5 Tips on Managing Debt

Close your eyes, imagine and believe you are completely debt free and make this affirmation aloud – I am debt free!!  This is the first and most important thing to do as you start working on what you imagined and believe.

Debt snowball

Dave Ramsey is one of my favorite authors who has written a number of books on financial freedom.  One of the methods he advices and I believe is extremely effective is the debt snowball method. This method is fairly simple which works with attacking the smallest debt first, getting that paid off and then you have more to put towards closing the next.  This continues for the next debt and sets the motion like a snowball.  The key is to stay committed to use that extra amount towards the next debt and not using that extra amount on something else.  This method helps one to quickly get out of debt.

Talk to the banks

Many of us just don’t want to take those calls from the banks informing us that our payments are due or in some cases overdue.  Fear is the number one factor that keeps us from approaching the banks.  By constantly negotiating with the banks, you will eventually get a great deal to restructure.  It is crucial to keep the dialogue ongoing and not try and avoid or stop communication at any cost.  This also reflects badly on you as a customer.

Numbers on paper not in the head

Create a game plan (budget). It takes a lot of discipline to do this but once you get into the habit you feel so liberated and in control.   You can see where you can cutback and have more to use.

Have a sheet on your debts with detailed information on bank name, amount taken, rate of interest, paid to date, amount to be paid, monthly payment etc. The more detailed the sheet is, would help give you good clarity at the time of negotiating with the banks.

Get rid of your junk

This is one thing we women know, we do have in excess.  Your amazing collection of clothes and shoes which are sitting unused in your closet can get you a good amount of money.  It could be anything that you can sell and make money and also get your house organized by decluttering. As they say – every cent counts.


One the best ways to be debt free is to give.  May sound strange but this does not need to be money, but your time or energy or advice.  It’s a universal law, when you give you receive, you sow and reap.  Get yourself out of debt and show someone else the way to do it and pay it forward.      

Margaret Mekaat

Margaret Mekaat

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