Three Debt Management Solutions

There are three fundamental approaches to managing personal debt: 1) increase your income, 2) decrease your expenses, and 3) consolidate some of your debts into a single loan with a lower, single monthly payment and use the money freed by the lower payment to accelerate your debt reduction.

Increase Income

While this is the debt management solution most people would choose over the others, it's not usually the one that a person has the most influence over. If your primary source of income is from your employment, most employers will not be sympathetic to a request for more income in the current economy. For most people, increasing one's income requires taking on additional work. Income can be supplemented with a part time job or other endeavor.

Reduce Expenses

While increasing your income strikes most people as the most desirable option, decreasing your expenses is probably the one over which most people have immediately control. Is your cable bill $70 a month? Cancel your cable account. Do you spend too much eating out too often. Stop it. You get the idea.

Consolidate Debts

Finally, one way to gain some financial breathing room may be to consolidate high interest debts into a consolidation loan which results in a smaller monthly payment than the sum of the monthly payments of the consolidated loans. DebtDasher's Consider Consolidation calculator is designed to help you see the potentially beneficial effects of consolidation.

Learn more about Managing Your Debt and how to get all of our Get Out of Debt Calculators on your computer's desktop at DebtDasher.com!