Finding Good Debt Advice

Most people seek debt advice from independent third party resources such as magazines and websites, debt management companies such as debt free direct or even from friends, family or colleagues who themselves have had past debt issues. It is these sources that can help advise you on the best course of action when it comes to managing your finances.

One thing that all of the above sources will tell you is that it is all about the management of your debt. The total amount that you owe is irrelevant, it’s all about how you manage it and most importantly, how you make the payments you make each month have the most effect on the debt. This might sound obvious, but most people are completely oblivious to where there month to month debt payment goes and how that money is being allocated when it gets there. Good debt management is about meeting payments on time and when you do make a payment, having the highest amount possible of that figure going against the debt itself. It’s all about the interest.

To find out how much of your payments are going on the interest only and lining your creditors pockets, you need to work out how much you’re paying a year and work out the APR of the debt. You will then be left with a figure to deduct from your yearly payments.

This figure, the interest figure, is what you need to try and get as low as possible. You can do this a number of ways. If it’s credit card debt, you can look for a card with lower interest or even 0% interest and switch your balance over to that. If it’s a personal loan, you might want to consider finding another lender with a better deal. If it’s a combination of various debts you could consider debt consolidation. A specalist debt management company such as debt free direct would be able to advise you on the best course of action.