Having Debt Management Trouble? Stop the Bleeding

A Credit Article Contributed by Brandie King

When you are having debt management trouble it is sometimes hard to focus on what you need to do to start getting out of it. The following article will help you learn how to determine where all of your money is going, as well as how to stop the bleeding. Follow the advice here and start dealing with your debt management trouble.

Debt Management Trouble: Where is Your Money Going?

Can you honestly say that you know exactly where your money is going each month? If you are like most people then you have a basic idea but don't know exactly. The first step in dealing with your debt management trouble is to figure out where your money is going. Gather all of your bills, credit card receipts, check register, bank statement, anything that might be a record of money you have spent. Pull out a piece of paper and a pen, or your open up favorite word processor or spreadsheet program.

Start by listing your fixed expenses, such as house payment or insurance. Next make a list of your variable and extra expenses, such as what you spend on gas and lunch everyday or going to the movies. Don't leave anything out, including that cup of coffee and newspaper you buy every morning.

Debt Management Trouble: Cut the Cost of Your Fixed Expenses

These include things like house/car payments, insurance payments (house/car/health), child care, credit card/loan payments, phone, cable TV, parking fees, Internet access, gym memberships, anything that stays the same every month.

See if there is anything you could reduce the cost of. Could you reduce the cost of your insurance by moving it to a different company? What about trying to negotiate with your creditors for better interest rates? Extra features on your phone or cable TV bills such as Caller ID, voice mail, call waiting, premium channel packages (HBO, Cinemax, etc), can be cut off to save money.

Debt Management Trouble: Reduce and Eliminate Your Variable and Extra Expenses

Variable and extra expenses include items like utilities, groceries and household item purchases, gas for your vehicle, breakfast/lunch/snacks while you are at work, going to the movie theater, renting movies, eating out, buying books/movies/music, clothing, home and car maintenance, vacations, gifts, newspaper and magazine subscriptions, pet care, donations (religious/charitable/other), anything that you buy that doesn't cost the same from month to month or isn't a regular occurrence.

Do the same thing with this list that you did with your list of fixed expenses. Find ways to save on your groceries each month, such as using coupons or preparing a meal plan and shopping list before going to the store. Car pool with others to save on your gas costs. Take your breakfast, lunch, and snacks to work. Don't go to the movies or eat out as often, stop renting and buying movies. Learn how to do basic home and car maintenance and save yourself those high service fees. You get the point, right?

Follow the above advice and you will be well on your way to controlling your debt management trouble.