Debt can be a real hassle. Here, we have identified some tips that may help you better manage your debt:
1) Draw up a table that reflects your monthly salary and expenses. This will act as your budget sheet. List everything that is chalked up in your expenses and you will then be able to clearly see what your spending patterns are like and where you can spend lesser. This may seem daunting at first but once you make it a habit, it will come naturally and can really be a great help in budgeting and managing your financial situation better.
2) Generally, it is advised that your monthly debt commitment should not exceed 35% of your gross salary every month. However, if you are already struggling to pay your debts, make sure you make it a point to go below 35%.
3) The best way to manage debt is to as much as possible pay off your instalments on time. This may sound like a no brainer but failing to do so will mean you chalk up even more debts when you incur late charges.
4) Perhaps your budgeting is working and you realise that you do have a little more to spare now, try to increase your regular payments or pay more in a lump sum if you can. This will help you clear your debts more quickly. However, always check the terms and conditions if you cannot keep this up longterm.
5) A good way to manage debt is to clear the debt that charges the highest interest first.
We hope you find the above tips useful! Good luck!