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Debt Management and Health Debt Management and Consumer Counseling
It isn't very hard to get into financial difficulties. Getting out is a lot harder. It might be a bit painful, but it can be done.
And once you have breathed out-of-debt air, you will never again want to find yourself in deep debt waters again.
Most people do not view credit cards as loans, but that is precisely what they are -- loans. When you hand a credit card to a cashier, you have in effect borrowed the money to pay for your purchase.
The same is true when you enter your credit card information on websites to buy merchandise. It's true that credit cards are a convenience. They make buying things much easier and so much quicker, but they are loans.
When you engage the services of a consumer credit counseling service, you will be asked to supply a list of your debts. You will find that some debts can be renegotiated -- even some secured debts can be renegotiated, including mortgages. You will also find out that your unsecured debt (credit cards) can be renegotiated. But there is a catch there.
A credit counselor is usually in a position to stop the interest and late charges from continuing to mount on your credit card bills. Interest rates can be decreased and late charges can be eliminated altogether. The catch is that the accounts will be closed...permanently. You cannot continue to use those credit cards, and you cannot apply for another credit card until your debts have been paid off in full.
Your total monthly obligations can be reduced by quite a bit and you will be able to live within the budget that will be created for you. It sounds really painful, doesn't it? The truth! You are going to have to make some major adjustments, but that isn't necessarily a bad thing.
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| Debt Management Wiggle Room Debt Management and Health
There aren't many things in life more stressful than having bills due that you cannot pay, a mail box full of second, third, and final notices, and bill collectors calling day and night.
Stress itself is a health issue and can also cause many other health issues. Financial health has a direct connection to physical and emotional health. Financial problems lead to relationship problems which lead to emotional, mental, and physical health problems. Controlling your financial life is important not just from a financial standpoint, but from the relationship and health standpoints, as well.
Of course, I am not suggesting that you can avoid every health problem, all stress, or that your relationships will flourish if you just stay in control and manage your debt well. I am saying that you can avoid a lot of unnecessary grief by making a plan and managing your debt in order to prevent stress and all of the problems that stress can and does cause.
Make a plan -- think budget. Take control of your financial situation. A written plan takes the pressure off. You don't have to remember things. You simply use your budget and your financial plan.
Pay your bills on time and in full each and every month. When you conduct your financial life in a well-planned and responsible manner, you will find that other areas of your life become better organized and better functioning as well.
It isn't easy to take control in midstream, so to speak, but it can be done. The first step to relieving some stress in your life is to find a budget form on the Internet or in a brick-and-mortar store. Follow the directions that will be provided.
As you take control, you will relieve your stress and improve your physical, mental, and emotional health as well as your financial health. |
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| Debt Management and Family Crisis Debt Management: Getting the Priorities Straight
Using half your paycheck to buy lottery tickets in hopes of winning millions instantly is not a satisfactory debt management plan. Successful debt management is based upon truth, reality, and keeping your priorities straight.
The necessities of life must come first when you make your debt management plan. You need food, shelter, utilities, transportation, and clothing....and pretty much in that order. After the total cost of these necessities is subtracted from your bring home pay, what's left is your disposable income.
How much you spend on each of these necessities will determine the total cost of your necessities. When you cut the cost of any of the necessities, you will have more disposable income and when you add to the cost of the necessities, you will have less disposable income.
My daddy summed it up pretty well for me. He said, “The less you spend on what you have to have, the more you will have to spend on what you want to have.”
You have to make your own choices, of course, but here are just a few ideas that might help:
1. Food: It costs less to eat at home than it does to eat out.
2. Shelter: Less space costs less money....usually.
3. Utilities: Raise the thermostat by two degrees in the summer and lower it by two degrees in the winter. Turn off lights when you leave a room. Don't leave water running.
4. Transportation: A five-year-old car will take you to the same places that a new car will take you.
5. Clothing: Clothes purchased at discount stores costs less than clothing purchased at upscale clothiers.
Debt management is all about getting your priorities straight and making choices. Priorities are nonnegotiable, but how much you spend on them is negotiable. |
Related Topics: The Debt Management Trap-Credit Cards,
Debt Management and Credit Cards, Debt Problems and Debt Management
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