Managing Debt - Get Help With Debt

Are you asking yourself "How did I get in debt? How did I get into this financial mess?"
Do you need advise and a little help managing debt? Spending out of control? Getting a grip on
your wallet is often a financial self assessment away. Stop, take stock, assess your financial debt.

STEP 1 - Managing Debt
stop - take financial stock

Have a look at your financial picture

Grab a pencil and a pad of paper - make sure the pencil has an eraser.
You will want a calculator, too.

Divide one sheet of paper into 2 columns

List all of your monthly income - sources and amounts - in one column.
In the 2nd column list any money assets you have - ie. savings, cashable bonds, cash in the coffee can, all of it.

Divide another sheet of paper into 3 columns

List all of your monthly household and maintenance expenses in one column.
In the 2nd column list all monthly loan payments - ie. cars, mortgages, student loan, repay loan from Aunt Annie, all of loans.
In the 3rd column list all of your credit cards and the amounts owing for each credit card debt and an beside each balance owing write the minimum monthly payment.

Doublecheck your finances and debt lists

Take a little break, have a cup of coffee and sit back and look at your lists, is that everything, is each finance and debt list complete. Don't forget any birthday money that you know you are going to get. Don't forget there's car insurance next month or medical insurance coming due. (divide such amounts by 12 and put them on your household expenses list)

STEP 2 - Managing Debt
assess the financial situation

At this point one of two things is going to happen - you are going to realize that you are coping - that the monies in are covering all of your financial obligations, even if there is not an attractive amount of disposable income after all the monthly debt is cleared or you are going to realize beyond a doubt that there is a shortfall between the two.

If you are managing, but struggling, make a hard determination - let's look at those credit cards. What kind of debt are they packing? Dinners, lunches, extra's?

If there is a shortfall and there is not a reasonable solution at hand then consider a few things - can some of those expenses reasonably be trimmed away, can you dispose of any of the assets (ie. a 2nd car) and lower your payments, lower your overall debt.

STEP 3 - Managing Debt
get help with debt, get help with finances

More often than you think - the solution is right in front of you. Managing debt and finances is something most people can do, become financially accountable to your own life. If you are overwhelmed and need help, consider financial counseling. There is qualified and experienced financial help available.

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