Debt can be represented by a loan note, bond, mortgage or other form stating repayment terms and, if applicable, interest requirements.
Debt is one of our main problem in finance. The debt management is important to ensure our finance in good condition.
Here’s some basic tips to manage our debt :-
1) When you want to borrow, you are advised to borrow according to ability / paycheck to repay.
2) Keep your debt (home loans, car and others) should not be exceed 30% of the amount of your net salary.
3) If you make payment for an expensive item, you can choose to pay through easy payment scheme provided by your credit card issuer. The scheme helps you todividing the purchase cost over a period of time, for example, without incur any financial cost if you pay on time.
4) You can reduce your loan balance if you have excess money, for example; from bonus payments. This is to reduce the financial charges on your loan balance.
5) Prepare a budget plan and spend according to plan. In this way, you can know your expenses and could avoid overspending.
6) Start savings by having a savings plan as it can reduce the need to borrow for small purchases.You also need to raise emergency funds should be sufficient to cover your fixed expenses for the period of 3 to 6 months.
Source :- Fomca
Do you want to know how to get out of debt ? Read 7 Tips to Success