4 Ways To Get Out of Debt and Manage Your Monthly Budget

numbers-money-calculating-calculationBudgeting and staying out of debt. It’s something we can all do better. We know that there has to be some kind of change, but do we really know where to start? Lucky for you, we did all the hard work. Now all you have to do is follow through on these great ways to manage your monthly budget better.

 

Automatic Bill Payment

 

Using an auto-payment service can save you time, stress, and money in the long run. AutoPayPlus offers a service that is unique because not only does it allow you to avoid costly late fees or manage your bills in one place, but also works with each of your lenders to implement an accelerated debt reduction payment schedule. AutoPayPlus helps to get you out of debt faster and potentially help to build you valuable equity and/or reduce total interest payments.

 

Never worry again about when your bills are due or the possibility of “snowballing” into debt. Get your loans paid off quicker and tailor your budget towards a life that’s debt-free.

 

Loan Consolidation

 

A loan consolidation can be attractive to people that are up to their neck in debt. Though the appeal of a paying a single monthly payment at a low interest rate seems like a promising one, it will probably cost you more in the long haul. The odds are that you won’t want to get yourself caught up doing a loan consolidation unless you’re truly and hopelessly drowning with high interest rates and high monthly payments.

 

But if that is the case, understand what your monthly payment will be. If it’s just as much, or higher but fits into your budget, you might simply want to consider paying off your bills on your own with increased payments. Otherwise you will probably end up paying more in interest payments, since your loan will likely be over a long span of time.

 

Debt Management Plan

 

Choosing a Debt Management Plan can help you stay organized and on time with your bills through realistic budgeting. Most financial experts recommend using a DMP as the best method for debt consolidation. Through this method, you send one payment to the agency running it and then the amount will be split amongst your creditors. This might affect your credit score, but once you have paid of your debt in 3-5 years, your score should definitely improve.

 

With the help of a certified credit counselor, you can be on your way to meeting your financial goals, improving your credit, and being in control of your finances.

 

Debt Prevention

 

The best way to manage your debt and your budget is to avoid debt in the first place. Of course, it’s easier said then done. But the earlier and faster you come to terms without the idea of smart budgeting, the earlier you will be living a life with less stress.

 

First understand why many people get into debt:

  • Reduced income
  • Poor Money Management
  • Underemployment
  • Gambling
  • Medical Expenses
  • Minimal Savings

 

What you can take away from these debt causes is that you want to put yourself on a strict and realistic budget that allows you to balance your income from your expenses. When you have extra money, put it into a savings account for those unexpected expenditures. Avoid overspending on things that aren’t necessities and be sure to plan. If you’re already in debt try one of the other three methods and when you succeed, don’t ever go down that road again.