Self Help

Self Help
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Self-help by Budgeting. You need to take control of your personal finances whether you are single, with family or dependants. Start your self-help with preparing a budget. List down your income from salary, bonuses, overtime, dividends and interest. Total it-up. Prioritize your expenses with the most important expenses topping the list. List all the expenses which are fixed like rent, insurance premiums, loans, mortgage, electricity, gas, water, car expenses and total them-up. List the variable expenses and check what you can do away with and what you can minimize. Variable expenses include entertainment, recreation and luxuries. If you have a budget already, revise it. Some things can wait for a while. Take self help action and change your lifestyle. Review your goals and amend them realistically.

Eliminate the expenses which can wait until your financial situation improves. You may be expecting a promotion and a salary increase or changing your job to one that pays more. You may be finishing paying off your car loan, education loan or house loan too.

Financial Education: Educate yourself using available websites and programs on financial literacy.

Saving:  Save money as much as possible and take insurance to protect yourself and your property against unforeseen losses.

Self-help by Consulting Creditors: Do not wait until your debt account has been handed over to a debt collector, this may be too late.

Be proactive and take self-help action and the earlier the better. Contact your creditor and re-negotiate the terms. You should explain to them why you are finding it hard to pay. They may be willing to lower your payments, defer the payments to sometime in the future or consolidate your loans into one loan with a longer repayment period. Whatever it is, take the initiative and negotiate. 

Debt Collectors: If it is too late and you find that your account has been turned to debt collectors know your legal rights.
Self-help by Managing your debts. There are repercussions when debts are not well managed. If you took a loan using your car as security and you are unable to pay the loan, the lender may repossess your car and charge extra charges for towing and storage which they will add to the loan making the debt more. The lender may even sell your car. If you realize that you are unable to pay the loan it is better to sell the car yourself and use the proceeds to pay the loan.

You may find yourself unable to pay your home mortgage and you are not alone. The hard economic times have made life hard for all of us. People have been laid off from employment, interest rates have gone up and the cost of living has also gone up. Circumstances may have changed with some falling ill and others disabled. Your home may be facing foreclosure.

There are credit counseling agencies which will help you manage your debts (secured and unsecured) including your credit card debts without affecting your credit rating.

Last modified onTuesday, 02 April 2013 15:56
More in this category: « Self Motivation Credit Repair »

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