Managing And Getting Out Of Debt—Debt Consolidation And Counseling

Those in debt are often looking for ways to manage their debt and then begin the work to get out of debt.  While there are options like free debt counseling and debt consolidation loans, simply knowing you have a problem with debt or moving your debt into a bigger, lump sum may not be the best bet.

Many financial advisors say that getting rid of debt one source at a time is the best way to go.  Financial guru’s like Dave Ramsey say that by paying off the smallest amount of debt source you have first, you will be more able to get a better jump on the next debt source, and the next, and so on.

However, getting out of debt is one thing, but managing one’s debt is another fight entirely.  Managing debt means keeping what you owe less than what you earn.  This requires vast changes in the spending habits of many people who feel it’s easier to just charge on a credit card than to actually save money.

Yet, living within one’s means is going to be the only way to avoid debt or at least be ready when an unexpected cost arises.  Using a credit card isn’t going to be a bad thing as long as there is money in the cardholder’s possession or bank account for the purchase.  Saving money and then buying on credit will make charges easy to pay off and it can build a good credit history too.

Managing and getting out of debt is not easy, but anyone that is serious about doing so needs to be ready to put in the work, sacrifice, and savings that it takes in order to keep debt at bay.