Basics of Debt Management

This course explains how to reduce debt using financial planning and budgeting. We define basic financial terms like ‘credit’ and ‘debt’ and identify their various types. We lay out the pros and cons of debt management and establish its role in taking control of your personal finances. The course then compares long-term and short-term debt and shows you how to assess your financial situation.

A debt management plan will help you to pay off your debts in a planned and secure way. We explain what a debt management plan is, how it works and how to enrol. We then go through its process step by step. To understand how much debt you are in, you have to learn some terms and calculations to avoid further damage and employ the right methods to reduce your debt. We demonstrate how to assess your debts and provide some strategies to reduce them. The course then moves on to the process of debt financing.

Budgeting is an essential money management tool used to escape debt. We break down the process of creating a monthly budget for your household. We also show you how to differentiate between ‘good’ and ‘bad’ debt before discussing debt collectors, debt counselling and the role of bankruptcy and insolvency. Our final section discusses laws and regulations related to debt. Good financial planning can save you money and stress so sign up for this personal finance course to learn how to manage and get out of debt.