2. If you find it extremely difficult to manage your money, then
you are not alone. Managing money is something that is
not really that easy at times, for so many people. You do
not need to feel ashamed if this sounds familiar to you.
More people than not, have an extremely difficult time
learning how to manage their money, which is why so
many families are struggling each month trying to figure
out how in the world they will ever pay their monthly
mortgages, credit card payments, loans, etc. Here's
some helpful information regarding debt, so that you can
start making some changes around your home.
3.
Learning about Debt And Seeking Credit Advice
Debt should not be so scary if you know more about money and debt,
you would know that some debt is OK but you will also know which
kind of debt you should always stay away from, throughout your
entire life. Talk with some of your closest friends about your concerns
regarding your debt, perhaps they too have had experience with
something just the same, they might have very helpful advice for you,
which would be fantastic.
4.
Develop a Budget.
This is the first step that you need to take to control your poor financial
situation. Make a realistic assessment of how much money you
earn and how much money you spend. Make an exhaustive list of
your fixed expenses that you spend - like your rent, mortgage
payments, insurance, car payments. Next write down your
expenses that vary like your cloths, entertainment, your impulse
buys. Write down every expense that you may make or had made
in the past however insignificant. Once the fix the debt and
'variable' expense list is ready you can analyze your spending
habits and patterns. Do you see how many of those expenses could
have been avoided or your purchases that you can do without.
5.
Negotiating with your creditors
If you are unable to meet your credit commitments, meet up with the
creditors. Explain to them why you are unable to meet the
commitments and try to negotiate easier terms. Have your
payment plans modified to more manageable levels. Do not wait
till situation goes out of control.
Dealing with Debt Collectors. Every country has Fair Debt Collection
Practices. Do not try to avoid the representative of the debt
collection agency. Meet up and fix the time, place and frequency
of their visits. Learn about your legal rights.
6.
Get Credit Counseling
If you are unable to meet up with your payment schedules and create
a manageable budget, seek credit counseling. There are many
non profit credit counseling programs. They can advice you on
managing your money and debts, help develop a budget and
provide free education and workshops. They are staffed by
certified and trained credit counselors who can help you develop a
personalized plan to solve your money problems. Before seeking
assistance from credit counseling agencies check their credentials
as you need to share all your financial details with them.
7.
Debt Consolidation
Debt consolidation can help you in consolidating all your debts to a
single manageable payment plan. This may require a second
mortgage on your assets as collateral. The debt consolidation
agency may negotiate to lower your interest costs take away the
hassles of budgeting and making too many payments to different
creditors. However they will charge a fee as a percentage of
your debt.
