Chapter 11. Putting Your Debt Management Plan into Action

Now that you know more about debts and how they can be managed intelligently, you can put together a plan to deal with your finances in the smartest way. You can get rid of your most troublesome loans while increasing your financial flexibility and building your long-term net worth.

We'll assume at this point that you can pay more than the minimum on your bills (or you suspect you can do so once you've trimmed a few expenses). If you're still struggling with your debts or being hounded by creditors, you need to go back a chapter and read about managing a debt crisis.

Once your crisis is resolved and you're back on your feet, you can get started with your long-term plan.

This program has six steps:

• Lower your interest rates to make your debt more affordable.
  
  
• Track your spending so that you know where your money goes.
  
  
• Trim your expenses so that you're spending on the important stuff.
  
  
• Look for cash to speed you toward your goals.
  
  
• Review your priorities so that you know what's important and what's not.
  
  
• Create a debt management plan that works for you.