The undeniable truth about ignoring your Debt Problems
Unfortunately in this current climate more and more people are experiencing Debt Problems. This may be due to a job loss or they may have fallen victim to the downturn in the economy thus having reduced earning potential. It could also be something as simple as high medical bills or an unexpected illness cost or maybe even it could simply be “hidden” over spending that can finally tip the balance into a negative rather than a positive. Debt Problems will send you in a spiral of frustration, anxiety and even depression at times, so knowing what not to do with your money is really very important.
There are many different things that someone could do to get rid of some of their debt and different plans work for different individuals, One of the key things that you must do is not feel bad about your financial situation, this kind of thing happens to everybody so there is no need to hide away from debt. Debt issues can and will occur before you even realize how terrible it has gotten at times, so always be aware and try and be cautious with your funds, no matter what comes about. There are many services out there now for people who need Debt Solutions.
Working with my own clients, highlights the need for honest and open communication when it comes to debt. The first thing that should be looked at in any instance is to do a “fact finding mission” on your own financial situation. This should compromise of the following,
· All income that is coming into the household including social welfare pensions etc.
· All loans including balances owed and monthly payments. (This should also include friends and family who may be owed money)
· All expenditure that is regular, insurance, phones, crèche fees, petrol costs etc.
· All expenditure for the home, food, clothes, medicine etc.
Once you have the above done ideally you should see that your income is higher than your expenditure. If this is the case then the next thing that has to be looked at is if there is enough money to service all the Debt Problems and still be able to live comfortably. The only way to do this is the dreaded B word. Most people cringe when they hear the word Budget as it is usually associated with the government increasing taxes and decreasing incomes. This is certainly not always the case and a personal budget is the key to controlling spending and it will also help you to become more aware of the money that could possibly be put to better use elsewhere. In other words it might help cut out more foolish spending.
You may find to your delight that just budgeting and being aware of the money you spend means that you will have money left over at the end of each month and now you have to add a plan for this money. Remember if you fail to plan, you plan to fail. If you find that your income is not enough to service your debt and credit cards etc then you should think about talking to an unbiased Financial Coach. There are some very successful Debt Solutions and we are more than happy to help you with any debt advice if you like to Contact Us.
The above steps are just the tip of the iceberg when it comes to solving Debt Problems and with a Financial Coach program tailored specifically to you we will re-float your financial titanic.
The next article “Secret Debt Solutions financial advisers will never tell you!” will focus on structuring your finances so keep an eye out for upcoming articles on this site.
Author: Dave Kelleher