Personal finance management 101: Dealing with debt

Debt is one of the harshest realities Americans face. With only a fraction of the population debt-free, most Americans have to deal with creditors, and doing so can be both expensive and stressful. However, consulting with financial experts helps since they have the experience and knowledge in reducing (and perhaps even eliminating) debt. Yas Aloosy.

Here are three tips that when done diligently, could make a huge difference in reducing one’s debt.

Going after high-interest debts first: Some debts have higher interest rates than others. A quick review of contracts will reveal which creditors need to be paid first. Prioritizing these payments cuts the chances of paying more over time because of the higher interest. Once done with this, a person can go after debts with low-interest rates. Yas Aloosy.

Lifestyle check: A person with debt should take the time to reevaluate their lives. A lifestyle check will reveal just how much they are spending on stuff they could otherwise do without – at least for the time being. Cutting the purchase of regular luxury items and monthly (redundant) subscriptions may help a person save a good deal of money that could go to the debt payment. Yas Aloosy.

Alternate avenues for income: From part-time jobs (apart from the regular job) to side-projects, people with debt will do good to find alternate avenues for income. In this day and age, it’s easy to find freelance jobs on the internet. One can also learn another skill, which may be a good way to facilitate their entry to other means of earning much-needed funds. Yas Aloosy.