Consumer debt is at an all-time high and continues to rise as people use credit cards, payment plans and payday loans to make ends meet. Debt management is essential for maintaining financial health, but too many people don’t know where to start to achieve that goal. Good debt management increases your credit score and can open new avenues of opportunity. It also nets lower interest rates.

Pay Bills Promptly

Pay them as soon as they arrive. You won’t accidently forget a payment or incur late fees.

Prioritize Debt

Make paying high interest debt a priority. You’ll avoid exorbitant late fees. You can put that money on the next highest card when it’s paid off or into an emergency fund.

Always Pay at Least the Minimum Amount

You’ll avoid late fees that adds more to your debt. It pays the interest, but nothing on the principal, while demonstrating you’re trying to meet financial obligations.

Create An Overview

List all your debts and the monthly amount. Include credit cards, loans, car payment, mortgage or rent, and utilities. This tells you how much money you have going out each month. Compare it to your take-home pay.

Emergency Fund

An emergency fund is essential for eliminating unnecessary spending, debt, and to handle unexpected expenses such as medical bills, job loss, or home or car repairs Experts recommend saving 3 to 6 mos. worth of living expenses.

Pay What You Can Afford

If you can afford to pay more on credit cards or loans, do so.

Track Spending

Monitoring expenses tells you where money is being spent. unnecessarily.

Set Up Alerts

Sign up for low account alerts if your bank offers the service to avoid overdraft fees.


This is an option of last resort. It stays on your credit report for 10 years and will affect your ability to buy a car, rent or buy a home, and even obtain employment

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!