Personal Debt Management Essay Example | Topics and Well Written Essays - 500 words - 1

Personal Debt Management - Essay Example ategy, but this was not the case because the debts were piling up and interest raised to unexpected amounts and this prompted me to have a debt repayment plan. It has helped me in keeping my expenditures and incomes in line, and I have reduced the amount I borrow and spend to pay for my necessities. Prior to having a debt management plan I would receive calls from my debtors every time because I was not able to make timely repayments and this would really disturb me since I had not learnt how to manage my finances. I would have my credit cards rejected when paying for food and other necessities, and this was because managing my finances was a hard task. The debt management plan has enabled me to manage my finances and now I can live comfortably knowing that all my debts will be paid on time without having to bring me discomforts and disappointments (Garman & Forgue, 2011). Currently I have debts from 3 sources, and they are my college loan, which amounts to $18,000, rent money, which amounts to $3000 and a medical bill of $500. To see that I ensure that my debt management plan gets me out of debt I actively engage in behavioral steps, which will see me out of debt. The first step I will undertake is to figure out my spending patterns and eliminate the unnecessary expenses which are bound to increase my debts. I will write down every expense regardless of how small it is, and this will help me in identifying my fixed and variable costs. After this, I will tally the expenses with my income, and this will be helpful in curbing my expenses since i will be able to eliminate the unnecessary costs. The next step will be to consider the amount I get from boosting my income through other income generating activities, and this will help me in knowing my surplus. The next step I will take is to make a list of all my debts and the interests they accrue, and this will help me in lightening my load debt. To practically implement this, I will use the basics of debt reduction,