Controlling your debt is a very important task and you must be able to manage the process as quickly and efficiently as possible. A good idea is to perform a clean sweep of your finances at least once or twice a year so that you know where you stand financially.
Gather Your Financial Records
The first step in performing a clean sweep is to get all of your financial records organized and in one place. Have one folder for credit cards you need to pay off, one folder for your mortgage payments and, if necessary, one folder for your kids college expenses. Once you have all your folders organized and in front of your face you need to review each one individually. A big part of controlling your debt is getting your credit card bills under control. You can do this by looking at the balance on each of your credit cards.
Start with the credit card that has the highest balance and work out a budget in which you can pay the account off, in full, as quickly as possible. Try to make more than the minimum payment every month if you can. If you are really struggling look into whether or not you can have the balance from your credit card transferred to another credit card with a lower interest rate. This can help you pay off your credit card debts much faster. If you need help with this you can consult a financial advisor on your own or turn to a credit counseling company. They can help you get your credit card debt under control and work towards eliminating it completely, which should be your ultimate goal.
Look At Any Tuition Bills You May Have
If you or one of your dependants has college expenses to pay, assess how much you owe and the best way to pay it. If your child is approaching college age you can help them see if they can get either a scholarship, a grant or financial assistance from the college itself. You have many options for getting out of debt that was racked up by college tuition bills. Explore these options and figure out which one will work best for you.
Reassess What You Spend Money On
One good way to make a clean sweep of your debts is to reassess where all of your money is going. If you are in debt over car repairs, see if you can trade your car in for one that is cheaper or even sell your old car to a mechanic. The key to doing a clean sweep of your debt is to cut down on expenses and start living within your means.
No one wants to be in debt, so performing a yearly, or even twice yearly, sweep of your debts will help keep you organized so you can work on eliminating the stress of being in debt from your life. Managing debt does not have to be hard if you are careful.
Amanda Spencer is the mastermind behind this article. When it comes to financial advice she always recommends