For us, debts seem like a challenging aspect of financial management stated by Bahaa Abdul Hussein. But, did you know that debt management is the key to being financially stable and attaining financial objectives?

Not sure how you can achieve that? Here are some strategies to help you manage your debt effectively:

Create a Budget

Begin by making a budget which will help you in keeping a record of your income and expenses. Thus, you will be able to figure out parts of your life where you can reduce your expenses and thus devote more money towards debt reduction.

Prioritize Your Debts

Go through all your credit cards, savings loans, car loans, student loans, etc. Fill in the amount you owe and the interest rate on each debt. The first thing to do is to pay your debts starting with the high-interest ones, as these are the most expensive ones in the long run.

Pay more than the minimum amount

In case, you can manage to pay more than the minimal payment on your debts, do it. Such techniques may aid you in the quick repayment of your debts and at the same time, you can save money on the interest.

Think about the possible advantages of combining your debts to pay them off faster.

In case of having several debts with a high-interest rate, think about combining them into one loan with a low interest rate. This will turn out to be a handy tool for you in handling your debts and at the end of the day, you will be paying less in your interest.

Discussing with your creditors

If you are having a difficult time paying your debt, call your creditors to find out if they are willing to offer you a lower interest rate or a more convenient repayment plan.

Create an emergency fund

The emergency fund can be your solution to not getting into more debt when you have to pay unexpected expenses. The target is to have at least three to six months’ worth of living costs in your emergency fund.

Take help from a professional.

If you are experiencing a lot of debt and you are finding it hard to make payments, you should go to a credit counseling agency for assistance. They can be a great source for you with their tips and help in handling your debt.


Controlling your debt properly is a matter of planning and utter discipline. Through the process of creating a budget, the realization of the real debt, and the decision to pay more than the minimum payment, you are now free from payday loans.

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