The average American carries over $96,000 in debt from mortgages, credit cards, student loans, and more. If you’re one of the 60% living paycheck to paycheck, managing even a portion of that debt can feel overwhelming.
Luckily, by following six simple steps, you can learn how to manage your debt better and breathe easier each month. Additionally, you'll learn how the help of a signature installment loan can help manage your debt.
6 Steps To Managing Your Debt With Efficiency
1. Stop Spending
The first step in learning how to manage debt is to stop racking up new, unnecessary debt. This includes all of the discretionary spending you´re doing on things you say you need when they are genuinely only wants.
If your downfall is credit card spending, remove it from your wallet and leave it at home. If you don´t trust yourself to do this, ask a loved one to hide the card and not tell you where it is unless a true emergency occurs. Avoid canceling the card altogether because this may negatively affect your credit score.
2. Realize What You Owe
Once you get your spending under control, take account of what you owe, to whom, and under what interest rate. Write down your debts in order from highest interest to lowest, prioritizing any debts you owe late payments on.
3. Consider Consolidating
Debt consolidation is when you combine your debts into one single payment. This can save you money and help you learn how to manage debt if you roll high-interest debt into a lower-interest consolidation plan. While an initial consolidation may negatively affect your credit score, you´ll see a positive jump once you start paying off your debt at a lower interest rate.
Debt consolidation is not an efficient approach for everyone. If your credit score is low, a consolidation plan may only offer you a high-interest rate. For those with debt less than 40% of their total income and a fair credit score, you may be able to consolidate your debt through a 0% or low-interest balance transfer.
4. Check On Your Budget
Review and update your budget to include all debt payments. Look for areas to cut back like phone plans, dining out, or transportation, and use those savings to pay down debt faster. Try our budget calculator to organize your spending.
5. Pick A Strategy
There are different ways of deciding which debt you´ll pay first. Most people suggest paying off high-interest debt, but if you have a few debts of smaller amounts you may want to clear them off of the table first and then face the high-interest ones.
6. Set Up Automatic Payments
Once you know how much you should be paying each month towards your debt, set up automatic payments as early in the month as you can. This will avoid reaching the end of the month with no money left over to pay off debts.
Other tips on how to manage debt include paying more than the minimum and making a payment more than once each month.
How Installment Loans Can Help Manage Your Debt
Sometimes urgent bills make managing your debt harder. Installment loans offer a flexible way to cover emergency expenses like utility bills, medical costs, or car repairs without adding new debt stress.
At Delaware Title Loans, Inc., our signature installment loans offer up to $1,250 with easy qualification based on employment and income. You can apply quickly and get your money the same day or next business day.
To learn more, visit our installment loans page.
How To Apply For An Installment Loan
Applying is simple:
- Fill out our quick online form.
- A representative will contact you to explain the process and schedule a meeting.
- Bring your valid ID, recent pay stub, and bank statement to your appointment.
- Receive your funds fast once approved.
Start managing your debt better today by applying for an installment loan.
FAQ About Installment Loans
How is a signature installment loan different?
A signature installment loan requires only your signature and proof of income, no collateral needed. It’s fast and convenient for borrowers needing flexible repayment.
Can installment loans help with managing debt?
Yes, installment loans can help you pay off urgent bills without adding high-interest credit card debt, giving you a better chance to manage your overall debt.
What are the requirements to qualify?
You must be 18 or older, have a valid state ID, proof of income, and a checking account in your name.
Get Your Finances Back On Track Today
It´s possible to learn how to manage debt while also paying urgent bills. An installment loan from Delaware Title Loans, Inc. may be the best way to handle your urgent expenses and face your finances with confidence.
Call us or use the quick online form to get your installment loan request started now. Our representatives are waiting to provide the emergency assistance you need today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
