Personal Finance-Personal Debt

 

We have become a nation of spenders. Most American households have more debt than they can pay on a good day and the loss of a job or a second income can be devastating.

 

In a recent survey 5% of households said their debt was “a heavy burden” and 4% were behind on at least one debt commitment. 20% of people say that they neglect checking their bank balances because they “are too scared to find out how much money they have”… or maybe that’s “don’t have”.

 

We have used our credit cards to buy groceries, gasoline for our cars, clothing that was over priced, and entertainment we couldn’t afford. Something must be done if we are to get control over our personal financial situation and there are ways to do just that.

 

If you find that you just have more debt and more monthly payments than you can meet for whatever reason, there is help in the form of Consumer Credit Counseling Service (CCCS) and websites such as “lower my bills” and “money net” It will take time but you can get out of debt. Staying out of debt is another matter.

 

You must make a budget. You must know exactly what your checking account balance is at all times. You must never make “spur-of-the-moment” purchases… PLAN all expenditures for clothing, household goods, entertainment, etc.

 

Take the time and put forth the effort to learn to do things for yourself that you hire others to do for you. This can save you hundreds of dollars a year… maybe thousands.

 

Invest in some good Personal Financial Management Software for your computer and learn to use it effectively. There are a lot of different programs out there.

 

Learn to do comparison shopping and use those coupons that come in the Sunday paper. Spend your money with a plan and don’t plan to spend all of it.