Every person wants to decrease and eliminate the debt, but they do not know the right way. Debt management is basically learning to live on a fixed budget while ignoring the cause of debt. The plan accompanying the debt management works best with the unsecured debt and personal loans. It is necessary if you are overwhelmed by the debt and you cannot meet your monthly payments. With the debt management plans, your interest rate will be increased. You can create your own debt management plans if you prioritize your necessary expenses like food, rent or mortgage and utilities such as gas bills.
You need to understand the debt management thoroughly if you want to decrease the debt. Some scholarly articles can help you with it. This article will highlight the best scholarly articles that can help you understand the debt management.
1. Managing Public Debt and its Financial Stability Implications
The authors of this article ‘Managing Public Debt and its Financial Stability Implications’ are Michael Papaioannou, Udaibir S. Das, Jay Surti, GuilhermePedras, and Faisal Ahmed. It is one of the best scholarly articles that explores the relationship between the management and level of public debt. It highlights the channels through which the two processes are inter-related.
This article suggests that the debt managers and the policy makers should carefully analyze the broader implications of a debt management strategy. It also explains the impact of a debt management strategy on the financial system, macroeconomic developments and the balance sheet of the government. So you can get a broader view of debt management after reading this article.
2. Article on the Psychology of Debt Management
The authors of this article are Moty Amar, ShaharAyal, CE. Cryder, Dan Ariely, and SI.Rick. Lots of complicated aspects come in the way when a person deal with debt. For instance, how do you decide that which debt you are going to repay first when a consumer many debts. This article will tell you the way through which you can pay the debt in the right way. It suggests you pay the debt that comes with highest interest rates instantly.
Since people try to divide a complex task into more simpler and manageable units, so the authors suggest that peopleshould firstpay the smallest loan before the larger loansin order tominimize the burden of the entire loans. It will create a sense of concrete progress of a person towards the debt repayment. This scholarly article experimentally examines the entire process of managing debt.
3. Dealing with Debt
The authors of this article ‘Dealing with Debt’ are Carmen M. Reinhart, Kenneth Rogoff, and Vincent Reinhart. This article enlightens you on the way of dealing and managing debt which is not an easy task. The major contribution of this article is to highlight various options for optimizing the level of public debt to the nominal activity in the long run. It also reviews the debt dynamics in the current financial crisis from the historical perspective.