Use A Debt Checklist To Examine Where You Are
A Debt Checklist allows you to look at items and areas of your financial life. You need to
examine these to gauge how you stand. Even if you believe you are in good shape take a close
look at these areas to be sure.
- Your Budget. Almost nobody likes this word, which is why so many people
have problems with their finances and debt. You need to know how and where your money is
being spent. In addition, you should be sticking to a spending plan.
- Your Savings Account. You should pay yourself each month. To do this
you need have an account in place, in which you keep your funds. At least until you can move
them to an account with a higher rate of return. Visit your bank or credit union to set one up.
- Your Use Of Credit. You need to review your use of credit to see how,
what, and where you are using it. Using credit to pay your bills or buying groceries is a recipe for
trouble.
- Your Percentage Of Income For Debt. Nothing makes it harder to stay
with your spending plan than credit card payments. You are paying for your past while trying to
purchase your present. If your percentage of income going toward debt exceeds 15 you could be
headed for trouble. Any amount over 20 percent, you need to put on the brakes.
- Your Minimum Payments. These add up. If you are to the point where you
ca only make minimum payments on your debts, you will stretch your indebtedness far into the
future. You don't want to extended like this. Find ways to add extra to one payment each
month. Then when you pay one off move the extra payments to another.
- Your Protection. You need to put into place and maintain protection for
your assets. Your home, autos, life, and health, need be insured. Make certain the protection is
in line with the value of your assets and the needs of the people whose lives would be effected.
- Your Retirement. Two factors come into play here. You are going to live
longer and life is not getting any cheaper. You should pay into an account for retirement every
month. More is better. If you have been paying attention you'll know not to depend solely on
social security.
- Your Job Skills. Things change and change rapidly. A constant update
should be part of your plan. You need to be able to obtain better jobs, or sometimes any job. The
more skills you possess the better your chances.
- Your Money Skills. Since money education is not taught in school you will
need to learn on your own. You need to learn to manage your money, even if you turn it over to
others. Become familiar with how credit and debt works, so it doesn't work against you.
Once you have taken this inventory get to work shoring up the areas where you are weakest. Put
into place the ones you don't have. Then check back every so often to make sure all is well and
as it should be.
(C) 2004 David Wilding.
David Wilding has for the past ten years worked with groups and individuals to help them reach
the goal of being debt free. Visit his web site http://www.debtattack.com for more ideas, tools,
and strategies.
MORE RESOURCES:
|
|
|
RELATED ARTICLES
Credit Card Debt Freedom is Possible
Credit card debt have you drowning financially? You're not alone. The average American household carries $9,205 in credit card debt, according to CardWeb, an online industry tracker.
Mandatory Credit Counseling for Those Considering Bankruptcy
Most Americans are aware of the sweeping changes in U.S.
Save Money When Going Out
It seems as though whenever we go out for the night, it costs much more than we originally intended to spend. Having a 'night on the town' shouldn't cost you a whole weeks salary.
Bankruptcy - Your Fresh Start
Most American consumers are living too close to the edge. They are carrying too much credit card and mortgage debt and have too little in the way of savings.
Dont Drown Your Debts, Manage Them!
Are you among the millions of people who have found themselves unable to make even the minimum payments on credit cards and other unsecured debts? If so, there is relief in sight. It is no longer necessary to keep paying constantly but never really make any progress towards reducing or eliminating your debts.
4 Simple Ways to Solve Your Debt Burden
Getting Behind
Getting behind on your debts owed can be a very frustrating and trying time for you and your family. Depending on how far behind you are, there are other repercussions, such as your credit rating, that will affect you further down the road.
New Bankruptcy Law Makes it Harder to Stop Foreclosure
On October 17, 2005 President Bush's sweeping bankruptcy reform law goes into effect forever changing the rules of debt collection in this natiion. Consumer advocates and the public appear to be completely unaware of the total and complete victory of the creditors under the new legislation.
Eliminating Credit Card Debt
The overwhelming task of eliminating your debts can often seem like an uphill battle. Without the knowledge and expertise of a professional on your side, unfortunately, the odds are not in your favor.
Debt Management - Is It the Right Choice For You?
Debt Management plans offer credit counseling clients a different and new approach to tackle their finances. Finding out if a debt management plan is right for you can take some time.
Eliminate Your Credit Card Debt, But How?
Can a debt consolidation loan eliminate your credit card debt? A consolidation loan might (or might not) be the key. There are several things you must consider when making the choice to consolidate debt using a debt consolidation loan.
Learn The 15 Debt Elimination Steps You Must Take Immediately!
What Everybody Needs To Know..
5 Methods Toward Reducing Your Debt
Decreasing your debt is paramount to having a good credit rating as well as giving you peace of mind. You want to get out of debt, but not all debt reduction options may be beneficial.
Getting Past The Idea Of Budgeting & Saving Money
I'm sure you'll agree that budgeting, saving money, and eliminating debt are very appealing ideas. If effectively tackled, these goals can secure your financial status for the future, and allow you to live a comfortable, debt-free life.
Five Hot Tips To Get Out Of Debt Forever
The financial and psychological burden of being in debt causes us and our families continuous emotional stress. That stress eats away at the quality of our lives and leaves us feeling powerless, angry, depressed and helpless.
Credit Counseling or Bankruptcy: Which is Best for You?
People often get to a place where they simply can't pay their bills, especially in today's economy which is not particularly sympathetic toward the poor or even the middle class. Inflation has impacted nearly every facet of daily life including food, gas, rent, clothes, utility bills and more.
Debt Settlement
What is debt settlement?Debt Settlement is a process to settle your debts with the creditors. With debt settlement, a third party or you yourself negotiate with your creditors to come up with a reduced debt that you agree to pay.
Credit Card Debt: How to Get Rid of It
This method is simple, but requires some discipline.First, you have to stop any new spending on your cards.
Debt Management Systems
What is a debt management system, and when do you need it? Like any kind of management system, debt help systems can be good or bad. We will take a look at what you can do to manage your debt better.
What the Mail on Sunday Said
Anyone considering Bankruptcy may have experienced fear after reading an article written in The Mail on Sunday with the headline "Bankruptcy cheats face crackdown". But, how much of what was written was in context of the reality of Bankruptcy as it is today?The article implied that since The Enterprise Act 2002 the rise in the number of people going bankrupt was due to them using the Bankruptcy route as a "Get out of jail free card".
Take Careful Consideration Before Filing Bankruptcy
Filing bankruptcy is not fun! It is a last resort if you are interested in keeping an active and acceptable credit report. Bankruptcy is the condition of bringing all your assets and deficiencies into an insolvent state.
|