Saviour-V teleports into the Sanctuary, after a long period of absence...

It's been a long while since I last came to this Sanctuary of mine. It's been gathering a bit of dust in a few places. Back in the real world, I've been having a few problems of my own.

Saviour-V grins sheepishly...

Like most people, I happen to (or at least, used to) own a credit card. And I have been a bit irresponsible with its use, by overspending on certain necessities and perceived needs, notably on uDemy and other kinds of personal training courses. In addition, I've racked up a number of missed payments on some of my personal loans.

As such, I've ended up in a debt management program, and I'm currently working hard to pay off what I owe. Not an easy thing, really.

There are a few ways that you can use to manage your debts, and one such approach I've recently read about is the ACTNI approach. This 5-step approach consists of the following:

1. Asking your credit card company to lower the fees and interest rates, if you've either made a late payment or missed one. While credit card companies do have the right to raise their rates or charge extra fees, it doesn't hurt to ask for some leeway, especially if your past payments have been on time.

2. Communicating with your credit card company. Fact is, that's something I should've done earlier, instead of foolishly believing that I could somehow squeeze through during very difficult months. If you don't inform your company (or companies) ahead of time when you're about to miss an upcoming payment, not only will it reflect badly on your payment record, but your credit card company can also pursue possible legal action if you haven't been able to keep up with payments. Talking with your company, and doing your best to come up with a possible solution, does help to soften the blow a bit.

3. Tracking your expenses. In my case, I have an Excel spreadsheet and a Gnucash file that I use to track ALL of my purchases, including credit card-related ones. An added bonus is that GnuCash allows you to categorize your spending, which will give you a rough idea about the areas you tend to spend your money on, and aid you in managing your credit more effectively.

Saviour-V touches a finger to his chin, thoughtfully...

In fact, I believe I've got about 10 years of data in my Excel spreadsheet, and about 2 years of it in my GnuCash file. As a result, I could probably tell you about how much I've spent on fuel, or about how much the price of KFC has changed over the years, in my country.

4. Negotiating better interest rates with your company. If you've been with your credit card company for a long time, you could discuss matters with them to get a reduced interest rate on your card. A reduced annual percentage rate (or APR) on your card means that you'd pay a bit less to the bank, than if you had a higher rate. In my case, the good folks at the AKPK (Malaysia's Credit Counselling and Debt Management Agency) helped me to negotiate with the companies I owed, so I now pay much less to them as opposed to the monthly amounts I used to pay in the past.

5. Improving your credit score. It might probably take a while to come back from the ashes, but by working hard to repay your debts, your credit score should eventually improve. And most credit card companies tend to provide lower interest rates to those who have good credit scores.

Aside from the ACTNI approach, which I've just mentioned above, the more important thing, in my humble opinion, is that one should strive to earn more, and retain more, so that one can avoid getting boned when times get immensely tough. The general piece of advice is to retain about 6 months of your salary for emergencies, but some of us usually end up in the pits before then.

So, if you are, don't despair. It is still possible to climb out of the hole, although it will take a LOT of effort to do so. There are many avenues to increase your funds, and some unorthodox ones among them, so keep an eye out for them, and do your own research too, so you can reduce your risks and increase your rewards.

May you all be granted victory in your endeavours, folks!

Saviour-V bows respectfully to his audience, before teleporting out again...