Most people have a debt of one type or another. This debt may come in the form of a credit card, mortgage, car loan, or it may simply be twenty dollars that were borrowed from a friend last week. However, some men and women find their debt has accumulated to the point they need to take steps to bring it under control once again. Fortunately, there are ways a person can professionally manage their money so they can rid themselves of the debt and look forward to a better financial future.

Debt Consolidation

One option to consider is a debt consolidation loan. Taking out a loan may seem counterintuitive when a person already has debt. However, the funds obtained are used to pay off the current debt and allow the borrower to have only one payment each month instead of many. In addition, borrowers often find they are able to lower their interest rate by obtaining a debt consolidation loan and the payment is frequently lower than what they pay on the debts individually. For additional information on the benefits of debt consolidation, view more at King of Kash.

Know How Much is Owed

Debtors often want to keep their heads in the sand and not acknowledge how much they truly owe. Doing so is a mistake though. Every person should be aware of their net worth, as it can be of great help when doing a monthly budget. Simply sit down and write down one’s assets and one’s debts. The assets should have more value than debt. If they do not, then the debtor needs to work to change this. To accomplish this, he or she will either need to bring in more money or pay down the debt.

Shop Smart

Don’t buy something on an impulse. When it is determined an item is wanted or needed, try to wait 30 days before actually making the purchase. For example, a woman may decide she needs a new pair of shoes but they cost $300. Don’t spend the $300 the same day. Step back and consider the purchase for a period of time to see if the shoes are truly wanted and needed. Not only does this prevent a person from buying something he or she truly doesn’t want or need, but it also gives the individual time to look for a sale or find coupons to help bring the price down.


Once a person knows how much he or she is bringing in and how much is owed, a budget is needed. People typically don’t like to be told what they can spend on different things so they avoid taking this step. However, a budget is of great help in bringing debt under control and may be of great help in determining where cuts can be made to achieve this goal. Remember to include irregular expenses when creating the budget. This includes items that must be paid only a few times a year along with unanticipated expenses such as household repairs.

Cut Up Credit Cards

Research shows consumers using a credit card spend more than those who pay with cash. If a person carries cash, he or she is automatically restricted in what can be spent. When creating a budget, set up different envelopes for each category in the budget and put the corresponding cash in the envelope. Once this cash is gone, no additional money can be spent in the category until the next paycheck arrives. For many, this is an eye-opener as they learn they are overestimating in one or more areas of the budget and underestimating in others.

Track Spending

A person cannot bring his or her debt under control without knowing how much money is actually being spent. For this reason, spending needs to be tracked every month to see where excess money is going out the door. The envelope system can be of great help with this. Not only does the system show where the funds are going, but each envelope may also be used to further break down where the money in a particular category is spent. For instance, a person may use a portion of their gas funds for coffee purchases when fueling their car. This expense can be tracked right on the gas money envelope to determine if the person is spending more than he or she anticipated on impulse buys at the gas station.

Insurance is a Necessity

Insurance is something every person needs to have, whether it be car insurance, health insurance, or renter’s insurance. While this type of protection isn’t meant to cover all vehicle expenses, doctor’s visits, or damage to a rental property, it becomes of great help in the event of a catastrophe. For example, a car accident can be very costly if the owner doesn’t have insurance. The bank doesn’t care that the vehicle was wrecked. It still wants to be paid for the car and this is where the insurance comes in to help by covering the cost for the debtor.

Set Goals

One way to keep a person motivated when getting out of debt is to have clearly established goals. For some, the goal may be to purchase a new car and put down a larger down payment when doing so. Others may be looking to fund their child’s college education and set this as a goal for paying down debt. Regardless of what the individual is working toward, having a clear goal makes it easier to pay down the debt because he or she knows what they are working toward.

Getting out of debt isn’t easy. However, as a person moves forward with this process and reduces his or her financial burdens, the feeling of relief that is obtained is priceless. Begin using these steps today so you can look forward to a better financial future. If you become discouraged, don’t give up. There will be setbacks but if you keep pushing forward, you’ll find you can and do make progress which will provide you with the motivation you need to continue. The difficulties you encounter are worth it in the end.