Note From Kalen: You don’t need fancy debt relief services to get out of debt. There’s nothing they can do that you can’t, and they can be quite expensive. Here’s a guide to DIY debt repair.

People with a do-it-yourself attitude are daring and believe that they can fix everything in their lives including their finances.

If you are this kind of person, developing effective personal finance management strategies is inevitable.

A bad credit score resulting from endless debts can be stressful unless you establish a good debt management plan.

It will both boost your credit score and relieve you from the burden of worrying debts.

It is important to follow these steps when coming up with a debt management plan.

Keep in Touch with Creditors

Contacting your creditors has a number of benefits. First, it shows them that you are interested in clearing the outstanding loans or bills. Therefore, they will be considerate when handling your case. Secondly, it creates awareness for you that you have a debt that needs to be cleared. Thus, you will put more effort into your endeavors to pay the loans. The third benefit, which is most important, is that you stand a higher chance of renegotiating your repayment schedule and interest to favor your current situation. Keep in touch with them and let them hear your request.

Obtain Another Source of Income

If possible, get another part-time job or start a side business. More income will boost the debt repayment process especially if you are already straining financially. Luckily, there are numerous part-time jobs like working in a restaurant in the evening or tutoring students among many other options. Simple business ideas include opening a small food outlet and starting a taxi service with your car.

Do Not Add More Debt

Needs that consume money will always be present in life. However, people can live without many luxuries. Identify the expenses that are not necessary for your life and scrap them. This means that you will not add any other debt until you can clear those that you have. If you are already strained financially, adding more debt will make the situation unbearable. It could lead to stress and depression when the debts are overwhelming. As a DIY debt management strategy, you have to discipline yourself and avoid engaging in any other debt creation.

Automate Debt Repayment

The temptation of not paying or delaying an outstanding debt payment is real. It is crucial to avoid this situation by all means. It can be resolved by automating the debt repayment process through a standing order to your bank. Salary-earning employees will only receive their money after the debt has been deducted while entrepreneurs will have to ensure that their accounts have money. It is a good way to show commitment to debt repayment.

Keep Records

DIY people are good at keeping records, and this should not be a problem for them. Keeping records shows you the current position of your debts while providing a point of reference at the same time. File the records with dates and have a summary that shows all the paid debt and the outstanding balance. Records also act as reminders that you have a loan obligation ahead that must be cleared.