Debt Management is the practice of using debt wisely and keeping it under control.

To overcome a debt problem, you will need a plan of action, i.e., a financial plan. Here are the basic planning steps:

• Make an honest self-appraisal.
• Decide to make a change.
• Determine your goals.
• Pay yourself first.
• Commit to an organized plan.
• Get started NOW!

First, you must understand that you have a problem handling money. You may reach this conclusion on your own or you may need the help of a financial counselor or mentor. Once you acknowledge that your own actions are the root cause, you are already on your way to a workable solution. As you work through your plan there are two important rules to remember:

• Stick to the plan.
• Do not acquire more debt.

In your planning, there are three main methods for helping you get rid of debt:

• Build and follow a debt reduction schedule.
• Take out a debt consolidation loan reducing your creditors to one or two.
• Sign up with a credit counseling service for closer supervision and professional counseling.