Debt Management

This is a guest post for Go Banking Rates by our friends at TFC Debt Solutions

Are you struggling with overwhelming credit card debt? Are you losing sleep because youre wondering how youre ever going to come up with the money to pay those bills?

Youre not alone. Many people have lost jobs, are upside-down on their mortgage, have suffered medical issues resulting in unmanageable bills or simply cannot get past the high interest credit card payments and payments that are due every month. Struggling with credit card or any debt for that matter, can be a very difficult and embarrassing situation; but there is something you can do about it.

Here's our plan for managing your debt:

Stop Being Overwhelmed

First things first. You have to get out of mindset of being overwhelmed.

Take charge, take responsibility and control. The easiest way to initiate this change is by grabbing a pen and a piece of paper.

Assess the Situation

Now lets assess your situation. How much money do you have coming in?

Can you count on that money every month, or is there a chance that there could be less than you expect coming in? Be conservative.

Make a Budget

Now grab all your bills and make a list of your monthly expenses. Do your expenses exceed your earning ability, or do you have as much coming in as you do going out? If the answer to either of these questions is yes then you need to do some prioritizing.

Necessity versus wants. What is most important to you? What are the things you can do without?

It is important to make sure the rent or the mortgage is being paid? Some people make the mistake of paying their credit card bills before the mortgage or their rent. If your primary needs (i.e. shelter, food, healthcare) are not being met, everyone loses and no one gets paid. You need to prioritize to find out what is really worth spending your money on, especially when your money is in short supply.

If you would like more information on ways to reduce your debt, or if your situation has gotten past your ability to overcome it, please visit TFCDebtSolutions.com, and find out the options and alternatives that are available to you.

Dealing with credit card debt can be daunting, but dont let it run your life!

For many recent college graduates, managing debt while starting your first job can be tricky.

First jobs are not notorious for their outstanding salaries, and you may be living so close to the limit of your financial ability that one emergency purchase such as a car breakdown or unexpected bill can push you right over the edge.

In addition, most recent college graduates have taken on student loans, so you may be starting out your professional life already in debt. If you have a credit card from a bank or store, that can add to the bill.

But all is not bleak, and with some rudimentary money management skills, you can get a grip on debt even when you aren't making a whole lot of money. Here are a few ways to get a handle on debt before debt gets the better of you.

Get a spending plan

First, take a look at your expenses and see where you are spending your money.

As your life changes, your expenses will change with it and there will be major and minor purchases associated with your new job. Sure, you need to trade in your sweatpants for a new work wardrobe, so you should make that expense part of your spending plan. But do you really need a new car now? If your old one is paid off, can you live with it for a while longer? Or is a certified used vehicle in your budget?

It may be tempting to open up new credit accounts or take on new loans now, but you might be better off putting that money toward your existing debt or even better, saving for the future.

Times really tough? Think about getting a forbearance

Speaking of existing debt, if you are in dire financial straits, it is possible to work out a forbearance plan for your student loan debts for six months to a year while you get on your feet.

Even if you have a job, most student loan lenders will work with you while you are experiencing economic hardship. However, its important to remember that, even with a forbearance, your loan balance is still earning interest that is being compounded yearly.

So if at all possible, make your payments and pay down that debt, because it can snowball out of control while you are not looking.

A charge off is the term lenders use to describe an account that has become delinquent. When a person no longer makes their monthly payments on a credit card, for example, the issuer of the credit card will declare it a charge off and shut down the account.

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