It is always better and suggestible to have an individual debt management plan devised and kept in place before you are out to borrow money for fulfilling your luxurious needs.

There are many people who commit this common mistake of losing their control over their own money. They do this by leaving their accounts to the wish of their lenders. The lenders of money decide the monthly installments for the repayments of borrowed debts. This is particularly true for debts related to credit cards where the customers are so busy with their daily tasks of job and household that they seldom take out some time to trace their credit card expenses and the amounts that should be repaid so that they keep away from the burden of debts.

Importance of records

It is important to keep records of all purchases made through credit cards. This is very much essential, if you fail to keep track of your records, you will not be able to check whether your credit card bill contains only the records of purchases made by you. These records should contain the necessary data regarding:

1.    The name of product that was purchased.

2.    The name of credit card by which you made the payment.

3.    The date of purchase.

Side by side also prepare a plan for repayment of debts related to particular items.

1.  
   1. Although the credit card companies ask you for a monthly installment for the repayment of loans against credit card. But it is important atht you realize that they are in the market to do business and earn huge profits. The installment they ask for has two components; a principle component and the interest component for the loan amount. The interest part is huge and is the profit part for the credit card company. So set a target for repaying your main credit card debts like expensive appliances within a definite time frame of three to six months. This will reduce your interest component and increase the payment of principle so that you get away from the burden of stress soon.
   2. Experts are of the opinion that it is better to pay huge credit card debts in small time frame like six months and small credit card debts should be paid through small monthly installments. This will reduce the burden on the debtor.
   3. It is better not to purchase sale items on loans with high interest rates.  They no longer remain good sale bargains when the interest component exceeds the availed discounts.
   4. Keep a track of interest charged on the principle amount you had borrowed. Also, take note of the different credit card fees along with principal payment.

Before you begin the repayment of your debts, it is important to prioritize them. Also, know the various rights that you possess as a debtor. In case you are a US resident, the Federal Trade Commission can help you ion management of your debts.