Debt Coaching

Debt coaching -- also referred to as money coaching -- teaches you how to budget and manage household finances. Along with improving your money management skills, debt coaching can help you reach your financial goals, whether they be accumulating savings, paying off debts or learning how to invest. A money coach offers advice and can help guide you in making the right financial choices for your personal situation so you can get your finances in order.

Creating a Budget

Budgeting is about knowing where your money goes and not spending more than you earn. Begin by comparing how much you make each month with how much you spend. The first step in creating a budget is determining which of your monthly expenses are genuine needs. Sticking to a budget means living only on what money you actually have coming in. From there you can prioritize and make choices on how to spend any remaining income. If there are times when you spend more money on certain expenses than you have, then you have to cut spending somewhere else to compensate. Examine your spending habits carefully because they are key to reducing debt and successfully saving more money for both your short-term and future long-term financial goals.

Tracking Your Spending

Tracking your spending can help you keep to your budget. Each time you pay a bill or spend money, write it down in a notebook. Another approach is to ask for a receipt every time you spend money. Either method of record-keeping works, but if you do both you can check one against the other for more accurate tracking. Spending includes fixed monthly expenses and necessities as well as the other things you might want. Make it a habit to buy only what you need and avoid the temptation to spend money on things you want but don't really need. If you don't have enough money coming in each month to cover the basics, you may have to find ways to add to your income.

Self-Managing Your Debts

According to Bankrate.com, it can be to your advantage to try to manage your debts yourself. One benefit is that you save money you can put somewhere else. Instead of paying a debt management company a fee, use that money to pay down one of your debts. If you are in serious financial trouble, prioritize which bills you should pay first. Start by paying basic expenses. These include household utilities, health insurance premiums and mortgage or rent. Next, move on to pay other secured debts like your car payment before paying unsecured debts such as credit cards. Contact the creditors for any unsecured debts and ask if they are willing to accept a smaller monthly payment. Negotiating a lower payment plan can keep a creditor from taking legal action against you and give you more time to repay what you owe.

Paying Down On Credit Card Debt

Personal finance expert Lynette Khalfani-Cox recommends paying more than the minimum payments on credit card balances. Khalfani-Cox points outs that by paying the minimum, you are only paying 2 to 4 percent on the principal balance each month. Depending on how much you owe, this could keep you in debt for many years to come. Another strategy while you are paying off credit card debt is to delay making any new purchases until you can pay in cash.