Table of ContentsTake Immediate Action5 Ways to Reduce Your Monthly Debt CommitmentBe Your Own Debt ManagerAn essential part of personal finance is avoiding accumulation of debts. The topic of debt management is a growing concern for many people in Malaysia. One of the main reasons why financial liabilities are increasing to alarming proportions is the rampant use of credit cards. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay If you are a responsible borrower, debt repayment is of paramount importance. The matter must be addressed urgently. There must be a conscious effort to reduce your monthly debt until all debts are settled. Take Immediate Action Thinking about reducing your mountain of debt is mentally exhausting. You can't blame anyone except yourself. You could have escaped accumulating debt if only you had the discipline to take control. But that’s in hindsight. However, your debt won't just disappear. Others even seek the services of professional counselors or “debt relief” experts. This could result in additional costs, which you would like to avoid. The best way to contain the situation is to resolve your financial dilemma yourself. With smart planning and a determined approach, your financial burden can be eased and your monthly debt commitment reduced. 5 Ways to Reduce Your Monthly Debt Commitment The hardest part of any debt reduction goal is knowing where to start. Timing is no longer a question as quick attention is required. If you're determined to resolve the problem, follow these methods that can help you bring your outstanding balances down to manageable levels. Assess Your Financial Obligations A good starting point is to “accurately” assess your current debt situation. When you know the exact amount, type of debt and payment schedule, it will help you plan better. What seems insurmountable at first could be achievable if you are organized and systematic in your handling of the situation. You can look for the best alternatives to reduce your monthly debt commitments. Align your budget with your debt commitment. After assessing your financial obligations, review your monthly budget. Do a financial exercise and make a list of “all” your regular and recurring expenses. Don't omit any expenses that could have a significant effect on your monthly budget. Once you deduct all expenses, the remaining money will be the amount you can afford to pay your monthly debts. You can increase your disposable income by revisiting your spending list. Look for non-essential expenses like cable or internet subscriptions and the like. Reduce your monthly spending on these items. This will put you in a better financial position when you begin a crucial activity. Develop a Debt Reduction Plan When everything is organized, you can develop a workable debt reduction plan. Allocate your monthly available cash flow to the debts that hurt the most. This means you prioritize paying off the loan with the highest interest rate and the largest outstanding balance. The plan will be a continuous cycle each month. Your goal is to significantly reduce the debt balance,.