A Guide to Credit Debt Management
Contributed by Melanie Vannuys
A Guide To Credit Debt Management
Credit/debt management is probably one of the most daunting tasks we as Americans have to endure. Using the "buy now/pay later" philosophy is so tempting, that few of us are able to turn it down. The most common type of the buy now/pay later plans is the credit card, but our mortgage, car loans, student loans and small business loans all fall under that same category.
While credit is definitely an important part of our day-to-day existence - we use it to reserve hotel rooms, buy plane tickets, rent a car, etc. - we have to know how to properly manage our credit and when it turns into debt, we have to know how to manage that, too!
Credit management, quite simply, means successfully managing your credit by paying your off your debts according to the agreements. Doing this means living within your means - establishing a budget and sticking to it. How you handle your debts is reported to each credit bureau and making untimely payments results in a negative credit history that stays on your credit report for up to ten years.
Credit card companies and banks aren't the only ones who will review your credit report. If you're trying to get an apartment, the leasing manager will run your credit report before agreeing to giving you a lease. If you're applying for a job, a potential employer may obtain a copy of your credit report to see how responsible you are.
Now I Know What Credit Management Is, What About Debt Management?
Debt management and credit management are similar. Debt management means paying your debts in a timely manner. Always try to send your payments out at least two to three days before the due date to ensure promptness.
If you can't make your payment on time, call your creditor immediately and tell them your situation. Don't bury your head in the sand and think your problems will go away on their own - they never do. Most creditors will gladly work with you - maybe allow you to pay half of the payment now and the remainder next month. The point here is: maintain contact. Not doing so will only increase the problem and make your creditors angry. If they don't know there's a problem, they can't work with you.
