Basic bill management - Beat that debt
Good organisation can really help with prioritising your debts
One quick tip for helping you manage your debt is…. management. Sounds obvious right? Well, one of the most important processes i teach people is how to take control of your life again and start accepting responsibility for your financial situation and managing your money more effectively is a great start. Follow these 3 simple steps to help with managing your finances.
If you organise your debt - it is easier to prioritise
A lot of people will throw all of their bills, receipts and statements into either a pile, or the bin. No wonder alot of the time you don’t know where your money needs to go or who you owe.
- Organise your bills into simple groups - By filing your documents into utilities, credit cards, bank fees, mortgage payments, urgent etc you can know exactly which companies you are dealing with, and which needs paying first. A simple folder and a few plastic sleeves are great for this.
- Create a spreadsheet with your outstanding debt on it - That way you can size up your situation, and hopefully see it gradually decrease over time.It also gives you a reality check - a pile of bills may not give you the full picture.
- Organise a priority to your bills - Label each bill with a priority from 1-10, a 0% interest credit card (3) can take a backseat while you pay off you 12.9% APR loan (9). Think about your current situation and assign a priority to each bill.
By simply changing the way you deal with your debt, you can help yourself to fully understand your situation. It may be difficult at first, but honesty and basic bill management is key to getting back on track, and into the black.
