How to Manage Debt for Your Married Couple Friends as a Mentor ...

The following is a guest post.

The concept of being debt-free has gained more popularity since the downturn of the economy. If your married friend finds it difficult to pay his or her bills and is accruing more debt with each passing day, he or she probably needs your help in managing their finances.

There are a number of things that you can do to manage your married couple friends as a mentor including:

1. Making a List of the Total Debt

The first thing of importance in debt management is to know how much you owe. Sit with your friends and help them prepare a complete list of their outstanding debts. You can use their credit reports to confirm that all the debts have been listed correctly.

2. Making Monthly Payments on Time

If your friend is using debt management services, it is of utmost significance to make monthly payments on time. You need to make him realize that late payments make it harder to pay off debt as you have to pay a surcharge on the late payment.? Additionally, make him pay his utility bills on due dates in order to save him from getting into more debt.

3. Decide Which Debts to Pay off First

Another important aspect of debt management is deciding which debt to pay off first. You can use the debt list to prioritize the debts that need to be cleared on an urgent basis. You can advise them to follow a plan to pay off their debts. Additionally, you can choose to pay off the debt with the lowest balance first. Organizing a debt management plan is a great concern for many. At?ConsolidatedCredit.org, there is plenty of information for getting started with a debt management plan.

4. Using Monthly Budget to Plan Their Expenses

If your friend is not in the habit of making a budget, make him realize the significance of budgeting in keeping off debt. A monthly budget ensures that you have adequate money to finance your expenses each month.

When it comes to planning a budget, it is of utmost importance that you make a list of every single debt that you owe including auto loans, educational loans for your kids or any other outstanding debt. This will help you get a better picture of your financial situation. Once you know where your friend stands financially you can help him make a budget.? After making a monthly budget, you need to start tracking his monthly spending. This will help your friend to refine his spending habits.

5. Regularly Checking Their Credit Score

It is of significant importance to check credit report regularly in order to know where you stand financially as a consumer. The credit report is based on your past and present financial position and can be obtained from any of the three top national credit bureaus including Equifax, TransUnion and Experian. After getting your friend?s credit report check it carefully. If there are any discrepancies in the report, get it settled immediately in order to improve his credit rating.

6. Using Debit Cards instead of Credit Cards

Instead of using credit cards for payments, ask your friend to use debit cards. Everywhere a credit card is accepted, a debit card is also accepted. The advantage in paying with your debit card is that, with a debit card the payment is directly and instantly taken from your account whereas with a credit card, the payment is deducted at a later date together with a hefty interest rate.

7. Asking Your Married Couple Friends to Co-ordinate with Each Other

It is wiser to coordinate with your partner when it comes to financial issues. It is advisable to openly discuss all the financial matters such as household expenses, your child?s educational expenses, and other future expenses with your partner. This way you will not only feel relieved but also get some expert advice from your partner.

Conclusion

A friend in need is a friend indeed. Using every possible resource that is available to you will enable you to help your married couple friends in managing their debts. Here the thing that is of prime importance is how to effectively coordinate these resources. Consulting with a financial advisor in order to track down your resources is essential in this regard. Organizing a debt management plan is a great concern for many. At ConsolidatedCredit.org, there is plenty of information for getting started with a debt management plan.

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Image Credit:?http://www.flickr.com/photos/alancleaver/4105722502/

Source: http://www.mastertheartofsaving.com/how-to-manage-debt-for-your-married-couple-friends-as-a-mentor/

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