Be smart: Manage debt in a strategic way

12/06/2014

Financial Strategy isn't just about following investment advice and increasing your cash flow, it also concerns handling your economic obligations in a smart, measured manner.

For instance, debt is an issue plenty of people have to deal with on a daily basis, from paying off a mortgage to keeping up with credit card payments.

Fortunately, there are ways to strategically manage your debt and keep yourself on top of whatever financial responsibilities you have.

Playing it smart

If you've racked up a considerable amount of debt, it can be difficult figuring out where to start chipping away at it.

One strategy some people use is to begin with the largest debt and work their way down. However, others have found a more strategic option is beginning with whatever debt has the highest interest rate attached to it.

Levelling the playing field

While not right for everyone, plenty of people have found consolidation to be a smart strategy for debt management.

In short, debt consolidation allows you to roll all your outstanding debts into one payment. This can help you keep track of your financial obligations better since you won't have to worry about various outstanding debts.

At the same time, this option comes with its own costs, and it might not be the most strategic choice if it ends up costing you more in the long run.

Creating a team

There's no rule that says you have to manage your debt on your own.

Working with professional financial advisers who can help you explore your debt management options can be a great way to strategically plan your financial future and get on the right track regarding outstanding economic obligations.

Debt affects every aspect of your financial health, so it only makes sense to work with someone who can better help you see the big picture.