01/06/2023: Top 10 Ways to Manage Debt

Debt can be a very overwhelming thing to manage. It can feel like you are stuck and unable to move forward due to the weight of your financial obligations. But managing debt doesn’t have to be impossible. With the right plan, you can have a clear path to becoming debt free. Here are the top 10 ways to manage debt.

Create a budget

Creating a budget is one of the most effective ways to manage debt. A budget allows you to see where your money is going, identify areas that need to be cut back on, and set a realistic plan for paying off debt.

Pay more than the minimum payment

When you pay only the minimum payment, most of the payment goes towards paying off interest and very little goes towards paying off the principal. This can cause the debt to take a long time to pay off and cost more in the long run. However, when you pay more than the minimum, you can reduce the amount of interest paid and help pay off the debt more quickly.

Track your expenses carefully

Tracking your expenses carefully is an important step in managing debt. It helps you identify where your money is going and allows you to make more informed decisions about how to manage your debt. When you track your expenses, you can see how much you are spending on interest payments, minimum payments, and other related expenses. This will help you decide how much you need to pay each month and how much you can afford to pay.

Check bills carefully

Checking bills ensures that you are only paying for the services you are actually using. If you find any discrepancies in your billing statement, such as charges that you don’t recognize or that you don’t think are accurate, you can contact your creditor to dispute them. This can help reduce your overall debt, as you won’t be paying for services that you’re not actually using.


Also, being vigilant about your bills helps you avoid late fees and other penalties. If you’re not checking your bills regularly and make a mistake, you could be penalized for it. By keeping an eye on your bills and making sure you pay them in a timely manner, you can help keep your debt under control.

Prioritize important debts

Prioritizing important debts can help manage debt by ensuring that the most important debts are paid first. This can be beneficial because it can help prevent serious financial consequences such as damage to one’s credit score or even legal action. It can also help to prevent late fees and other costly penalties. Prioritizing important debts also shows creditors that the individual is taking responsibility for their debt and is making an effort to pay it off.

Stop credit card spending

Stopping credit card spending helps manage debt by preventing you from accruing any more. When you stop using your credit cards, you are no longer taking on more debt and can focus on paying back any existing debt. This reduces your total debt and helps you manage it more effectively.

Consider debt consolidation

Debt consolidation is a great way to help manage debt. It involves consolidating multiple debts into one single loan, which typically has a lower interest rate than the average of all the existing loans. This can help save money on interest and lower the total amount due each month. Additionally, consolidating can help simplify the process of managing debt by requiring only one payment each month.

Use a debt repayment app

A debt repayment app can help manage debt by providing users with features such as tracking spending, creating a budget, setting up payment reminders, and analyzing credit reports. By tracking their spending, users can more easily identify areas in which they can cut back and save.

Negotiate for a lower interest rate

Having a lower interest rate reduces the amount of interest you pay each month, allowing you to put more money toward paying down the principal balance of the loan. Additionally, reducing the interest rate can allow you to reduce your monthly payment, freeing up more money for other expenses.

Consider credit card balance transfer

Credit card balance transfers can help manage debt by allowing a cardholder to move an existing balance from one card to another with a lower interest rate. This can help reduce the amount of interest paid on the debt and make it easier to pay off the balance. Additionally, some cards offer promotional 0% interest rate periods for balance transfers, allowing cardholders to pay down the balance without incurring interest.


If you’re feeling overwhelmed and need help handling your debt, contact Security State Bank. Our experienced team of financial professionals can help you get started on the path to financial freedom. Contact us now!

Wyoming Proud

  • Security State Bank proudly provides banking solutions in our service communities as a premier community bank. Our goal is to create customer loyalty, shareholder value and employee satisfaction. Our bank strives to serve all of the countless financial needs of our communities.
    - Brent Miller, CEO