Take Control Of Your Finances
Sometimes, your bills increase when your income doesn't. It's a difficult situation that can quickly lead to big trouble. Read over the following list; if two or more of these statements apply to you, it's time to take a serious look at how you manage finances:
If you need help with your budget, follow the planning and budgeting steps on this site. They can help you manage finances and take control. You may need a few months to adjust your spending categories until you have the plan that works best for you.
Getting Spending Under Control
If your income doesn't cover your expenses, you should either cut your expenses or increase your income. It's usually easier to cut spending. You don't need to make drastic changes; just make effective cuts that will allow you to pay your bills. First, cover the bills you must pay (mortgage/rent, utilities, loan payments) and money for necessities (food, insurance). Then, focus on cutting non-essential expenses such as eating out, shopping and entertainment.
Getting out of debt is not easy. It also takes time. Most people need a year or two to accomplish their goals.. But it's well worth the commitment.. Remember, the discipline and techniques you learn by balancing your budget will benefit you for the rest of your life. Getting out of debt feels great. Staying out feels even better.
Once your monthly spending is under control, you can think about ways to make debt a thing of the past. Here's a list of ideas:
National Foundation for Credit Counseling's DebtAdvice.org helps consumers understand the use of credit and to locate a trained, certified counselor for credit assistance. For a list of U.S. Government-approved credit counseling agencies, visit www.justice.gov.