments for the second account that you’ve decided to pay off on the second number. The rolling of payment will save your time and help you to work easily with your creditors.


  • Consistently follow the list of accounts that you’ve prepared until you become debt-free.
  • If you have paid all of your debts and some money is saved so, don’t spend it on any lavishness but save it for the future problems that you may face from your creditors.

In this way, you can easily carry out debt management by yourself. If you think that you can’t carry out debt management by your self then you can contact a credit counselor to get help. A credit counselor will guide you to debt management and will provide you with a financial plan to solve your financial problems on little charges.

Make sure that you’ve consulted a certified credit counselor and to get information about certified counselors contact AADMO and AICA.

Debt consolidation:

People are facing financial issues because their creditor does not decrease the interest rate that a person could pay easily. They have to pay a high-interest rate to their creditor that makes them financially disturbed. If you are facing bad financial situations and want your creditors to reduce the interest that you are paying currently then debt consolidation is a better option. You can negotiate with your creditor and convince him/her to cut down a little on your interest rates. So, hat you get no loss on your credit.

To deal with such kind of situation, the following tips will help you to carry out debt consolidation by yourself.




  • Enlist all your debts that you are paying and also enlist creditors. Arrange your debts and creditors in an order of priority such as putting that debt on number 1 on the list that you want to get rid of first. It will make your work easier.


  • Check your affordability by calculating your income such as wages, child tax credit, child tax benefit, state benefits, working tax credit, etc. This calculation will help you to realize that how much monthly payoff you can afford to pay on your debts and what are the total taxes that you have to pay.


  • As I said earlier enlist all the creditors in the order of priority, that’s because after selecting one creditor contact him/her and negotiate and check whether that creditor holds your debt or he/she have sold off your debt to CA (a collection agency). For this process, you must know the right ways of contacting your creditors.

  • If your creditor has sent your debt to the collection agency then negotiate with them to validate it so that you can start paying all of your debts efficiently.

  • You must know the right ways to negotiate with your creditors and collectors to reduce the interest rates on your debts. Also, negotiate with them to reduce your monthly pay-offs on higher interest rates debts. This step is crucial because if you have to pay off more than that you can afford then this will ultimately ruin your financial situation but it is also very important may be the creditor does not increase the interest rate. All are the possibilities.

debt consolidations


  • You can consolidate your multiple credit cards through balance transfer if each has a small debt amount on it. You can carry out this thing by transferring all the balances on different credit cards on the one that contains lower ratepayers or 0% interest rates. By doing this you’ll only need to pay off single payments with lower interest instead of multiple payments and that would be very helpful to you.
  • You can save your money by paying a low-interest rate if you find a low-paying creditor.

All the above-mentioned tips will guide you to carry out debt consolidation by yourself without the need for any professional. While considering debt consolidation, search every available option in which the debtor and creditor both are convinced of an average interest rate.

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