Debt Management.

[Princess Leah]

Borrowing or taking loans is not bad but being a debtor is where the problem lies. What I'm trying to say is that, it's normal to be in need and borrow when you lack, but owing for too long or not being able to clear your debts at the appropriate time, is the problem and can be very embarrassing. Now that's where Debt management comes in, Debt management to my understanding is a process where by one plans strategic means of attending to their debts thereby avoiding numerous debts and be debt free.

 Dept Management is something every human is supposed to be aware of so as to help tackle the problems of being a debtor. Left for me, one who is in debt is like a slave and is bound to face being embarrassed if not they don't apply debt management. That's why before one should take loans, there are many things that's need to be considered. However here are the necessary steps people should take to become debt free;
 Learn to cut cost: one needs to avoid too much spendings, normalize spendings only on necessary things, either for food bills, craving or wants, your expenses should be focused on your needs and not wants.

 Make Budgets: making a bucket list of budgets would aid you to monitor your income and also help you to make right decisions on important expenses.

Avoid spending beyond your budget: this is also another way of debt management because when you spend only what you can afford, it would help you from being a debtor cause you'll be more focused on things you need.

Do not borrow funds to clear debts: doing that automatically makes you acquire more debts and it keeps accumulating because you won't seize to acquire outstanding debts, it would continue to go in cycles until you work hard to earn and become totally free.

Clear debts on time : no one is above being in debt, however one shouldn't settle with being known for a debtor, it brings embarrassment and could cause emotional trauma, therefore one needs to keep tracks of their dept and work on paying them off, beginning high interest debts down to minor ones, needs to be strategic with clearing their debts.

Right choice of investments: investmenting on the right business is just like saving for the future, cause you'll always have a financial support to fall back to, and also avoid taking loans, therefore the right choice of business would guarantee you have a safe heaven rely on instead of taking loans.

Make wise spendings: Consider your financial strength before purchasing items, purchase only items that are of needs not the ones that don't match your financial strength.

 Another way of debt management I could think of is to learn to make proper financial decisions, one should educate themselves financially about  investments and how to plan financially to be debt free.

 Here are some debt management charts to help you understand further.

https://images.app.goo.gl/SrXEfxH6TghMQ5JN6



https://www.google.com/imgres?imgurl=https%3A%2F%2Ffastercapital.com%2Fi%2FMastering-Debt-Management-Strategies-to-Conquer-Interest-Shortfall--Understanding-the-Importance-of-Debt-Management.webp&tbnid=F0OKGlIo-js0SM&vet=1&imgrefurl=https%3A%2F%2Ffastercapital.com%2Fstartup-topic%2FImportance-of-Debt-Management.html&docid=P-4lD9dQy_YHRM&w=1350&h=759&itg=1&source=sh%2Fx%2Fim%2Fm1%2F2&kgs=29fb4c3855f0be51&shem=abme%2Ctrie

                                    In Conclusion
 The concept of debt management isn’t talked about often, this is why most people dwell so deeply in debt and they can’t afford to pay it off. In worst cases where the debtor can’t pay back, they tend to take their life, giving up so easily just in the name of frustration. Sometimes taking debt can be a way out for one, that's if you have an innovative mind and know how to utilize the resources given to you. Some people just don’t know how to manage funds, borrowing money to clear debt or to fund your lifestyle isn’t just the best idea infact, it’s just the beginning of your borrowing cycle. If you don’t have any reasonable plan then there isn’t any need to go for a loan.

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[kotajikikox]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

[Faizan Zen]

The habit of being in debt will make it like a disease, someone who is used to being in debt will easily ask for a loan even though he/she don't need emergency money. If we can, it's better to avoid debt and start saving. Don't try to borrow money for consumer needs because it is very detrimental, good debt is debt that is used for business development (not starting a business)

Even though debt is not illegal, avoiding debt will make it a good habit for us

[moneystery]

debt management is something that is important for individuals or businesses, because debt management will allow individuals/businesses to be able to buy or achieve something without having to interfere too deeply with their finances. however, sometimes individuals/businesses can experience problems with their debts due to poor management of this, and when this happens it may disrupt their financial condition because they need to resolve the problem immediately.

and because of this, it is important for individuals/businesses to be able to have productive debt, which means the debt is for profitable things, not for consumptive needs which are not really needed.

[Poker Player]

This could all be avoided if we just never had debt in the first place

It couldn't be better summarized. For the average citizen, the best thing to do is not to get into debt, the only exception being to take out a mortgage to buy a house. The rest is best avoided. Consumer loans will only make you poorer and are crazy from a financial point of view. And "good" debt, as advocated by Kiyosaki, most people on the street do not know how to handle it.

[Barikui1]

I am actually not a fan of getting into debt to be frank, because it makes me uncomfortable knowing am owing someone, so to me, it's very necessary to cut my coat according to my side, by reducing my expenses and making sure I don't spend more than what I earn, in that way I will not even go into debt in the first place.

Another thing about bad debt is that, I mean the debt you took to consume, it puts you in a very tight Conner, and any money that gets into your hand will be use to service debt, which makes it likely for you to get into another one again before month ending again.

Lastly, even though it's a good debt, I don't really fancy it, because it puts you in an unnecessary pressure just to deliver, and pay it off on time, and it's very wrong to borrow any money to start off a business, because you are not really sure if the business will succeed or not, so the whole idea of borrowing is actually not my thing.

[Cryptoprincess101]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

You are right about not involving in debt at all but what is there is that we do borrow some times not because we don't have money to sort our bills, but for investment purposes. One can get a contract and the nature of the contract may require you to use your personal funds and execute the project before the company or organization will pay you so in that situation, if you don't have money you can borrow in other to clear the project knowing fully well that after the project your money with be paid immediately.

What makes some people not to pay their debts is always waiting for the due date before they can pay off their debts, imagine if you borrow money for an interval of a month hoping that within this one month that you will sort out the money to repay and luckily for you just within some few days after taking the loan you were able to make some money and instead of repaying your debt immediately, you begin to reason that the debt will be due in a month time and of which you are hoping that before then you will make another money to settle the debt, peradventure, you may not be able to have a source to pay back your loan again.  Another thing is not making part payments of your loan at different intervals before the expiry of the loan, making part payments of your loan also gives you the ease to pay off your loan without too much pressure especially when it involves a huge amount

[Bananington]

If debts can be avoided it would be very a wise move because it would be a sorry tale for one to be in poverty or be limited in funds or income, and then they borrow funds just to either sort their problems or gamble away with it.

The best ways to pay back a debt has always been to start from the smaller ones to the biggest which would later be divided into bits and paid off. Avoid bad debts, but good debts help an investment plan to go smoothly.

[Princess Leah]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

In life, mistakes are bound to happen for corrections to be taken, avoiding mistakes totally is not guaranteed in life,  being in serious debt is part of the mistakes people make in life therefore Debt Management is a procedure used in tackling such challenges. Debt is a challenge among countries, business individuals and normal people, that's why there's a term called Debt management to help tackel such challenges.

 You're right when you said many people get debts for things they don't need, it happens mostly among addicted gamblers and people who live beyond there income, so there's no doubt about that, but there's some debt that's inevitable like credit card debts, debts in tuitions and businesses, however it's important to learn how it strategize balance them, failure is inevitable but taking correction is most important, likewise some debts can be inevitable but applying debt management to help tackle it is very important.

 All those things you've mentioned ie makijg budgets,  cutting expenses, saving for future purposes are methods of Debt management, but there are some debts that occurs due to emergency expenses and if your savings is not enough one could be forced to take loans and go into debt however seeking means to pay off and be debt free is most important  that's where debt management comes in.

[Mame89]

The habit of being in debt will make it like a disease, someone who is used to being in debt will easily ask for a loan even though he/she don't need emergency money. If we can, it's better to avoid debt and start saving. Don't try to borrow money for consumer needs because it is very detrimental, good debt is debt that is used for business development (not starting a business)

Even though debt is not illegal, avoiding debt will make it a good habit for us

Basically, getting rid of debt is not something we should avoid, as long as we are willing to learn and are smart about managing finances, then debt can be a lever for us to be smarter in terms of financing. Debt is not always a disease, but you have to be wise about debt. The point is that debt should not be used for consumer purposes, but debt for business is never wrong but of course there are many considerations. Many successful entrepreneurs use debt to do business, and even countries use debt to build infrastructure, development so that society is prosperous.

[pooya87]

Borrowing or taking loans is not bad but being a debtor is where the problem lies.

The only time I would consider "borrowing" money as an option is if there is no interest. Otherwise taking a loan (borrowed money that has interest) is a terrible idea. It is even a worse idea in countries with low inflation rate and a variable interest rates. Because that is the recipe for disaster.

You first need money so you take a loan from a bank. Then you have to pay back a bigger sum because of the interest you have to pay back the banksters. But all of a sudden they decide to increase the interest rates and you would be forced to pay back even more.
That means all your plannings and the techniques you talked about becomes meaningless because there is no way to catch up with the increasing amount of each payment.

In fact this is one of the main reasons why the number of homeless families are increasing in the West. They take loans, mortgage, and live hand to mouth to pay it back. All of a sudden the interest rates go up and they'll have to pay back even more. And when they can't afford to pay it, the bank takes their home and they'd have to live on the street!

[jrrsparkles]

Everyone who take loans have the mindset of managing the debts well and not using the loan money on something else but once we took the loan we forget what we promised and change the lane to somewhere else. So better not to take loans at all if you want to avoid all these confusions and if not then you need to dedicate yourself to pay the debt on time no matter what.

[Dewi Aries]

Everyone who take loans have the mindset of managing the debts well and not using the loan money on something else but once we took the loan we forget what we promised and change the lane to somewhere else. So better not to take loans at all if you want to avoid all these confusions and if not then you need to dedicate yourself to pay the debt on time no matter what.

not everyone is like that, friend, because there are people who take out loans for things that are not really necessary, such as wanting to fulfill a wish, in my opinion there are people like this, because in my environment there are people like this, they want a different style luxurious to the point that he borrows money to fulfill his style, whereas when he has debt but his desires are not reduced, and when he has money he does not pay it but instead fulfills his desires again. That is a problem of course, therefore if you really want to take out a loan then you have to first see what you are going to do and what the money from the loan is for.

Actually, in my opinion, taking out a loan is not really bad, it's just that many people are in debt because their finances are unstable and because they lose responsibility for the actions they have taken before. It is true that it is better not to take out a loan, but when finances are unstable and we experience a disaster, like it or not, we have to do this with the aim of overcoming the disaster that occurs. This is all about accountability which must be good.

[Wexnident]

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I've got no idea how credit card debts are something inevitable lol. If you're planning to use your credit card in the first place, considering it as a debt is wrong since it's something you should be paying off monthly. A business investment can sure be a worthwhile thing but only when it succeeds and taking loans on the "assumption" that you will is just, well, dumb. Student loans, on the other hand, are something that's not really an assumption since it's a streamlined process that an institution almost guarantees for you to succeed in as long as you don't give up midway, so in a sense, it's something worthwhile. Sadly I don't know how the specifics work since I don't think our country even supports it (they instead use scholarships I think?)

As long as it's a situation where you can't guarantee the process, then it's not something I'd go under debt for, at least for the most part though. Rich people often use debts afaik to avoid taxes or something? Unless you're at that level I don't think you'd ever use an "assumption" to support the growth of money you borrowed. 

[AVE5]

The possibilities of debt management is the rhythmical conciousness that you'd always and keep working and paying back your debts which would either not give you the privilege to save from your incomes until you clear your debts and also the fact that if you don't pay back at when due then your debts would keep accumulating and always be there with a must that YOU MUST PAY BACK YOUR DEBTS.
Frustrations or suicidal commitments wouldn't be the solution to it because there'd always be family on your side you'd bench your debts on to MUST PAY BACK YOUR DEBTS.
In as much debts or loans doesn't bring forth productive outcome or not for an emergency reasons to save life then it's not worth it otherwise you'd keep on loaning and regreting at payback times.
 As much as I know, it's Irresponsible being surrounded with debts with the inabilities to payback.

[bettercrypto]

Being in debt is difficult if you don't know how to properly manage the money you borrow, because in the end, the result will be that you will be buried in debt for sure, and it will only make your head hurt. And don't go into debt if you only use it for the luxuries you want.

But if you take a loan and use it in a business that you know you can manage properly and grow, this plan is even better because you will allocate it to a business that will produce money that you can still use as a source to pay off the loan. I think this is correct.

[Agbamoni]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

I humbly agree with you here. If there is way, we could all avoid debt that would be the best decision we will make this year. Debt is not a friend of anyone. The moment you start incurring debt the more you become addicted to taking loans and borrowing money. I am in that shoes and i know how it feels. It will slow you down from your goals and target because you have to pay interest when you have not completely paid off the loan.

Only few persons get into debt because of things they can't afford but they don't really need it. Many take loans for good reasons. Its either health related issue, insurance or business and so many other. The problem in debt is that it's difficult to maintain consistency in paying off the loans because other life expenses will come along the line which may make you to shift the time you were expected to pay the loan to a longer period.

[kryptqnick]

I come from a culture where taking loans is generally frowned upon and considered unsafe, so it's hard for me to understand how people in some other countries often live with a lot of debt and that's just a normal part of life for them.
The problem isn't just with owing for too long. There are also very unfair loaning practices where you can take a small loan without reading the fine print, committing yourself to a terrible interest rate that just gets bigger and bigger.
I believe it's best not to borrow money unless it's an emergency with no other options. But maybe the op's advice can be useful for people who take loans and live in a different society where it's the norm.

[Silberman]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

Spot on, I often find myself thinking what could make people to be proud of being given a high credit score by the banks they use? Since this only means they are good at taking and repaying their debt on time, a much better approach would be to avoid debt as much as possible, with the exception of a mortgage as very few people can buy a house with just their savings, save some money, invest it and then buy whatever you want without the need to worry about paying your debts back.

[franky1]

the word debt management and the charts are not about avoiding/clearing debt. its about juggling debt proactively

but being in debt should be thought of as something you should get out of and not have.. not something to juggle and stay in..

the charts in OP say consolidate debt.. this is the same as borrow more to pay off debt. because the consolidation company pays the old debt but then hands you a new total you then owe them, these companies pay off your debt at discount but then charge you for them becoming your new loan company

the charts dont say anything about avoiding debt entirely, they use words like "consolidate" and "monitor credit score"
the only avoidance is when they say avoid excessive debt.. **

if you simply do everything you can to clear debt then you dont need to juggle it ongoing nor have/need a credit score


** the biggest need of credit scores and juggling debt is to get a mortgage.. a mortgage is usually the biggest debt people will ever have. so if they believe people should continue having managed debt to juggle around to get a good credit score to then get a mortgage then its just subliminal messaging about staying in debt to then get a mortgage (get into excessive debt)
thus not a solution to debt