Not opening your bills, ignoring and pretending your financial problems will magically go away, or hanging onto money instead of paying bills are not the proper way for debt management.  In fact, they are all symptoms of debt denial.

The only way to conquer debt is to take action. You need to deal realistically with your debts for proper debt management.

Follow these hands-on tips from to overcome debt denial:

·         Gather credit card statements, loan papers and any bills in arrears and write down in a notebook what you owe to each creditor.  People usually underestimate what they owe, but once you have it in writing, you can view it more accurately.


·         To prioritize your debt, address your most vital needs first like housing, utilities and groceries. Then list transportation and phone. After that comes IRS debt, medical bills, student loans and credit card debt.  It's important to work with hospitals, clinics or doctors' offices on your medical bills, and they should work with you if you approach them.


·         Writing down where the dollars go for 30 days may help with debt management by helping you find hidden areas where money can be saved.  Most people are spending more than they think they are.  Often, they are using credit cards and that's unseen money spent.


·         Another good way of debt management is to open an additional checking account for discretionary spending on expenses such as gas and dining out, and use the corresponding debit card to keep track of what you spend on wants versus needs. Keep your main checking account for rent or mortgage, utilities, insurance, groceries and transportation.  That not only keeps your spending to a certain limit, but you can also see where the money might be leaking from your budget by looking at your statement.


·         A simple filing system ensures you pay your bills on time.  That system can be a folder placed in a certain place on your desk, a series of folders for each day of the month, a basket on the kitchen counter or an online calendar. Choose what works best for you and then use it religiously.  Open all bills as soon as they arrive and put them into your filing system.  It's necessary to make that process a habit.

Following these tips can help you to avoid debt denial and help you to maintain good debt management practices.