Finances Better

 Every person with even a little bit of debt has to learn how to manage their debt. If you have only a little bit of debt, you should make sure that it does not go out of control by paying up the relevant amount. On the other hand, if you have too much debt, then you must put more effort into paying them off.

Know how much you owe whom

Make a list of your debts, the creditors to whom you owe money, the total amount of the debts, the monthly dues, and the due date. You can make use of your credit report in order to confirm the different debts on your list. Make sure you refer to your monthly debt list, especially since you may have bills to pay. Update the list every few months whenever the amount changes.

Pay your bills off every month

Late payments make it tougher to pay off your debts since you will also have to pay a late fee along with them. Even if you miss two payments in a row, you would have to pay additional finance charges and interest rate. If you are using a calendaring system on your smartphone or on your computer, enter your payments over there and then, set an alert to remind you whenever the payment is due or a few days before the payment is due. If you end up missing a payment even by chance, do not wait for the next due date to pay up this amount. Otherwise, it would be reported to the credit bureau and it will reflect on your credit report. Instead, send your payment as soon as you can.

Create a monthly calendar

Use a monthly bill payment calendar in order to figure out which bills to pay using which paycheck. On your calendar, note down the number of days in which the next bill payment is due. Then, fill in the date of each of your paychecks. If you get paid on the same days each month, then you can use the same calendar for every upcoming month. However, if your paychecks fall on different days every month, make sure you prepare a new calendar for every month.