Question:

What's the best option for getting money under control?

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Our money, as I'm sure a lot of people's money right now, is tight. Even with over-time, it is hard to make ends meet. Is credit consolidation a good answer? Bankruptcy? are there other options?

Thanks in advance for all input.

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3 ANSWERS


  1. destroy all credit cards and only pay cash for what you buy,


  2. hello -

    here are some tips and ideas -

    List out how much money you have coming in each month (paycheck, alimony, side jobs, etc.).

    List out what your fixed costs are (rent/mortgage, car payment, car insurance, phone, cable, student loans, commute costs etc.) If you have credit card debt look at how much per card and which has the highest interest rates.

    Track it by category -

    retirement (401K, etc.)

    home

    car (payment, insurance, etc.)

    gas

    cable/electric/water

    groceries

    eating out

    clothing

    movies/plays (include the popcorn)

    books

    newspaper (if you already paid your news paper or magazine subscription, figure out the monthly cost and include that)

    hanging out with friends (bar, pool etc)

    non meal related drinks/snacks (Starbucks, diet coke, snacks)

    other

    other

    (other could be alimony, whatever, things I did not list out but you have to pay)

    and you will see quickly where your money is going to go. Then you can see if it is all the right places, or if you want to make a change and not buy so many clothes, see so many movies (or pass on the popcorn) etc. Do you need to have the car you have or is there a way to get a vehicle without a car payment? Do you need HBO?

    Consider what is really important to you and what is not and spend accordingly.

    Be sure to put all left over money into retirement savings somewhere and not just spend it on something else (or put it towards paying down credit card debt). And keep tracking what you spend for at least 6 months. that will help you get into habits and patterns that are good ones.

    Retirement savings are very important, so if you have a 401K or the equivalent, dont stop contributing to that. I see so many questions here about stopping contributing or taking the money already saved out, dont do that. The value of the compound interest is huge.

    feel free to email me for more info if you like

    good luck


  3. How To Repair Credit

    If you find you can't pay

    incoming bills, don't

    panic.

    Call the creditor. Let

    him/her know you're

    having financial difficulties.

    You'd like a payment plan.

    Will he/she work with you?

    Some credit card companies

    will reduce interest on your

    credit cards. It isn't

    automatic, ask about it.

    Read the full post on my blog.

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