Debt Management Tools

Being mired in debt can be an overwhelming and stressful experience, and some consumers may be unsure about what debt management steps to take. Debt management tools, including self-assessment tests and financial inventories, can help people begin to better manage their debts.

Financial Health Quizzes

Financial health quizzes, such as the online quiz offered by Consumer Credit Counseling Services, can help people determine the state of their finances. The quick multiple-choice assessment asks individuals questions about how they pay bills, whether they make only minimum balance payments, the percentage of income directed toward bills or approaching credit card maximum allowances. After submitting responses, a brief assessment appears with suggestions for better managing debt.

Debt-to-Income Calculator

Consumers can very simply determine whether their debts outweigh their income by using a debt-to-income calculator, such as the online calculator offered by Consumer Credit Counseling Services. Individuals may enter the debt amounts for up to 12 different debtors, and then enter their monthly income. The debt management tool automatically calculates the debt-to-income ratio. Percentages under 15 percent are considered healthy, while percentages between 15 percent and 20 percent may signal pending debt problems, according to the website.

Budget Calculators

Understanding and maintaining a monthly budget is a vital tool for better managing debt, according to Consumer Credit Counseling Services. Their online worksheet for establishing a monthly budget allows consumers to enter their income, and then begin totaling monthly expenses such as rent, taxes, car payments, groceries, clothing and other items. A monthly surplus or deficit is automatically calculated so that consumers can use the information as a tool to tackle debt.

Determining Net Worth

Consumers may determine net worth in order to have a better understanding of their financial health and tackle debt management problems, according to Debt Management Tool, an online information resource for debt management. To do this, Debt Management Tool suggests determining what an individual's total assets and liabilities may be. Once the liabilities are subtracted from total assets, net worth may be determined. Net worth is helpful in managing debt in that some assets may be liquidated to decrease financial liabilities. For example, one person's money market account may earn 5 percent. But if she is paying 12 percent interest rates on outstanding credit card debts, it may make more sense to liquidate the money market account to pay down the high-interest credit card.