Feasible Debt Management Tips to Follow in 2013

Is it possible for a person to lead an absolutely debt free life? Thinking realistically, it is next to impossible for an average person to be free of any debt. However, the next best thing to leading a debt free life is to manage your debts in a smart way so that you do not make a mess of your life as far as your finances are concerned. Keeping a close watch on your spending and having a good idea about your debt can help you plan your finances better. However, not all debts need be considered unhealthy, debts due to back payments on your credit card dues or installment loans can be considered as debt that you can do without. However, a mortgage can be considered as a debt that is good for you as is a college loan as you will be creating a permanent asset for the future.

You need to sit down and seriously calculate based on your current income and future income that you expect. Take stock of your existing debts and the period of the existing loans like mortgage loans. If it is a college loan that you are burdened with, you have all of 11 years to effect the repayment. There can actually be no other large debts other than a college loan and a mortgage. All other debts are the ones that pile up from small purchases that you do without stopping to think if you really need the product or service. Is the weekend bash you are planning essential, or can you manage to stay back at home and celebrate on your own?  Try to keep track of the small purchases you make at the local grocer’s or druggist’s and maintain a ledger where every single penny is accounted for.

You could be a spendthrift with an uncontrollable urge to spend, especially on impulse. In that case, you need to stop and reconcile and change your spending habits. If every time you browse the Internet, you are tempted to visit an online marketer’s site and buy some trinket or other that you actually do not need, refrain from browsing for some time. While passing by a knick-knack store, if your curiosity gets the better of you and makes you pop in to scan the displays, you may end up buying something on impulse. It would be better to change the route for a few days, bypass the particular store, and avoid the unnecessary spending.

If you are at odds about how to plan your finances, it is worth investing some money and buying books that give you valuable financial tips. Alternatively, you can browse the Internet and download a lot of information on how to effectively manage your finances, and avoid falling into a debt trap. Try talking to your friends and family, especially the ones who are frugal in their spending, and try to pick up a few tricks on how to manage your finances.  For instance, a common tip is to focus on clearing of debts that attract high interest, like a credit card debt.

You could explore the possibility of shopping with coupons, which helps save a lot of money. It is just a bit of extra effort you need to put in and be on the lookout for offers in your location. There is bound to be a clearance sale or discount sale where you can save a considerable sum of money, shopping for essentials. However, remember not to purchase things just because they are available at a discounted price, you need to buy things that are essential.  Such planned spending and prompt repayment of existing debts will help you prevent adding new debts, and lead a debt free life this year.

 

This is a guest post by Jake Anderson of fastinternetdeals.com, a site that offers savings and current information on http://www.fastinternetdeals.com as well as att.com services.