Managing Debt: Strategies for Staying on Top of Your Finances with the Help of a Financial Planner

Written by Lana Berkowitz 
on 24 Apr, 2023

Debt is unfortunate for many individuals, but it does not have to be a burden. With the help of a financial planner, you can develop a debt management plan that works for your unique situation. Here are some strategies for staying on top of your finances and managing debt:

Understand your debt

A budget is essential for managing debt and staying on top of your finances. Determine your monthly income and expenses, and allocate a portion towards debt repayment. This will help you avoid overspending and ensure you have enough money to pay your bills on time

Prioritise high-interest debt:

If you have multiple debts, prioritise those with the highest interest rates. Paying off high-interest debt first can save you money in interest charges.

Consider debt consolidation:

Consolidating multiple high-interest debts into a single loan with a lower interest rate can help you save money and simplify your debt repayment.

Negotiate with creditors:

If you’re struggling to pay your debts, consider negotiating with your creditors. They may be willing to lower your interest rate, reduce your payments, or offer a payment plan that fits your budget.

Build an emergency fund:

An emergency fund can provide a financial safety net in case of unexpected expenses or job loss. Aim to save three to six months’ living expenses in a separate savings account.

Avoid new debt:

While working to pay off your existing debt, avoid taking on new debt. This can include avoiding high-interest credit cards and financing large purchases.
Working with a financial planner can provide additional strategies and support for managing debt. Here are the points on how a financial planner can help:

Develop a personalised debt management plan:

A financial planner can help you develop a personalised debt management plan that considers your unique financial situation, goals, and preferences.

Provide objective advice:

A financial planner can provide an objective perspective on your debt and finances, helping you make informed decisions without being influenced by emotions or biases.

Monitor your progress:

A financial planner can monitor your debt repayment progress and provide feedback and guidance as needed. They can also help you adjust your plan if your financial situation changes.

Provide debt consolidation options:

A financial planner can provide options for debt consolidation, including balance transfer credit cards, personal loans, and home equity loans.

Offer advice on credit repair

If your debt has negatively impacted your credit score, a financial planner can advise how to repair and rebuild your credit.

Managing debt can be challenging and stressful, but getting back on track with the right strategies and support is possible. Working with a financial planner can provide valuable guidance and expertise, helping you develop a personalised debt management plan that works for your unique situation. You can overcome your debt and achieve financial freedom with commitment and discipline.

Lana Berkowitz

Practice Manager I have really enjoyed joining the SFS team and getting to know the key stakeholders and clients. This is an organization that really enjoys the personal touch and fosters a sense of individual accomplishment while still working as a tight-knit team.