Most common consumers do not have any professional financial management training. This is the reason that they often land in a situation of huge debts. In such situations they become stressed and confused and in desperation file for bankruptcy. But following some basic debt management tips can save them from bankruptcy and get rid of the debts at the same time. The first step is managing debt is to stop the usage of credit cards. The next step is to make a list of all the loans and pay off the high interest ones on priority. It is best to clear off the unsecured loans first because they are usually the ones with maximum rates of interest. Along with this the debtors can negotiate settlements with the creditors.
Nowadays there are many debt settlement programs being offered by various debt settlement companies. In order to find an affordable debt management program, a debtor can search on the internet. Once a debtor has hired a debt settlement company, he or she does not need to deal with the creditors at all. They not only negotiate and settle the debt with the creditors; they also provide guidance on budget management. They educate the debtor on how to avoid debts in the future and how to increase income and savings. This counseling and guidance are given free of cost as part of the debt settlement program. They usually charge 10% of the total settlement amount as fees which is reasonable.
If a debtor cannot afford the fees charged by these companies, he or she can approach a non profit debt relief networks. These networks provide free debt management guidance. But in this case the debtor has to deal with the creditors himself or herself. Hence a debtor can find many affordable debt management programs on the internet.