The first order of the day is establishing what debts are actually due by yourself, and acceptance of those debts. By ignoring the fact that you owe money to your creditors is not going to make the debts go away, but will rather compound the potential problem and make the debt management process that much more difficult. Therefore you should take the time and make the effort to sit down and track exactly how much is due to which creditor and organize all debt related information into a central file. This will enable you to be able to assess, at a glance, what exactly your debt management system will require of you and your resources. By identifying and acknowledging your current debts, as well as how they were incurred will enable you to avoid the pitfalls of having to construct a debt management plan in the future.
The buy now and pay later mindset is an extremely dangerous habit to acquire, if you do not have the necessary discipline to cut yourself off at a responsible level. In our modern society we have all been exposed to the instant gratification that comes along with the latest pace of life. This unfortunately filters through to every aspect of our life and when we want something, we do not spare a thought of what we already owe and what is due on our accounts, instead we rush out and buy the latest toy, gadget or item with little regard for the potential results. Even if these items are small ticket purchases, just think of that money paying off the debt sooner and saving you interest charges in the long run. Therefore before you buy anything, take a minute to think whether you really need that item, and do you need it right away?
If you have already gone passed a reasonable limit and your debts exceed you assets, or your monthly expenses exceed that of your income, then it is time to stand back and really assess your situation. If it has reached this point already, you will have quite a bit of work ahead of you in this debt management process. At this point you will more likely be better off discussing your situation with your creditors before it actually becomes a major problem. Most creditors will understand if you approach them in an honest and sincere manner, and make suitable arrangements to get your debts paid off as soon as possible. The most important issue here is that you stick to your agreements and honor your promises made to the creditors, in order to avoid any potential legal action of bad credit rating.
Debt management is about being realistic and practical, take a minute to think before you act, especially if the action will incur further debt in your name.