Debt Management Skills

Debt management skills are not that difficult to acquire, but they require constant practice until they become second nature. To manage debt, you need to learn to think about earning and spending as percentages, tracking every dollar that comes and goes; you must discipline yourself to spend only what you actually can afford. The longer you practice your skills, the easier they will get.

Budgeting

The ability to make and stick to a budget is listed as top priority on many money management websites. A 2007 Bankrate article suggests beginning by writing down every expense for a month. Then create your own budget or download budgeting software. Enter your income, and allot 10 percent toward general savings, 10 percent toward a specific savings goal, 35 percent for housing and utilities and the remaining 45 percent toward discretionary spending. When spending the 45 percent, use cash or a debit card.

Paying Down Debt Strategically

A logical approach to paying down debt is to pay the most toward the highest-interest debt and make at least the minimum payments toward smaller interest debts. Some consumers feel better watching the smaller debts disappear. The important thing is to have a financial plan for how much you need to -- and can afford to -- pay every month and then to pay that consistently.

Talking to Creditors

It may sound simple to talk to creditors, but it's much easier to avoid them and simply let payments slide by, especially when you've dealt with hostile collectors. Such actions can trigger lawsuits, however. Start by learning your rights under the the Fair Debt Collection Practices Act, enforced by the Federal Trade Commission. Not all creditors will accept payment arrangements or reduce your interest, but some will. It's best to ask to speak to a supervisor and remain calm and friendly.

Changing Your Thinking

Changing your thinking takes time. If you think you need a new wardrobe every season change, a new car every year or a $5 coffee every day, your thinking may be creating debt. Examine expensive thinking patterns and change them. An espresso maker could cost a lot less than buying coffees daily at your favorite shop. Read about people who escaped debt and their freedom and peace of mind, and avoid the temptation of ads that provoke you to buy things you can't afford.