The Easiest and Most Effective Ways for Debt Management (cont.)
Contributed by Stephanie Litaker
Let's get started on your debt management program. Start by making a list of your current monthly expenses, everything from the school supplies for the kids to the cup of coffee at the trendy coffee shop you stop at every day. Track every dollar, nickel, dime and even penny you spend. This will give you a very good idea of where your money actually goes; face it, we've all wondered where all our money goes - and it's not between the couch cushions so don't bother looking.
After you make your list of current expenses, begin to look at ways you can cut back on what you spend every month. Whether that means you stop getting that daily cup of coffee at the trendy coffee shop, or you stop getting that extra scoop of ice cream, you need to cut back on your expenses if you want to have a successful debt management plan.
How that extra cup of coffee plays into your debt management program
After you figure out how much money you can save every month, it's time to put that money to work for you - you work for it, so it's only fair that it returns the favor sometimes. Every dollar you save should be put toward your credit card with the lowest balance - this is in addition to the normal payment you make. After you pay off the first credit card, but all of that money (in addition to the normal payment you make) toward the second credit card.
