The average American has over $96,000 of debt including mortgages, credit cards, and student loans. If you are one of the 60% of Americans who live paycheck to paycheck, handling even a small portion of this amount can become overwhelming.

While it may seem like a high mountain to climb, you can use these 6 steps to learn how to manage debt effectively and breathe a little easier at the end of each month.

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

Now it´s time to create a realistic budget. If you already have a budget in place, it´s time to update it and accounts for all of your debt.

Find the areas in your life you could cut back spending and immediately allocate the difference to paying down your debt. This could include getting a cheaper phone and internet plan, applying for state or local assistance for your utilities, eating at home instead of out, and carpooling or taking public transportation to save on gas.

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.

Do I Pay Debt Or Pay Off Bills?

If you´re on a tight budget and need to decide between paying an urgent bill or paying your debt, Delaware Title Loans, Inc. offers a potential solution through an installment loan. You can still make your monthly debt payments by using an installment loan to pay overdue utility bills, emergency travel, healthcare bills, or urgent home or car repairs.

Paying Urgent Bills With An Installment Loan

Installment loans are paid back over time with regularly scheduled payments. Delaware Title Loans, Inc. offers signature installment loans of up to $1,250 for those who need money fast.

Requirements

To get an installment loan from Delaware Title Loans, Inc., you´ll need to be 18 years or older with a valid state I.D. Applicants should be employed, proving so through their most recent pay stub. You´ll also need to show a bank statement for a checking account in your name.

How To Apply

To apply for your installment loan from Delaware Title Loans, Inc., fill out this quick form so that our representative can get in touch with you. When you receive their call, they´ll walk you through the first steps of the approval process and arrange a meeting at one of our local offices.

When you arrive, be sure to provide the three documents listed under “Requirements” listed above. The representative will use those requirements to determine your eligibility. If approved, you will receive your money that same day or the next.

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.