Take Control of Your Consumer Debt 

Consumer debt can be the biggest detriment to securing a sound financial future. You may find yourself in a vicious cycle that seems hopeless to overcome. But with determination and a proper plan, you can take charge of your finances. 

• Identifying where your money goes is the first step toward gaining financial control. There are many good computer programs useful in tracking your money. In your analysis, don’t forget to account for spending from ATM withdrawals, cash, etc. 
• Develop a monthly budget and stick to it. Plan for periodic obligations like insurance and taxes. Make your budget rigid but achievable. Your monthly budget must include debt payments above the minimum required. 
• Make a list of what you owe (balances, monthly payments, interest rates, etc.). Consider moving your high-interest rate credit card to lower-interest rate cards, but be prepared for rate increases after the introductory period. Read the fine print carefully.

Which debt should you pay off first? One approach is to concentrate first on the debt with the highest interest rate. Once you’ve paid that off, cancel the account and focus on the debt with the next highest interest rate. If all your debt carries similar interest rates, focus on paying off the smallest debt first and then move on to the next largest. 

Taking control of your debt and learning to live within your means will enhance your chances for a sound financial future.

© Copyright 2000 Raymond S. Kulzick. All rights reserved. 001211.