Tips for properly managing your debt in Connecticut

Keeping your debts in Connecticut under control is much easier when you have a solid strategy and a few good tips.

It seems as though having debt is a part of life for people in Connecticut and everywhere else in the U.S. While that might be true, it does not mean you have to let debt rule your life. No matter how much or how little debt you have, it is vital that you learn how to properly manage it; otherwise, you might find yourself embroiled in a financial fiasco that requires legal intervention.

Keep up with your debt

Even if you only have one credit card bill, keep up with your balance and always know how much you owe as well as how much credit you have available so you do not come close to maxing out your limit. Be sure to look at credit card and bank statements so you know for a fact how well you are doing in regards to how much you have in savings and how well you are doing when it comes to paying off your debt.

Always kick money back into your savings account

You never know when a financial emergency will strike, nor how much that emergency will cost you. Try your best to always put back a specific percentage of your check into a savings account, preferably one that accrues interest. Even if you feel you have enough savings, keep putting money into your account, but maybe consider scaling back on the percentage you devote to the account. It is always good to have quick and easy access to liquid assets.

Keep up with your monthly payments

Make it a top priority to take care of your monthly payments and do so before their due dates. If you opt for automatic payments, be sure you always have the money available; otherwise, you might have to pay a returned payment fee as well as a late fee. Should you ever forget about a payment, make it as soon as possible to keep extra fees and charges low.

Pay attention to interest rates

If any of your debts are attached to variable interest rates, keep an eye on the market to see how much you are paying in interest every month. While it is undoubtedly preferable to have interest rates go down, there will surely be times where they go up. Be sure you and your finances are prepared for unexpected and drastic increases.

Prioritize your debts

If you have multiple debts, decide which of them need to be paid off first. Usually, whatever has the highest interest rate, such as a car loan, should be paid off first. The smallest debts should take second priority.

Do everything you can to keep your debts under control. If you feel you might need to file for bankruptcy, be sure to consult with an attorney.