To manage debt efficiently one should firstly look at all the underlying lifestyle causes rather than just attempting to treat the symptoms, as it were. look at what caused the problem in the first place and take steps to address that rather then just try and get out of it when you're already up to your neck in it. How did you get yourself in debt in the first place, how did you manage to spend above your means and end up in a situation where you are now paying back probably a huge amount of what is essentially non disposable income, on a monthly basis?
If you're anything like myself then the cause wasn't really overspending or living a lifestyle that far outweighed my means. I wasn't driving around in a ferrari or spending money like water at casino's or lapdancing clubs. It was simply a case of trying to live in a normal fashion and trying to pay bills, pay for general living expenses and manage a normal life. It wasn't helped by working for three years in a job that didn't really pay what it should have done however but that isn't really any kind of excuse. you budget to live within your means, so how does it happen?
Debt problems can creep up on the best of us and for those of us that don't keep as tight a rein on our money as a parliament bookkeeper, crippling debt can catch up with us faster than you can say IVA.
The first thing I did was sat down and got out the income and expenditure form. Its vital to take an honest look at what you have coming in, what you have going out and what is essential and non essential. You'll be surprised at what you can do without when you have to! The second thing was not to hide my head in the sand. Its important that you contact your creditors and offer some sort of repayment, most are glad of the contact and will be happy to accept some sort of repayment however small. Otherwise the debt can spiral and get worse and worse and can eventually end up in court. If you have difficulty doing this yourself then approach a professional body. Organizations such as the citizens advice bureau, consumer credit counselling service or the insolvency helpline can all help with free and impartial advice and assistance.
Debt doesn't have to be the end of the world. It can be frightening and in some cases can affect your health and well being. It does however need to be dealt with and however you got in the situation in the first place, take a look at your lifestyle, spending and habits and try to make cutbacks where you can. It will all help.
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