>> Tuesday, November 18, 2008
I’m pretty sure many people are looking at their Christmas lists right about now and trying to figure out just how they are going to buy all those presents that their kids “just have to have” or that the rest of the family “expects”.
Or maybe you’re wondering just what you’re going to do when all those January credit card statements begin to show up in your mailbox.
I know exactly how you feel… I’ve been there. The first thing you have to do- and I know this is difficult- is stop spending money. You must set a budget and you must stick to it. Period. If that means less expensive gifts, homemade gifts or no gifts at all for some people, you must make those changes.
Next, figure out what your “must have” expenses are. Food, shelter, basic clothing (not those shoes you think you need… Basics like pants, shirts, underwear, winter outerwear), heat & electricity, gas… Trust me, you can live without cable, eating out and trips to the mall.
After you’ve cut all those non essentials figure how much you have going out on unsecured debt like credit cards and signature loans. Is it more than you have left after necessities? What is the best way to handle the month left at the end of your money?
Though many disagree with Debt Consolidation it can truly be a life saver if you make sure of two things.
1) You can not accrue any additional debt
2) The interest rate is lower than the debt you are consolidating.
Bills.com has a nice Debt Consolidation info page filled with a glossary of terms (very handy), articles and advice. If you work it right Debt Consolidation can lower your payments, save your credit score, keep you out of bankruptcy court and help you get out of debt.