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Debt Advice |
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Debt Advice You Can Use
In order to be successful in your goal of becoming debt free you should create a budget for yourself. A personal budget is a financial plan that sets limits on the amount of money
spent on each category of expenses in a given month. Most budgets include the amount of income being received, outstanding debt to be paid, retirement savings and emergency funds.
Below are a few debt advice tips to help you achieve your goals.
Debt Advice Tips
Debt Advice #1 - Save and Monitor Your Money
Depending on your personal budget, you may want to save more than has been established in your plan in order to finish the program sooner. Remember that these funds are in
your control and should not be sent to Credit Answers - we do not make payments to your creditors. Saving more provides greater benefit to you and helps you become debt free in
a shorter amount of time.
Debt Advice #2 - Savings Goals
Writing down your goals for future use of your money can also be very helpful. These goals need to be realistic and specific to the things you want to do with your money within a
certain period of time.
Short Term Goals:
Things that can be done soon. Give a time range between a few weeks but no longer than a year. Ex: Buy new clothes, save for family vacation.
Intermediate Term Goals:
Things that can be accomplished in 1-5 years. Ex: Buy a car, pay off debts.
Long Term Goals:
Things you would hope to achieve in 5-10 years. Ex: Buy a House, pay for college.
Debt Advice #3 - Create A Successful Monthly Budget
Create a list of all your monthly income. Include all sources such as alimony, child support or any side jobs. This figure will set the cap on your total budget. You can always
change jobs to earn a higher income, or take on a part time job.
Create a list of all your monthly expenses. If an expense occurs less frequently, prorate it to fit a monthly format. Do not forget to include expenses such as housing, food,
transportation, utilities and entertainment. Determine if your income covers all of your current expenses. If the answer is no, then expenses need to be reduced or your income
needs to increase.
Adjust your expenses. This can be done in several different ways. Depending on how much of your expenses are covered, you may only need to reduce certain areas such as entertainment
expenses or dining out fewer times per month. Doing these simple things can help free up extra money to save for your children's college education, family vacations or
retirement.
Add new categories if necessary. Three areas that are often overlooked when people create budgets are debt reduction, retirement savings and emergency savings. An emergency fund
will help ensure that you will have money available if some unforeseen event occurs, such as car trouble.
Debt Advice #4 - Saving Funds for Debt Settlement
The following may help to accelerate your savings to settle you debt quickly.
- Income Tax Returns
- Inheritance
- Income from a second job or overtime
- Home Refinance
- Selling unneeded property or luxury items
Debt Advice #5 - Spending Cuts
Dining Out:
Bring your lunch to work and make a brown bag lunch at home for your children to take to school.
Groceries:
Plan meals in advance and shop with a list. Use coupons when possible and avoid name brands.
Electricity:
Turn off lights, TV, PC etc. when not in use. Run your dishwasher and washing machine with full loads.
Insurance:
Shop around for cheaper home and auto insurance.
Cable:
Eliminate cable/satellite service or cut back on extra subscription channels.
Internet:
Switch to a cheaper Internet provider.
Debt Advice #6 - Budget Guidelines
- Track your personal cash flow.
- Take control of your finances.
- Save money on a regular basis.
- Set and achieve financial goals.
- Strip out unnecessary expenditures once they are identified.
- Discuss with your family members where money should be spent.
- Plan for upcoming events and purchases.
Debt Advice #7 - Savings Schedule
Credit Answers will help you set up a personalized savings schedule that will help you pay off your unsecured debt load in a efficient time manner for a fraction of what you owe*. Call 800-297-6417 to get your savings schedule today.
Debt Advice #8 - Updating Your Savings
Once you are a Credit Answers client, you will receive regular courtesy calls from your debt advice settlement coach to discuss the status of your account and update your savings.
Notify your settlement coach if you receive a lump sum of monies or an increase in income so they will be able to better manage your savings for settlement purposes. Once you have
enough funds accumulated, your debt advice settlement coach will guide you through the negotiation process.
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Get Debt Relief Now!
For a free consultation call 1-800-297-6417 or start by filling in the form below and one of our specialists will contact you. We are here to help you 24 hours a day.
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