Educate yourself on debt, You are not the only one going through financial difficulties. Studying the term credit is very important because, Roughly 37% of Consumer Debt as June 2008 is revolving credit such as, Credit Cards and purchasing a new automobile. This is defined as credit which is repeatedly available as periodic repayments are made. The most common type of recurring credit would be credit card debt. The 63% of that debt comes from loans that are not recurring by nature such as, automobile loans, student loans, loans for vacations things like that. The average car loan is 25,000 and loan to value ratio is 93% which means we are using more credit than our own money.
Get in the driver seat Taking Control- Now that you have a few statistics to look over now you can stop living paycheck to paycheck and be happy again. This step is very important every pay period pay yourself first that means before any bill is paid, Put yourself first it doesn’t have to be alot but it shows that you are taking your life back and that’s key. The first month try $40 a paycheck, I know your thinking what is this? Trust me it works take that money and open a savings account and tell them you don’t want a ATM card. This will keep you from breaking and taking the money out of the account. Each month increase your saving by $20-$60.
Planning ahead Planning Ahead will keep you from over spending and you are less likely to spend haphazardly you should plan for every thing big or small. You should have a planner with a calendar in it and also, clear envelopes with the planner you should schedule grocery shopping, holidays, birthdays, vacations and also how much money you have set aside for each item. The longer you manage the small things the better you will begin to feel about your situation.
Think carefully Prioritizing is so important because we will try to rationalize why we are purchasing something that really isn’t important. The other thing is, DONT BE BROKE MAKING SOMEONE ELSE HAPPY!! what I mean by that is if there is a bill collector constantly calling you asking for payments but you rally don’t have it to spare then make them wait for it. You don’t want to be in the position where you don’t even have gas money because you have made a bill collector happy, sure it may affect you credit for a short time period but atleast you and the family will be ok for now. The key to prioritizing is knowing what you need and not what you want in life like Example: Needs(food,water,clothes,transportation,shelter) Example: Want(vacations, expensive houses, Video games, expensive cars, latest fashions) Identifying these factors will help you organize you life and your bank account.