As mom always said “practice makes perfect” and the same is true for money management and debt relief. Many people don’t end up in bankruptcy because they ignored the warning signs or turned a blind eye to their debts, it is usually because they lack the knowledge to manage their finances appropriately. There are a few simple tricks to become an expert on debt relief.
Keep Your Eyes Open
In order to know when you need help, you have to be able to identify when there is a problem. This takes focus and practice to recognize at times. In general, you want to look for certain patterns in your finances:
- Have you overdrawn your account one or more times in the last six months?
- Have you missed any payments on debt or credit accounts in the last year?
- Is your total debt balance more than 50 percent of your total credit limit on any one credit card?
- Are you in the habit of charging non-essential purchases to your credit cards?
- Have your creditors applied any penalties to your accounts in the last year?
- Have you ever used one line of credit to pay for another debt balance?
Ask For Help
One valuable resource that is rarely recognized or used outside of bankruptcy is a credit counseling course. They provide information to help educate consumers on tips and tricks for managing their money and staying/getting out of debt. A credit counseling agency can provide free information to help anyone get a plan to get out of debt, and also offer their helpful courses for around $100. Once you have learned some new tools for debt relief, put them into action. Nothing says “expert” like a true testimony of first hand experience.