Make a list, writing down everything that you owe. Include all of the credit card bills, financial loans, mortgages, auto insurance, health insurance, life insurance, burial plans, car payments, house payments, rent, home loans and utility bills. Include monthly telephone bills, college loans and tuition fees and include every cent that you pay out. Include on this list all of your medical bills including those for doctors, hospitals, chiropractors and anything at all that is medical related or that is paid out regularly.
Add all expenses of running and maintaining a household to that list. Write down how much you pay out for groceries, paper goods, entertainment, personal hygiene, grooming such as beauty shop or barber shop visits and manicure or pedicures. Include weekly school lunches and expenses that are related such as school lunches, breakfasts and snacks.
By now you should have a long list.
Double check at this time and make sure that you haven’t forgotten to write anything down on this list that you spend money for.
Total the list of expenses and bills up and find out what your monthly expenses amount to.
If that total is more than your total income, you will need to go back over the list and search hard to find any areas that you can possibly cut down in. Do everything that you can to cut as many expenses out as possible.
Once that step is completed, you will go back over the list once again. This time, you will need to contact each creditor and ask if they will consider accepting a lesser monthly payment from you for awhile, at least, until you can get back on your feet a little better.
Contact all of the insurance companies also and ask them if there are any lower payments available to you. Perhaps they offer a less expensive plan that will be suitable for you and your family for awhile.
Contact the cable company and telephone company and see if you can bundle your services for a lower monthly payment. Ask these companies if you are receiving the lowest payment option available and if not, ask them to inform you about what the lower ones cover and include. Sometimes it is possible to get a lower telephone rate just by dropping the long distance service from your plan for awhile. You may want to consider dropping cable and/or cell phones or land-line phones temporarily.
You may also wish to consider cutting up those credit cards and try to pay more than the minimum amount whenever you possibly can. Set your mind to never pay any more of those late fees on any of your bills.
Consider taking out a consolidation loan if you can find no other method to get within a budget that will allow you to be able to pay off your debts. It never hurts to ask, so call them all up and ask.
Take a real close look at your household expenses and try to come up with ways to lower the utility bill. You might be able to lower the thermostat on your hot water heater, lower the thermostat for the furnace or even add a little insulation to doors, windows or walls in order to help lower that utility bill! Remember to unplug any electrical chargers for telephones and other accessories that use power even when not in use also.
Take a look at the weekly expenses next and see if there are ways to cut back on those. If you are a regular user of paper goods such as paper towels, paper plates, aluminum foil and items such as those, consider if you might could stop using them for a little while or not use them quite as often.
Look at your grocery items and see if you can save money by using coupons, buying larger amounts and breaking those down into smaller packages, buying items that require cooking instead of being microwavable or instant and by using leftovers for meals or meal additions! Every little bit will help you to get within your budget and this is what getting into a good budget is all about.
You may want to try your hand at cooking low cost meals more often. Consider eating in more often and less eating out. Consider packing lunches instead of buying them. Try to only go grocery shopping once a week if possible.
If you find you are seriously in debt trouble, consider debt counseling. There are many free credit counselors to be found online but be careful, many are scam artists. Check their credentials and get references whenever possible. There is so much more that can be added to this article but I hope it gives you a general idea of what methods can be used to get yourself on a budget that can work for you and to help you get those credit card debts paid.
If it is possible to set aside just a small amount each month or payday, you should try to start saving something. Any amount will help you to get out of debt and get those bills paid because it will grow if you keep adding to it..