This blog isn’t just for the business people in the world, this is supposed to be accesible for everyone that wants to be smart and business savvy.
Sometimes, being business savvy means knowing the world of business as an individual so you can use it to your advantage in your personal life too.
A lot of people come to me to ask about help managing their debt that has arisen from bad decisions. They want to know how these businesses work and how their monetary lives work so they can be in a better position.
So, this page is going to give you a little insight into steps you can take to start managing your debt smartly.
Prioritise Your Debt
This is a main point when you’ve got an overwhelming amount of debt from multiple sources. It’s important to pay off your debts in the right orders as some debts have more severe consequences than others.
If you’re struggling to organise your repayments, take a proper look at your debt sources and split them into priority debts, non-priority debts and debt emergencies.
Debt emergencies can be classed as those that are an immediate threat such as court, bailiff action, disconnection or eviction. Get a debt advisor sorted and get them done.
Start Small and Begin to Cut Back
It’s likely that your debts arose from a dire need, but there’s no need to beat yourself up about it. See what it is you’re spending money on and see where you can begin to trim the fat. Put every penny that you save into paying off your debts.
It may also be worth looking into the options you have in the form of debt consolidation loans. Getting your debt into one place could be easier than trying to manage multiple loans and debt from multiple sources.
Declaring Yourself Bankrupt
Declaring yourself bankrupt is the last action you should take when it comes to your debt management. It allows you to make a fresh start and writes off any debts that you currently owe – sounds great right?
It does sound great, but you need to consider that this bankruptcy will remain on your file and can and will go against you in the future when it comes to future credit etc.
You’ll also need to prove that you can’t afford to pay off your debts and it will be externally audited.
Find Out More About Debt Management
While a lot of our posts here at The Business Online are focused on business, I also deal with personal finance and advising on how to become a personal finance hero.
If you have any questions regarding your situation, I’ll be more than happy to assist you in any way I can. If you are struggling with debt, make sure you talk to a proper debt advisor to make the most of your situation.
You can send me a message by using the contact form you can find on my Contact Me page – I look forward to hearing from you!