In our daily life we will definitely not escape from facing various problems that come and go. This is a natural thing that everyone has to face and financial problem that is debt certainly continues to plague those who are in debt and think day and night how to pay off debt easily.

Debt can be managed more effectively so you have better control over your financial situation. If your debt is managed well, it will have a positive effect on your credit health in the long run. The financial problems faced by Malaysians during the MCO period show that financial literacy among them needs to be improved.

Since debt has become a habit in our daily lives, steps need to be taken to learn to manage money and directly, prevent the debt from continuing to increase. Whether you have a mountain of high debt or even a small debt, good and consistent management can bring changes to your financial journey and can help you sleep better at night.

Debt can be overwhelming, but it doesn’t have to take over your life. The best thing you can do to get out of debt quickly is to find out what you owe to whom and know how to divert the money you make to pay those accounts.

Here’s how to help manage your debt better:

1. List And Record Of Expenses
To control debt is to analyze your spending habits and identify all unnecessary expenses. Discipline is key. If you find that you often can’t resist the temptation to spend, set up an automatic transfer on the day you get your paycheck to pay off some of your debt.

2. Pay Off the Debt with the Highest Interest Rate First
Once you know the maximum amount you can afford to pay each month, settle the debt with the highest interest rate first. By doing so, you will save in the long run.

3. Borrow according to your ability
Do not borrow based on expected future income because things may not turn out as expected.

4. Build Your Savings
Increase your savings by creating a savings plan as this will reduce the need to borrow for small purchases. You may also want to set up an emergency fund to pay for living expenses if you are temporarily out of a job.

5. Don’t Go Into Debt For Investments
It is very risky and returns are not guaranteed. You may experience losses rather than gains.

6. Control Your Emotions
To control your spending, you may need to control your emotions. This is because usually our expenses are controlled by emotions, especially expenses that symbolize our status, such as changing new and beautiful or stylish clothes every week or having the latest gadgets.

It is not easy to get out of debt especially when you have limited financial knowledge. Furthermore when if you do not have a clear credit and financial status. Don’t be ashamed to admit that you need help from either a credit counseling agency or a financial advisor. Get help so that you can pay off debt more effectively and secure your future and your financial status in the future