How Am I Going To Pay My Bills?


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When the unexpected strikes such as a job loss or reduced income; many of us are left without an easy solution for our financial situation. Learn how to budget during a financial crisis, communicate with your creditors as well as tips for looking for employment.

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  • How Am I Going To Pay My Bills?

    1. 1. HOW AM I GOING to PAY MY BILLS? Promoting Financial Literacy
    2. 2. About Springboard <ul><li>Springboard is a non-profit organization founded in 1974. </li></ul><ul><li>We offer personal financial education and assistance with money, credit, and debt management through educational programs and confidential counseling. </li></ul>
    3. 3. About Springboard <ul><li>Accredited by the Council on Accreditation (COA) </li></ul><ul><li>Member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA) </li></ul><ul><li>Member of the National Foundation for Credit Counseling (NFCC) </li></ul><ul><li>Certified by the Department of Housing and Urban Development (HUD) </li></ul><ul><li>Member of the Better Business Bureau (BBB) </li></ul>
    4. 4. Our Services Include <ul><ul><li>Credit and Debt Counseling </li></ul></ul><ul><ul><li>Fina-ncial Education Programs – Seminars and Materials </li></ul></ul><ul><ul><li>Debt Management Plans </li></ul></ul><ul><ul><li>Homeowner Assistance (Foreclosure Prevention) </li></ul></ul><ul><ul><ul><li>1-888-995-HOPE </li></ul></ul></ul><ul><ul><li>First Time Home Buyer Education Seminars </li></ul></ul><ul><ul><li>Reverse Mortgage Counseling </li></ul></ul><ul><ul><li>Pre-Bankruptcy Budget and Credit Counseling </li></ul></ul><ul><ul><li>Pre-Discharge Financial Management Instructional Course </li></ul></ul>
    5. 5. <ul><li>People find themselves in financial difficulty for a great many reasons.  Obviously, most people find that they don't have enough money to pay their bills.  </li></ul><ul><li>Some incur too much credit card debt.  Others have problems stemming from loss of employment such as being laid off or fired from a job.  </li></ul><ul><li>Some lose their employment because their </li></ul><ul><li>business has downsized or their own </li></ul><ul><li>business closed.  </li></ul><ul><li>Lets start by figuring where you are now! </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>Introduction
    6. 6. What is a Budget?   <ul><li>Where to begin when creating a budget </li></ul><ul><li>There are two things everyone needs to know before you begin to budget: </li></ul><ul><ul><ul><li>How much you earn </li></ul></ul></ul><ul><ul><ul><li>How much you spend </li></ul></ul></ul>
    7. 7. <ul><li>Use the forms provided in this book or </li></ul><ul><li>Carry a small notebook </li></ul><ul><li>Keep your receipts in a separate envelope for each day </li></ul><ul><li>Use software like Microsoft® Money or Quicken® (chances are you already own one of these applications if you own a personal computer) </li></ul>Daily Tracking Sheets
    8. 8. <ul><li>Job </li></ul><ul><li>Spouse’s job </li></ul><ul><li>Part time job </li></ul><ul><li>Rentals </li></ul><ul><li>Commission/bonuses </li></ul><ul><li>Child support/alimony </li></ul><ul><li>Investments </li></ul>Track All Your Sources of Income
    9. 9. Setting Goals <ul><li>A short–term goal should be accomplished within one year. </li></ul><ul><li>A mid-range goal takes between 2 and 5 years to accomplish. </li></ul><ul><li>Long-term goals take over 5 years to achieve. </li></ul>
    10. 10. <ul><li>Housing </li></ul><ul><li>Food </li></ul><ul><li>Insurance </li></ul><ul><li>Medical </li></ul><ul><li>Auto </li></ul><ul><li>Child Support </li></ul><ul><li>Taxes </li></ul><ul><li>Personal </li></ul><ul><li>Savings </li></ul>Tracking Sheet for Monthly Expenses
    11. 11. <ul><li>Now that you’re more familiar with your income, expenses, and goals , it’s time to propose a monthly budget. </li></ul>Monthly Budget
    12. 12. Adding it all up <ul><li>Now it’s time to put everything together and see whether your budget will work. </li></ul><ul><li>Remember, your short, mid and long term goals should be included with your expenses on your budget. </li></ul><ul><li>Whatever you do, don’t cut into the 10 - 15% you should be saving </li></ul><ul><li>  </li></ul>
    13. 13. What Your Spending Should Look Like <ul><li>Housing 35-45% </li></ul><ul><li>Utilities 8-15% </li></ul><ul><li>Food 10-20% </li></ul><ul><li>Transportation 15-25% </li></ul><ul><li>Medical 8-15% </li></ul><ul><li>Clothing 3-5% </li></ul><ul><li>Personal & Misc. 5-10% </li></ul><ul><li>Savings 5-10% </li></ul><ul><li>Monthly Installments 10-20% </li></ul>
    14. 14. Cost – Cutting Tips <ul><li>Stop carrying your credit cards. Pay in cash. Bring only enough cash for things on your list. </li></ul><ul><li>When buying groceries prepare a list, and STICK TO IT. Avoid impulse buys, even with sale items. </li></ul><ul><li>Clip coupons from the newspapers., or find them online at sites like: </li></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul>
    15. 15. Cost – Cutting Tips cont… <ul><li>Shop once a week. Buy store brands—they are often of comparable quality to national brands, and prices are much lower. </li></ul><ul><li>Make sure your items ring up correctly at the check stand. </li></ul><ul><li>Stay away from restaurants. We spend 16 % of our income on food. More than a third of that amount is spent in restaurants, snack bars, and fast food.  </li></ul>
    16. 16. Cost – Cutting Tips cont… <ul><li>Eat at home or bring a homemade lunch to work or school. </li></ul><ul><li>Stay away from malls. Malls are budget busters. It’s too easy to spend money at on impulse when browsing at the mall. </li></ul><ul><li>Shopping is not entertainment. Shopping is an expensive and serious form of family business. Find a cheaper form of amusement. </li></ul>
    17. 17. Cost – Cutting Tips cont… <ul><li>Turn off the lights and the TV when not in use. Run the dishwasher, clothes washer and dryer with full loads. Set the thermostat to 68 degrees in the winter. </li></ul><ul><li>Buy at discount shopping clubs; buy in bulk and only items that you will use and that will keep. </li></ul><ul><li>  </li></ul>
    18. 18. Setting Priorities <ul><li>Stop Charging </li></ul><ul><ul><li>Curtail all credit usage to avoid overextending yourself. </li></ul></ul><ul><ul><li>If your hardship is temporary, but you’re desperate, there are some things you can do </li></ul></ul><ul><li>Contact Your Creditors </li></ul><ul><ul><li>Your second priority is to contact your creditors right away. Don’t ignore your bills and past due notices. </li></ul></ul><ul><ul><li>If you do not contact your creditors about your financial difficulties and do not make your scheduled payments, several things can happen </li></ul></ul>
    19. 19. <ul><li>Call AND Write to Your Landlord or Lender </li></ul><ul><li>Contact Your Creditors </li></ul><ul><ul><li>Car loan </li></ul></ul><ul><ul><li>Bank loan </li></ul></ul><ul><ul><li>Credit card companies </li></ul></ul><ul><ul><li>Student loans </li></ul></ul><ul><li>Contact Your Insurance companies </li></ul><ul><ul><li>Home/Auto Insurance </li></ul></ul><ul><ul><li>Health Insurance </li></ul></ul><ul><li>Utility companies </li></ul><ul><li>Telephone/cable </li></ul>All Those Bills
    20. 20. A Few More Pointers <ul><li>Increasing Income </li></ul><ul><ul><li>Tax refund </li></ul></ul><ul><ul><li>Family/friends </li></ul></ul><ul><ul><li>Sell assets/property </li></ul></ul><ul><ul><li>Borrow against insurance </li></ul></ul><ul><li>Reducing Expenses </li></ul><ul><ul><li>Less expensive housing </li></ul></ul><ul><ul><li>Reduce food spending </li></ul></ul><ul><ul><li>Reduce telephone costs </li></ul></ul><ul><ul><li>Trade down present car </li></ul></ul><ul><ul><li>Eliminate memberships </li></ul></ul><ul><ul><li>Discuss with family </li></ul></ul>
    21. 21. Your Credit Report <ul><li>The FACT Act of 2003 mandated that the three major national credit-reporting bureaus establish a website, a toll-free number and a mail address for consumers to request their credit report for free every year: </li></ul><ul><li> </li></ul><ul><li>877-322-8228 </li></ul>
    22. 22. Getting Your Credit Report <ul><li>If you’ve been denied credit, a job or insurance because of what your credit report says, you are also entitled to a free copy within 60 days of the denial. Contact the credit bureaus: </li></ul><ul><li>  Equifax – 800-685-1111 </li></ul><ul><li>  Experian – 800-397-3742 </li></ul><ul><li>  TransUnion – 800-888-4213 </li></ul>
    23. 23. Fair Debt Collection Practices Act <ul><li>In 1970 the Fair Debt Collection Practices Act (FDCPA) became law. Its purpose is to prevent, abusive, deceptive and unfair debt collection practices by debt collectors. The FDCPA does not apply to originating creditors who are collecting on their own behalf. </li></ul><ul><ul><li>If violations are flagrant and unending, contact the Federal Trade Commission </li></ul></ul><ul><ul><li> </li></ul></ul>
    24. 24. Handling Unemployment <ul><li>What to do if your out of work? </li></ul><ul><ul><li>Cut Your Expenses </li></ul></ul><ul><ul><li>Consider a new line of work </li></ul></ul><ul><ul><li>Update That Resume </li></ul></ul><ul><ul><li>Handling That Interview </li></ul></ul>
    25. 25. You Might Consider an Entirely New Line of Work <ul><li>Start off with a wish list of jobs that interest you. Think about your hobbies and interests. Could you turn something you enjoy doing into a career? </li></ul><ul><li>Think about people you know; use the contacts you already have to explore a new career path. And of course, there’s always the Sunday help section, and websites like,,, and (to name a few). </li></ul><ul><li>These sites can all help you get a feel for requirements and sometimes pay scales for a particular job or field, and give you job hunting and resume writing tips as well.   </li></ul>
    26. 26. It’s Time to Update That Resume! <ul><li>The best resume is a resume that gets read. Simple, clean resumes that show off your accomplishments are best. </li></ul><ul><li>You don’t have to do anything particularly fancy. Let the content of your resume be the focus, not fancy fonts and graphics. </li></ul><ul><li>One page is preferable as many hiring professionals receive hundreds of resumes, and may not be inclined to read more than a single page. </li></ul>
    27. 27. So, what should be in that resume?   <ul><li>Contact information (Required) </li></ul><ul><li>Objective or Summary Statement (Encouraged) </li></ul><ul><li>Education (Required) </li></ul><ul><li>Experience (Required) </li></ul><ul><li>Activities (Optional) </li></ul><ul><li>Languages (Optional) </li></ul><ul><li>Additional Information (Optional) </li></ul><ul><li>References (Create a separate sheet) </li></ul>
    28. 28. Handling the Interview   <ul><li>Before you call an employer, take some time to prepare what you are going to say. </li></ul><ul><li>Introduce yourself </li></ul><ul><li>Say something friendly </li></ul><ul><li>If you have a contact who knows </li></ul><ul><li> the employer, you want to </li></ul><ul><li>mention it early on. </li></ul><ul><li>Get down to business </li></ul><ul><li>  </li></ul>
    29. 29. Handling the Interview   <ul><li>Tell the employer what you can do, what experience you have, and what you’re looking for in job. </li></ul><ul><li>Ask to schedule an interview. </li></ul><ul><li>Be prepared for rejection. </li></ul><ul><li>Be persistent. </li></ul><ul><li>Wrap it up and confirm. </li></ul><ul><li>Thank the employer for their time and make sure the date and time of the interview is set. </li></ul><ul><li>  </li></ul>
    30. 30. What Managers Are Afraid Of  <ul><li>That you won’t take your work seriously - check your work. </li></ul><ul><li>That you’ll be lazy and have to be told when to do everything. </li></ul><ul><li>That you’ll frequently call in sick, arrive late, refuse overtime. </li></ul><ul><li>That you’re a quitter and you’ll walk out at a time when they really need you. </li></ul><ul><li>That you’re a chronic complainer, a braggart, or someone who blames others for your mistakes, blunders, sloppy work or forgetfulness. </li></ul><ul><li>That you might say or do something to disgrace or embarrass the company, the department, the manager, or your fellow workers. </li></ul><ul><li>That you’d steal, embezzle, lie or cheat. </li></ul><ul><li>That you’d show no pride in your work or your appearance. </li></ul>
    31. 31. Life at New Job <ul><li>Be friendly </li></ul><ul><li>Be flexible </li></ul><ul><li>Show initiative </li></ul><ul><li>Be dependable </li></ul><ul><li>Don’t try to fake things </li></ul><ul><li>Obey the rules </li></ul><ul><li>Admit your mistakes </li></ul><ul><li>Hold your ideas </li></ul><ul><li>Solve your own problems </li></ul><ul><li>Find a role model   </li></ul>
    32. 32. Where to go from here? <ul><li>Attitude is half the battle. If you have a friendly disposition, you’ll find a job faster than someone who doesn’t. More than two thirds of displaced workers find new employment within 90 days. </li></ul><ul><li>What’s the most critical factor in finding a job? Having a job-search strategy - and following it. </li></ul><ul><li>Having the tenacity to stick with it -- and adjust it as necessary -- for as long as it takes. </li></ul><ul><li>Job-hunting is hard work, but the more you plan, and the more committed you are to finding a new job, the better your chances. </li></ul><ul><li>Here are the 10 steps to finding a new job: </li></ul><ul><li>  </li></ul>
    33. 33. Where to go from here? <ul><li>Step 1: Examine your life/career. </li></ul><ul><li>Step 2: Set career/job-search goals. </li></ul><ul><li>Step 3: Reconnect with/expand your network. </li></ul><ul><li>Step 4: Upgrade your knowledge/skills. </li></ul><ul><li>Step 5: Consider additional training/education. </li></ul><ul><li>Step 6: Update/polish your resume. </li></ul><ul><li>Step 7: Learn/refresh job-search techniques. </li></ul><ul><li>Step 8: Practice interviewing. </li></ul><ul><li>Step 9: Test your marketability. </li></ul><ul><li>Step 10: Consider advancing internally. </li></ul><ul><li>  </li></ul>
    34. 34. Job Sites <ul><li>All jobs Search </li></ul><ul><li>Cal Jobs </li></ul><ul><li>Career Builder </li></ul><ul><li>HotJobs </li></ul><ul><li>Monster </li></ul><ul><li>Community Career Center </li></ul>
    35. 35. Springboard Can Help! <ul><li>If you work to balance your budget and still fall short, or if you are paying too </li></ul><ul><li>much (over 20%) of your income towards debt, then you may be in a financial </li></ul><ul><li>difficulty.   </li></ul><ul><li>Consumers who need help can call us at 1-800-WISE-PLAN (1.800.947.3752). </li></ul><ul><li>We offer free individual financial counseling sessions with certified credit counselors, and have a range of services available to help consumers in many situations. </li></ul><ul><li>Find Springboard on the internet at . </li></ul><ul><li>  </li></ul>
    36. 36. Thank You! <ul><li>Springboard Nonprofit Consumer </li></ul><ul><li>Credit Management </li></ul><ul><li>800-WISE PLAN </li></ul><ul><li> </li></ul><ul><li>[email_address] </li></ul>