Debt has become a major concern for almost every person in today’s society, which has become a culture that depends on credit to survive. There are many businesses and organizations that provide debt management services, charging a fee to clients already in debt.

The key to managing debt is to avoid panic, and to take one step at a time. The first step is to organize all credit data into one document. This will allow you to set goals toward becoming debt free, and assist you in reaching those goals. The document should include the name and contact information of the creditor, the amount of the debt, required monthly payment (if applicable), and the method of payment. Other information can also be included for your convenience.

The second step toward becoming debt-free is to make goals toward your debt management. Examine the information in the document you prepared above, and set goals for completing payments on a certain debt. Remember that you will have other obligations and cannot dedicate your entire income toward debt management. You will need to budget your expected monthly income, and determine the amount that can be dedicated for debt management. This amount can be sent to one creditor, or can be divided and sent to several if necessary. Be sure to make the minimum payment required in order to preserve or repair your credit history.

The third step is to reach the goals that you have set. Although it will be a challenge, remember that you are doing the best that you can, and make that honest effort. It is a good idea to save some money for emergencies to avoid “borrowing” the money committed to debt management.

Debt management is a challenge. If you become frustrated, take some time for another task or for relaxing, and after allowing yourself to calm down, return to your task of debt management.