Many people living with debt begin to feel the pressure when collectors start calling or they receive a foreclosure notice. While taking action to resolve debts is a good idea, there are other ways of managing money and debts that could be more effective. A smart money manager knows how to recognize a problem before it strikes and the tricks of the trade for debt management.
Playing By The Book
Although financial experts may give different advice and opinions on how best to manage debts, they can agree on some consistent habits that lead to a financially healthy lifestyle.
Know When Help Is Needed — many people wait until they miss a payment or can’t afford to purchase essentials before taking action. The best way to stay financially healthy and out of the hands of creditors is to keep a close eye on one’s finances. Setting and following a budget, identifying trouble spots and monitoring debt payments is essential for keeping on the right track.
Consult An Expert — before contacting a creditor to discuss options or negotiate a plan, it is wise to consult with an expert. A foreclosure attorney can help review foreclosure or mortgage modification options and even help negotiate with the lender. A credit counselor or debt negotiation specialist can provide valuable information about managing debts directly with a creditor or through bankruptcy.
Keep Communication Open– in order to successfully resolve debts or stay in good financial standing, it is important to stay in contact with creditors and lenders. Contacting them before financial hardship strikes or payments are missed can increase the chances of successfully negotiating a deal. Most lenders look more favorably on debtors who take action sooner rather than later and have an organized plan of what type of deal they need to achieve their financial goals.