DEBT MANAGEMENT

​Everyone with even a little bit of debt has to manage their debt. If you just have a little debt, you have to keep up your payments and make sure it doesn’t get out of control. On the other hand, when you have too much debt, you have to put more effort into paying off your debt while juggling payments on the debts you’re not paying right now.

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Don't expect to live a debt free life. 
While it is possible, understand that most people will increase in debts as time goes on as they begin to go through life's financial challenges such as buying a home or raising a family.

Good Debt versus Bad Debt
​Simply put, Good Debt is a true asset that puts money in your pocket while a Bad Debt is a false asset that takes money out of your pocket. ​A good example is a house, most people think it is a good debt but that is  only true if it is providing a positive cash flow to you, for example it gets rented out. Another example is having a business which is generally considered good debt because while it may have a startup and maintenance cost associated with it, it is expected to on average to have a profit.

Educational Debt
While we are believe in the merits of college education, College may not really be as good of a debt as it once was. Consider that it may take a very long time to come out of financial hardship that educational loans create, especially if the degree comes with a hefty price tag. By the way, you cannot ever default on these loans which make them particularly scary.

Recognize the signs that you need help.
If you find it hard to pay your debt and other bills each month, you may need to get help from a debt relief company, like a credit counseling agency. Other options for debt relief are debt consolidation, debt settlement, and bankruptcy. These all have advantages and disadvantages so weigh your options carefully. For a no obligation review of your finances, feel free to Contact Us.