Create your own debt management plan

When you want to get out of debt you can either try your own plan, or get help from a company.

07:26 29 January 2014

If you are looking for a debt management plan, you should consider whether or not having a debt management company is the right thing for you and your finances. You may be better off developing your own plan to become debt-free. Here are a few points to consider if you are wondering which avenue would be better for you. 

 

• If you prefer to have more control over which companies get the majority of your extra money, you should definitely develop your own plan. You may even get out of debt faster if you are able to pick and choose which debts will give you the most immediate reward once they are paid off.

 

• If you do not really want to worry about which companies to pay, or negotiating separate payment arrangements with the various companies you owe, than it might be more beneficial to let a debt management company handle all that for you.

 

• If you do not feel you can handle the stress involved when conversing with creditors or collectors, or if you have a medical condition that requires you to avoid stressful situations then it might be a very good idea to opt for a debt management company.

 

• If you feel comfortable with numbers and know how to reconcile your accounts to ensure that you are not overspending, you should be able to deal with creating your own debt management plan.

 

• Organisation is one of the skills that are absolutely necessary for successful financial management. There are many things to keep track of such as multiple due dates, interest rates, terms and fees. There are even sometimes semi-annual or quarterly charges that you need to remember. Technology makes it a lot easier to deal with keeping track of all this information online, but if you do not feel comfortable choose a debt management company.