Debt management is a topic that’s usually avoided but openly discussing this awkward subject with your loved ones can help them avoid a lifetime of financial woes. Here are a few of the basics:

Budget Crunch

Make a complete list of all fixed expenses such as rent/mortgage, car payments, utilities and groceries. Next, list variable expenses to see what can be reduced or eliminated.

Your Best Interest

Prioritize your debts so you can focus first on paying off high-interest, non-deductible debt such as credit cards and unsecured loans.

Consolidate

Monthly payments can be lowered by consolidating debt through a secured line of credit as the interest rate will usually be much lower.

Double Down

When unexpected money falls your way, put it towards paying down the principal of your debt as it will dramatically reduce the length and expense of your loan. 

Reach Out

Getting ahead of debt is key so be proactive and reach out to creditors before things get out of hand as they’ll often be willing to work with you to help make things more manageable.

Discussing debt can be uncomfortable, but doing so can help your loved ones avoid a financial crisis that could devastate their credit rating and prevent them from borrowing money at attractive rates.

Almost everyone feels the credit crunch at some point, but with the proper game plan in place, you can shake off the shackles of debt and pursue a path to financial freedom!