IndexTake Action Immediately5 Ways to Reduce Your Monthly Debt ObligationBe Your Own Debt ManagerA key component of personal finance is avoiding debt accumulation. The topic of debt management is a growing concern for many in Malaysia. One of the main reasons why financial liabilities are growing at alarming proportions is the rampant use of credit cards. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay If you are a responsible borrower, debt repayment is of paramount importance. The matter should be treated urgently. It takes a conscious effort to reduce your monthly debt obligation until all your debt is paid off. Act immediately. Thinking about reducing your mountain of debt is mentally taxing. You can't blame anyone but yourself. You could have escaped accumulating debt if only you had the discipline to take control. But this is in hindsight. However, your debt won't simply disappear. Others even engage the services of professional counselors or so-called “debt relief” experts. This may result in additional charges which is something you will want to avoid. The best way to contain the situation is to solve your financial dilemma on your own. With smart planning and a determined approach, your financial burden can be reduced and your monthly debt obligation reduced. 5 Ways to Reduce Your Monthly Debt Obligation The hardest part of any debt reduction goal is knowing where to start. Timing is no longer an issue as prompt attention is needed. If you are determined to resolve the issue, follow these methods that can help you reduce your outstanding balances to manageable levels. Assess Your Financial Obligations A good place to start is to “thoroughly” assess your current debt situation. Knowing the exact amount, type of debt, and payment schedule will help you plan better. What at first seems insurmountable could be doable if you handle your situation in an organized and systematic way. You can look for the best alternatives to reduce your monthly debt obligations. Align your budget with your debt commitment After evaluating your financial obligations, review your monthly budget. Do some financial exercises and list “all” your regular and recurring expenses. Don't leave out any expenses that could have a material effect on your monthly budget. Once all expenses are deducted, the remaining money will be the amount you can afford to pay off your monthly debt obligations. You can increase your disposable income by reviewing your expense list. Look for non-essentials like cable or internet subscriptions and other things. Reduce your monthly spending on these items. It will put you in a better financial position when starting a crucial task. Come up with a debt relief plan When everything is organized, you can come up with a workable debt relief plan. Allocate your available monthly liquidity to those debts that hurt you the most. It means you prioritize paying off the loan with the highest interest rate and highest remaining balance. The plan will be a continuous cycle every month. Your goal is to significantly reduce your debt balance, if not completely liquidate it. Repeat the process of categorizing your debts by highest rate and balance owed. As you implement your debt relief plan, you are also moderating your expenses. In particular, you need to stop using your credit card. Racking up more charges won't do.