Step 5: Use recommended Budgeting
Guidelines to get your budget back on track. If one section exceeds
the recommended percentage, you need to cut back there, or, modify the
percentages to fit your budget. In either event, the total percentage
cannot exceed 100%. You need to see your savings build, you need
to see your debt reduce, in order to have the incentive to stay on your
budget to get the debt relief you seek.
Step 6: If you are "keeping up with the Jones's,"
STOP! The Jones's will be glad you did, and so will you!
You might even want to give them the url of this site, after all, maybe
they were trying to keep up with you and need debt relief too?
Step 7: If your budget allows, pay extra on
high interest-bearing accounts such as credit cards. Only increase the
payment on one account at a time until it is paid off. Remember, you need
to see the debt reducing. Larger payments on one account will show this
better than extra payments on several accounts at the same time.
Step 8: If you get a tax refund, bonus, or
other intermittent income, use this money for immediate debt relief, after
you have a cushion set aside for emergencies.
Step 9: Whether debt reduction, or meeting
goals, you need to keep track of all income and expenses. Update your
budget regularly. You should keep on
Top of spending, and your budgeting,
to make sure you don't fall into old habits again.
Step 10: Stop using credit cards. This is
very important to your financial future. Until you are back on solid financial
ground, you need to bite the bullet and quit spending. Especially spending
with high interest-bearing credit cards!
Step 11: Come up with ways to increase your
income: a second job, selling unused items, etc. Get the family involved
in ways to reduce spending and/or increase income. Work together to meet
your goals for debt reduction and financial security.
Step 12: Use the Debt
Settlement and Debt Collection
sections of our site to see if you can obtain any savings on payment of
your debts.
Step 13: Take advantage of online resources
to save money on your spending including groceries, utilities, shopping,
travel and more.
Step 14: As you pay off department store
charge accounts, write a letter to the creditor to close the
account. These cards are notorious for higher interest rates. Also request
they report to the credit bureaus that the account was closed at your
request. Send a copy to each of the credit bureaus for them to include
in your credit file. This shows good repayment history, and responsible
debt management.
Step 15: Never give up on learning sound money management
practices. Make them the good habit that replaces your bad debt habits.
You won't be sorry!