5 debt management tips

It is never a great feeling when you are burdened with debt. The thought of having to pay your creditor can sometimes be frightening. If you are one of those who have a debt collector Singapore knocking at the door asking for money you have no idea about, you definitely need help.

This post encircles the key aspect of debt management that will help you understand the mistakes you might be doing while managing your debt. It could be that you are not managing your debts at all. Regardless of what blemishes there may be, you need not to worry.

One of the common reasons why people face a hard time managing debts is that they do not keep a proper check on the cash flow and they are unsure how a debt collection service usually work. Sometimes the debt is borrowed for unnecessary wishes. It just keeps weighing you down.

We have highlighted for you some of the major aspects of debt management that will help you to pay off your debts and save you from embarrassment the next time debt collectors knock at your door.


Keep a Note

There are many tips to make your debt management easier and here is one of them. Whenever there is a new debt that you take up, make sure you note it down in a diary. It helps you to manage your finances so that know how much you have to spend in a certain time. If you do not keep a note of your debts, it is a high probability that you end up with more depression and worries.


Pay the Most You Can

It is always a good practice to pay your debt as quickly as possible. If there comes a time when you can pay more than the minimum, go for it. It also helps your credit score. If you are to pay every month and you can do it in every two weeks, you should definitely go for two weekly payments. Get it off your shoulders as quickly as possible! If you can’t repay it on time, negotiate and work a solution out.


Keep an Eye on DTI

Debt to Income (DTI) ratio is quite vital. Lenders normally check the DTI when they are asked to extend new credit. According to experts, average DTI ratio is 35%. You should try to keep it within this limit.


Make Collective Efforts

The best way to reduce debts is to not borrow too much. It will happen only when you limit your expenses. It has to be a collective effort especially if you are the sole earner for your family. Ask your kids and wife to reduce their expenses. Tell your kids about the negative effects of needless spending.


Make Timely Payments

This is probably the most important aspect of debt management. If you keep up with time, there are lesser chances of you lagging behind. Make sure that your payments are regular and on time. Once you are left behind in this race, it is always going to be an uphill task for you from there on.



So now you know some of the basic aspects of managing your debts. It is no rocket science. All you have to do is use some common sense. It can save you from many troubles.