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Debt Buster - Good Money Management Methods

By Edited Jun 3, 2016 0 0

Learn how to manage and budget your money for different needs

The debt buster methods of money management

What is the best debt buster method that you have in mind? Once your debt has been blown out of proportions, what do you want to do if you think you’ll have a hard time to do repayments? You may have different ideas running in your head but make sure not to be tempted to file for bankruptcy because if you do file for it then you ruin your chances for the future. Debt consolidation may be one of your options but always remember that loans are still to be paid. That will also add up to your continued burden of paying your debts because you have to pay interest on the loan and you will keep on worrying about it until your loan is finally paid off. Now, what is the best option that you have? The answer is simple; establishing a budget.

Establishing a budget, keeping track with all your expenses is the real solution for fixing your damaged credit. You need to save your way out of debt and your monthly worries. Keeping record of all your expenses is the better idea so you know what you are spending on with the money that you get every payday. By knowing all that you are spending on, you can then eliminate unnecessary expenses then you can start to save.

When decide to establish a budget as a debt buster, you have to find a way to keep track of your expenses. With all the things that preoccupy your mind, money management software program can surely do the job for you. This kind of software program will surely assist you in budgeting and saving. Rest assured that by keeping track of your expenses and even small expenditures you will save a lot in due course. With the use of money management software programs, your income and expenses are all put in the correct categories and show you what you have left over.

If you like you do the tracking of your expenses on your own; you can do it as well. You can put all your financial record on a form of your preference. On the form, you can write your income on one side and your expenses on the other side. Since you are keeping track of your expenses, you have to update your record as often as you must. Write down what items you spent on, how much did you spend for each item and how much you put in your savings account. Record everything from expenditures to earnings and how much is left of your money. Through this, you will see a picture where your money is going and if you see that each week there is not enough left to pay your essential bills, then it is time for you to change your payment system and create a new one that would best fit your need while having more to save. Trial and error it is!

Now, if you are able to pay your bills, what should you do next? Again the answer is simple. Try to make as large payment as you can on your necessary bills each time you pay them. You need to do this to avoid getting stuck paying the same huge amount of interest especially on your credit card bills and mortgages every month. There is less left for you but you have to survive and can actually survive by cutting back on the non-essential things such as: going to the movies and eating out. You can still enjoy good movies through home video viewing and enjoy good delicious healthy food by cooking at home. You save money by turning off the lights and water when not in use and limiting unnecessary phone usage. These are simple thing that will surely help you save money.  When you are able to get your debt off your back through making these cutbacks, you know your sacrifices paid off.

Another debt buster is making a survival budget. When you make a survival budget, you have to be aware of the absolute minimum you need to survive on and you have to cut every expense down to its lowest. In doing this, you have to budget how much you spend on each meal, make sure that you do not spend on any unnecessary things and use wisely the basic needs such as water, telephone, electricity, cable TV, and the like so as to spend less and save much more.

Sacrifice for a while; follow your survival budget for a couple of months and be shocked at how much extra money you will have to pay your bills and pay that debt off your back. Make sure to cut back on the non-essentials and keep up only on what are important such as health insurance or your rent.  But of course, when you have bills to pay and debts to bust, you have to look at your income. If you think your income is not enough, you can find a better paying job or you can find yourself a second job. When you increase your income while cutting down on your unnecessary expenses, you will surely repair your credit before you know it and that is a better debt buster. 



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