People still believe that all financial problems will lead to bankruptcy.  However, a lot of possibilities are available to implement before you go for broke.  You will find debt-management plans that will give advice on managing your debts in a better way.  To have any debt management plan be effective, you will need to make sound decisions and discipline to keep to these decisions.


Debt Management Plans to Consider Helping you cope with the Debt Disease:

  1. Managing your Debt; the first major decision you will need to make is to freeze all your unnecessary spending. You should withhold all purchases that are not essential for your daily survival.  Do not use credit cards.  Delay any purchase that you do not need at that moment.  Try living below what you earn, or at least, break even.  This will encourage you to save whatever may be left at the end of the month.  Also, try to pay more than the monthly minimum payment on the balance of your debt.  Stop spending more, overspend, than you have.
  2. Prioritize your Debt Payments; there are debts that you will need to be paid before other. Credit card debts and those with high-interest rates should be tackled first.  Bad credit loans with high-interest rates should also be on your high priority list.  When you have taken care of the more expensive debt, you can start on the other debts.  There are good debts and bad debts, where the good ones will be your student loans and home mortgages.  Make sure that you keep your good debt record in order to ensure that you do not lose those investments.
  3. Debt Consolidation; may be a good option to consider. When you looked at all the factors that are included in your debt, you might find that consolidating them all into one loan can be beneficial.  You can repay at lower interest rates.  Loans towards debt consolidation are available from loan companies and banks.

Debt management, debt settlement, debt mitigation and debt consolidation are all possible solutions to your debt problems.  The spectrum of workable options is long.  Bankruptcy falls under extreme measurements and will only be considered as the very last outcome of your debt problems.