Start the year right with a debt management plan

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Setting financial goals for the new year is a good move for those who want to become better handlers of their income. According to the experts at Brennan & Clark, while paying debts in full might take some time, this will certainly ease a person's anxiety when it comes to money. Check out this guide for creating a debt management plan.

Assess debts: Before coming up with a plan, it's essential to know one's financial standing. This will dictate other important details of the plan, such as the length of time and which ones to finish first. Making a list of all the debts along with one's income will enable a person to plan accordingly, preventing the feeling of being overwhelmed when it comes to making the payment.

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Create a detailed and time-bound plan: To accomplish a goal, it must be realistic and time-bound. This is especially true when it comes to money matters. When drafting a debt management plan, trying to pay off everything all at once can be counterproductive. Instead, one should do it step by step. Taking note of payment days and the amount to be paid will enable a person to prepare and adjust, if necessary.

Choose which debts to focus on: The team at Brennan & Clark suggests listing debts and prioritizing which ones to finish first. One can choose to pay the account with the lowest interest or the one with the highest rates. Starting from the lowest allows a person to pay other debts faster. On the other hand, paying the highest one first will allow a person to finish a debt that might incur more costs in the future. To choose which debt to focus on, it might help to consider a person's current budget and expenditures while planning.

Brennan & Clark is a business collections firm that has been operating for over 30 years. The combined experience and expertise of its staff enables the company to guarantee higher recovery rates than the industry average. For similar reads, visit this blog.