The main reason and perhaps even the most important one for managing loans will is to ensure further penalties are not incurred due to negligence in payment requirements. This can and usually does happen when there are too many smaller debts that require the attention of the individual managing the debt collection exercise.

Important Points

In trying to minimize the possible occurrences of defaulting on payments, or not being able to make payments at the stipulated times and therefore incurring further interest on already outstanding amount one should consider consolidation the loans altogether.

Over time and statistically this has proven to be a better option to choose from as it not only facilitates lower interest rates by comparison it also is easier to manage when all loan payments are now less thus effectively converting it into one single payment.

Taking a serious view on managing debt is an important part of building a storm fiscal planning exercise. In keeping the debt manageable to the income ration the individual will be able to successfully work towards ideally eventually paying off the debt amount and plan towards saving for the future.

Not allowing the debt to spiral out of control should be the priority as it will eventually contribute to the individual being able to successfully pay down the accumulated debt without having to resort to more drastic measures.

Budgeting is important and getting a proper handle on one‟s personal monthly commitments and budgeting is an important first step in the right direction. Understanding and documenting what comes in and what goes out will help to get a clearer overview of the financial situation. It can also help to make adjustments where possible to being about better debt management. Establishing a strong and good credit platform is also important.