When trying to grow financially, controlling debt is a necessary factor. Yes, you can make monthly debt payments and continue with your life but these things are not as simple as you think. They require regular attention or else you can get back to square one, right where you started.

In this article today, I am going to help you eliminate all your debt effectively by introducing you to some of the finest debt management strategies. Debt management strategies are like a framework for the management of your debt. If anything, they can make the processing of paying off debt easier for you.

Individual Voluntary Agreement

The first one for today is the individual voluntary agreement, also known as an IVA. It is a legal and formal agreement between you and your credit in which you decide a deadline to pay off your debt. Since it is approved by the courts, your creditor cannot violate its terms and conditions.

An IVA is a tad expensive as it involves hiring an attorney and of course, there are legal proceedings. However, it is the best solution for those who are tired of their creditors’ aggressive debt collections. Nevertheless, an IVA is super flexible, so it can efficiently fulfill all your requirements.

Balance Transfers

One of the most common types of debt these days is credit card debt. It is because people use credit cards now more than ever. They keep on buying things and cry over the pending bills later. The worst part of the story is that credit cards come with a high-interest rate, so credit card debt is the most difficult to pay off.

Balance transfers mean using one credit card to pay off the debt for another. It’s the smartest debt repaying strategy for credit card debts. Although banks won’t recommend you balance transfer, you must not stop looking for a card with a low-interest rate.

The Debt Snowball

If you have multiple debts hanging on your head, you should go for the debt snowball method. It’s another effective debt management strategy and it especially works for multiple debts. In this method, you cater to one debt at a time.

Starting with the smallest debt, you gradually move on to the second smallest as you get done with one, and the process goes on. The only downside of this method is that it ignores the issue of the interest fee. You take on the debt based on its size and neglect the interest rate altogether.

Debt Settlement

Debt settlement is crucial for someone who is burdened because of the interest fee. As you know, a high-interest rate is a big issue. It nearly doubles the amount of debt you owe; therefore, the interest fee is something you must never neglect.

So in case of a high-interest rate, you must look into debt settlement. For this, you can hire an attorney or a financial expert. He or she can negotiate on your behalf and settle the debt. If not, at least they’ll get the interest fee waived off, which will make a huge difference at the end of the day.


Last but not least, if nothing else works, you can move towards bankruptcy. It is a suitable option for someone who is unable to make debt payments and barely makes ends meet. However, it is the last resort for you as bankruptcy is a legal procedure and there’s no turning back once you file for it.

Furthermore, every state has different laws for bankruptcy, so make sure to check with an attorney before you make a decision. When filing for bankruptcy, you may lose some of your prized possessions as well as access to credit cards and lease programs, so think long and hard beforehand.

Managing debt isn’t difficult if you go with a proper framework. Choose one and stick to it!