How To Build Your Money Management Skills

The financial arena is full of places to accrue debts. Some like house loans and car loans are secured by tangible assets; others like credit card bills, small loans, medical expenses, and other miscellaneous debts are not. It is the smaller unsecure loans that are so easily obtained and ultimately that begin to close down upon the unsuspecting borrower and squeeze the air from them. First it’s a feeling of helplessness, then it becomes suffocation, an almost drowning effect that leaves the person feeling there is no other option available but to file bankruptcy.

Filing bankruptcy is never the perfect solution to solving debt management issues. Sure, it relieves the debtor from all the stresses associated with repaying the volumes of debt amassed, but it also leaves a distinct mark on future credit options. Debt management through a consolidation plan may offer a better solution. Debt consolidation when obtained through credit counseling services, can focus energies on creating a result-oriented plan of action for getting out of debt in the shortest amount of time possible. The results are measurable, and the long-term effects of the process are much less drastic on the credit history.

Is Debt Consolidation for you?

There are many debt counseling organizations currently available and working to help individuals recover from the devastating effects of financial mismanagement. These professionals can assist in consolidation and/or negotiation and they can help individuals regain some financial status within a short period of time.

Finding a debt counseling professional to help you has never been easier. There are literally hundreds if not thousands of qualified providers able and willing to assist you. Contact them, and ask what they have to offer. They will ask you to complete some forms identifying your current debts, your income, and other relevant information and then they will look at what particular components of their programs can help you the most. Take time to research the companies that offer the services you are considering. Don’t sign any participation contracts without reading all the paperwork very carefully and do ask around for referrals. This is a business agreement with someone who can realistically make or break your financial future. Take care to make sure you hire the best agent for the job.

After determining whether you are qualified to participate in their various debt management programs, the credit counselor will calculate a feasible budget for you that places monies aside to make your debt settlement payments pursuant to the plan created specifically for your situation. A plan and program like this is nothing short of a life saver if getting out from underneath too much consumer debt is really your goal.

Once you have the current debt problems under control, be sure to enroll in a money management education program to assist you in recognizing the spending habits and issues that led to the debt laden issues in the first place. Debt management is a skill most people are born with, it is a learned behavior. In particular managing credit card debt is an area most individuals are extremely poor at handling. Most debt counseling programs offer programs to help you clear your debts, restore your credit worthiness, and avoid filing bankruptcy. They help you find the light at the end of your short term debt tunnel and they can help create financial goals, budgets and other tools that will keep you debt free for years to come. By identifying behaviors that lead to overspending, they prepare you to deal with future decisions and make sounder choices when it comes to financial planning.

About Jack Blacksmith continually creates newsletters on themes dealing with money management and assets. You can see his publications on managing credit card debt over at .