Everyone has experienced borrowing money once in their life. It can be a quarter for a vending machine or a huge amount to cover important expenses. But there are instances when it gets out of control and the debt acquired become too much for someone to handle. If this issue left unresolved, an individual will have to face the consequences, legally and financially.
That is why it would be best to manage it before it becomes a problem. If you are paying some dues to a lending company or a person, here are some easy pointers you can follow to manage your dues:
- Determine the amount that you owe
The first thing that you need to know is how much do you owe and to whom you should be paying your dues. Knowing the exact amount would help you to make a viable plan to resolve your debt issues. Make a list of creditors, how much do you owe them (with accumulated interest), the monthly payment schedule, and the date the amount is expected to be paid in full. The list would help you see the big picture and how big the problem is.
- Make a payment strategy
Once you have the list, you can now start doing the payment plan. Most companies who offer debt consolidation in Dubai would suggest to categorize and rank your debt and creditors according to due date and amount. Naturally, you have to pay first the ones who have the nearest due date. Then plot who’s next in line in accordance with your plan. Having a payment strategy would help you track your progress in terms of debt payment.
- Create a monthly tracking schedule
Apart from the strategy, you need to have a monthly tracking schedule to see if you are making improvement in your debt management. This monthly tracking schedule should include the remaining balance and the date when the debt collectors will be paying you a visit to collect. Be aware of the dates and be sure not to miss a payment. The same goes with your monthly utility bills. Skipping your payment on utilities can mess up your budgeting.
- Have an emergency plan
This may sound a little off since you are paying your debt and saving money might be next to impossible. But an emergency plan can serve as a fall back should there be any urgent financial crises you need to deal with. Having an emergency fund would save you from using the money allotted for your dues.