You should be proud of yourself: You have finally gotten into a debt management plan and are learning how to manage your debts.
While this is a step in the right direction, you probably are already realizing that it is going to take some time to pay off all you owe. While your debt management plan lays out what you will pay each month towards your debts, it often doesn’t give you any direction on how to handle the everyday expenses of life.
The experts at can help you find a way to manage your debts. Once you set up the debt management plan and make your monthly payment towards your debt, what is left over is what you have for all the essentials of life, from the rent or mortgage, to food, clothing, and electricity.


  • If possible, move into a cheaper place while you are in your debt management plan. This will free up some additional cash each month as you pay off your debt.
  • Some people are able to move in with relatives, which allow them to pay extremely low and sometimes no rent. This is ideal for your budget, but may put a strain on your family life, so think carefully about this.
  • If you own your home, it pays to talk to the lender to inform them of your debt management plan. They often have programs for borrowers who are struggling, which could result in a lower interest rate, the forgiveness of late fees, or even a month or two grace period. You won’t know what’s available until you ask.


  • Contact your electric company to see if it offers a budget plan. This makes your bill the same each month, which makes budgeting a lot easier.
  • How many phone bills are you paying? Many households have given up their land lines as each member of the family has their own cell phone.
  • Can you live without cable? It’s often a big expense, but it’s also often the only entertainment available to people who are on a debt management plan. Maybe you can cut any premium services to save on that bill.


  • Eat at home whenever possible. Pack lunches, even for the grown ups. This will help you manage your budget, which will help you manage your debt.
  • Shop at wholesale clubs, the large box stores, and even discount and dollar stores for food, especially snacks.
  • Make a weekly menu before you make your shopping list. Incorporate items that are on sale. Stick to your list when shopping.


  • While you are on a debt management plan, shopping at the mall may be out of the question. While your kids may resent this, help them discover the fun of hunting through consignment stores, thrift stores, and stores run by the Goodwill or Salvation Army. You can often find clothes that are like new — some still have their tags on them!
  • Save up for those times when you know your clothing expenses will be higher, such as right before school starts.
  • Shop with cash. It will help you stick to your debt management plan.

Being in a debt management plan is a great time to learn how to budget your money and live within your means. Let the help you get on the road to financial recovery.