Too much debt? It happens! Financial circumstances change all the time. Your income goes up (or down). Your debt decreases (or increases). Income and debt are not constants.
It’s not a problem if debt increases or decreases if you get a better job or get a raise and are earning MORE money. But it’s a disaster if your debt rises or even stays the same when you lose a job or have your hours cut and are bringing home LESS money.
Fuel Cards
I hope it hasn’t happened and won’t ever happen to you but if you find yourself in the uncomfortable position of owing more money per month than you bring home each month you need to take steps to “fix” the problem or you will surely drown in debt.
Here’s three steps that will help prevent drowning in debt:
o Add up your regular monthly expenses and find ways to cut the fat; don’t eat out…eat at home and eat hamburger rather than one of those big juicy steaks, take the bus or get into a carpool, combine errands, wash your own car, cut your own grass, invite friends for an evening of cards rather than an evening out, etc.
o Cut your credit cards into tiny pieces and throw the pieces away! Use good old cash to pay for all of your regular expenses (rent/mortgage, food, fuel, etc.).
o If, after you’ve taken all of the cost cutting measures you can take and have quit using your credit cards, you find that your financial obligations still exceeds your income, consider getting a debt consolidation loan.
A debt consolidation loan can lower the total of your monthly payments. If you decide to apply for a debt consolidation loan, you’ll most likely be offered free credit counseling. Take advantage of it.
A debt consolidation loan can prevent drowning in debt and credit counseling can help to keep you on solid financial ground in the future.
Drowning in Debt Prevention?
Get your FREE EBOOK “How You Can Set Up a Family Budget” by Grace Bridges. To learn more about debt, credit repair and personal finance visit http://www.debt.uselfhelp.com
Grace has been involved with the credit industry for more than 30 years.