Personal Debt management

[Yakub02]

Management generally is the act taking proper control of a particular activity or entity with a view to deriving maximum benefit from it without any adverse effects .
Debt is any financial benefit derived today with a view to repay in a deferred future time .

Debt can be incurred either as an individual or corporate entity. If it is monetary in nature, it is called while it is called debt if it is measured in financial value.
The general word for any deferred payment be it financial or otherwise it is referred to as Debt.
Personal debt are debt entered into to meet up with some basic personal needs of life like food , personal business, education, shelter, clothing etc.
One can engage in debt when resources are limited to meet the needs . This is common in an undeveloped nation where the leaders are not up to the required competence.

Debt sought from organization or individual must be done in such a way as to have binding condition like date it repayment, signature, evidence of loan and sometimes the witness.
Proper management starts from taking loan or involving in debt that is not beyond our capacity be it a salary earner or a business person.

The date should be carefully monitored by the debtor in order to avoid embarrassment and lack of credibility. Credibility will bring about good record to be able to be getting more benefits in Future.

Other aspect of personal debt management that must be well managed is the area of not getting loan for frivolities, something that is not compulsory to possess.

Also it is better to be taking loan for business when it is clear to us that the business will pay back both the capital and the profits with the frame time of repayment.
If one fails to carry out proper feasibility study on the intended business, it may rubbish the loan idea and turn it to exercises in futility.

 

[Holicent]

Personal debt management is the process of effectively managing your debts and financial obligations. It involves creating a budget, setting financial goals, prioritizing debts, and developing a plan to repay debt in a timely manner.

To start, it's important to gather information about all your debts, including the amount owed, interest rate, and minimum monthly payment. Then, prioritize your debts by interest rate, paying off high-interest debt first while making minimum payments on lower-interest debt.

Setting a budget and sticking to it is key in personal debt management. This involves tracking your income and expenses to determine where your money is going, and finding areas where you can cut back on spending.

Additionally, consider seeking out additional sources of income or negotiating with creditors to reduce interest rates or monthly payments. Refrain from taking on additional debt while paying off existing debt, and consider consolidating debt through a personal loan or balance transfer credit card.

It's also important to build an emergency fund to cover unexpected expenses, so you don't have to resort to using credit cards or taking out loans. By consistently following these steps, you can successfully manage your personal debt and achieve financial stability.