Reduce Debt Without Credit Counseling

 Personal Finance  Comments Off on Reduce Debt Without Credit Counseling
May 042016

Here are 5 Smart Moves with Debt

Being in debt can feel like having a heavy weight chained to your foot, dragging you below the surface and drowning you in unpaid bills and a deteriorating credit score. Here are 5 smart moves to unchain yourself from that debt without resorting to credit counseling.

5 Smart Moves with DebtMove #1: Ask your credit card company for a lower rate: Your credit card company wants to keep your business. After all, if you carry with them a large balance at a high interest rate, you are paying them a hefty fee every month. Try calling them and asking them to reduce your rate, explaining that you have received lower-interest offers from other companies and that you are considering transferring your balances away unless they can match those lower rates. Believe me, your credit card company would rather keep some of that income than have it reduced to zero. Remember, there is no need to get nasty or threatening with them. Just be matter of fact about it and see what happens. If they refuse, go ahead and apply to other, lower-interest cards.

Move #2: Improve your credit score: A 50-point improvement in your credit score can save you $1000s per year in debt payments by making you eligible for lower interest rates. Do whatever you can to improve your credit score, including ordering your credit reports on the Internet and quickly correcting any errors you may find there.

Move #3: Pay yourself weekly: You may already have a monthly budget. If not, go ahead and prepare one. Then, divide it into 4 and make it a weekly budget. Now, pay yourself and your spouse a weekly allowance. Once your weekly allowance is gone (even if it is only Wednesday!), agree that you will halt all further purchases until the following week. This is a hard one to implement in terms of willpower. I suggest having 2-3 savings accounts and having one account for each week of the month. This is an easy way to keep track of how you are doing that week in terms of sticking to your budget.

Move #4: Keep a spending diary: Each evening, write down roughly how much you spent that day in a special spending diary or notebook. Create three columns: one for the name of the item, one for how much you spent, and one with a comment that labels the item ìneedî or ìwant.î For the wants, write a sentence or two about how that want was more important than your getting out of debt. By doing this, you will become much more self-aware about your spending habits.

Move #5: Set debt pay-down milestones: Everything is easier to achieve if you have clear goals in mind. Write down only your total unsecured debt. Now, think about the next 6 to 24 months and determine a realistic timeframe during which you will pay down that debt. Next, set two or three pay-down milestones during that time period and write down what your total debt balance will be by each milestone date. Then, as time passes, do periodic checks to make sure that you are on track and make adjustments accordingly.

To loosen the heavy weight of debt from your foot without resorting to credit counseling, you need to become more aware of your spending habits, improve your credit score, be smart about how you spend, and set goals for paying down that debt. You will soon be sitting pretty and debt-free.

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Making a Budget - Monthly

 Personal Finance  Comments Off on Making a Budget - Monthly
Oct 222015

Breakdown of a budget from both your income and expenditure sides.

You need to make a fresh budget for each month. Every time that calendar changes, there are new birthdays, vacations, insurance statements, proms and so forth. There’s no one budget that’s perfect all of the time. Therefore, you need to make a fresh budget for every new month.

Budget should include:

− Pay Checks
− Income from other small businesses

− Part time jobs
− Residual income
− Freelance work
− Child support

Finding Financial Peace

There might be few other areas that we did not cover, but the overlying rule is this: Whenever you receive money during the month, write it in your income column.

If you’re married, don’t divide your incomes. The separate amount each of you earn every month is not important. What’s important is that you pull the two incomes together.

Each use you make every month must be composed down. Rent, phones, link, nourishment and everything in the middle. Once more, since you make another spending arrangement consistently, a few months you will have uses while in some others, you won’t. A blessing spending plan may not be low in December but rather will, in April, or there might be auto protection due. Take it one month on end. Never consolidate months.

Clear all the confusion. In the event you are perplexed about just how to categorize expenditures (does a restaurant visit count as “food” or “eating out”?), just find out what system works best for you. When you’ve got two categories which are clearly distinct (like gas cash and movies), you need to separate them. However, when you spend 100 bucks at the grocery store purchasing food and things to run your home like shampoo and paper towels, you might put that all under “grocery.” If you don’t have the money don’t buy it.

Start Early

Make your budget a few days before the month starts. People get dejected if it is Labor Day weekend and they never made the budget of September. Do not let the month sneak up on you without being prepared. You should have the budget of August ready by October 30.

Each time you purchase anything, write it down. Take 60 seconds when you get home from work to upgrade your budget. Be alert and do this little bit of work daily. You don’t want to open your wallet and find a week’s worth of receipt in there.

Everything Points to Zero

The purpose of each financial plan would be to make both the outgoings and incomings arrive at zero. They should counterbalance each other. On the off chance that you happen to discover 500 bucks left after you have counteracted every one of your costs, the financial backing is not done yet. Benefit as much as possible from that 500 bucks by contributing it or sparing it or perhaps utilizing to escape obligation. On the off chance that you tumbled to do that, you miss on the chance of having your cash work for you.

You should be in-charge of your finances by telling every dollar exactly where it had to go.

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