Wise Debt Management Tips To Consolidate Debt Word Count: 525 Summary: Debt relief characterizes those people who systematically take responsibility for their actions to reduce debt. Schooling oneself in the art of bookkeeping is the beginning of managing your debt into more payable repayments leading to debt consolidation. When you systematically take care of your debt you build a steady cash flow, maintain a healthy credit score as well as remaining on top of any future financial commitments when they are due. How do you use effective de... Keywords: debt consolidation.debt management,consolidate debt,debt help Article Body: Debt relief characterizes those people who systematically take responsibility for their actions to reduce debt. Schooling oneself in the art of bookkeeping is the beginning of managing your debt into more payable repayments leading to debt consolidation. When you systematically take care of your debt you build a steady cash flow, maintain a healthy credit score as well as remaining on top of any future financial commitments when they are due. How do you use effective debt management techniques to consolidate debt? By making a checklist and knowing which debt needs servicing first before worrying about the next until every debt has been paid and then you start the process all over again. When looking for an effective debt management plan to consolidate your debt be sure to take tiny steps at first conquering your major battles before moving on to minor scuffles. Formulating a list allows you to visualize the task at hand and gives you a better understanding of where you sit. Follow this process with listing accounts with the highest interest rate variable to the lowest. The higher the interest connected to your debt the quicker they can spiral out of control and consume you. Be sure to explore the many options you have at your disposal when looking to service your debt as there are many ways of tackling your debt such as using the equity in your home, applying for a personal loan or investigate lowering the interest on your credit cards with balance transfers. Be sure to investigate all options available to you as you could be surprised with what is on offer. Another method well worth looking at when formulating a debt management plan is to use what some call the ‘snowball’ method. The snowball technique refers to the doubling of payments towards your lowest balance. Let’s explore this other alternative which goes against the grain! Servicing the lowest balanced accounts releases you cash you otherwise had committed to direct elsewhere. Keeping the momentum going by then doubling or tripling the payments on your 2nd lowest balance and service that debt. This technique has a huge effect psychologically building discipline and energy behind the principle of servicing any outstanding debt no matter what the balance is or the interest rate attached to it and thus releasing capital which can in turn be directed elsewhere. The snowball method has its advantages as it shows your creditors that you are able and willing to service your debts with larger payments and this is the time to contact them and request a meeting in order to negotiate a more favorable repayment structure and interest rate or even a personal loan to consolidate your debt. You have nothing to lose to investigate the possibility of refinancing your present accounts into one low interest loan. Once you pay all your debts off be sure you continue to practice sound debt management strategies and remain on top of things! Keep credit cards at a manageable level always paying the full month’s debt and not the minimum balance as they are the highest form credit available and the easiest to lose control of.