Debt Management Plan

Objective:

To help individuals eliminate debt systematically while maintaining financial stability.

Key Components:

1. 
   

   Assess the Debt:

   • Create a detailed list of all debts, including credit cards, personal loans, and mortgages.
   
   
   • Identify interest rates and repayment terms for each debt.
   
   


2. 
   

   Prioritize Repayments:

   • Use the snowball method (smallest to largest debts) to gain momentum.
   
   
   • Alternatively, use the avalanche method (highest to lowest interest rate) for cost efficiency.
   
   


3. 
   

   Negotiate Terms:

   • Reach out to creditors to lower interest rates or extend repayment periods.
   
   
   • Explore debt consolidation to combine multiple debts into one with lower interest.
   
   


4. 
   

   Control Spending:

   • Create a realistic budget to cut unnecessary expenses.
   
   
   • Redirect saved money toward paying off debt.
   
   


5. 
   

   Monitor Progress:

   • Regularly review your repayment plan and make adjustments as needed.
   
   

Ideal For:

Individuals overwhelmed by multiple loans or struggling with high-interest debt.