Free Debt Management & Bankruptcy Articles

Professional Authors - Professional Articles

Debt Management Involves the Whole Family

Considering debt management is a long term project that affects the whole family, the best thing to do is to get the whole family involved. One way to do this is to call a family meeting, sit down together and explain that there are going to be some changes, and why these changes are necessary. Even younger children need to get involved in order to understand the changes that are coming, and appreciate that they are going to be for their benefit.

Once you have explained to the whole family why it is necessary to implement a budget you have to make it visual for them, especially for children. You may like to sit down at the table and pull out all the bills you can find. Every bill can then be judged and categorized. Each one can be put into a separate pile. One way to classify bills is by their frequency – for example some expenses such as mortgage or rent payments, and utilities will be payments of an ongoing nature and are a necessary part of having somewhere reasonably safe and comfortable to live.

Another pile may contain bills that represent onetime expenses, like a mail order or credit card bills you want to pay off. You will obviously have other expenses such as groceries or fuel which are necessities but for which you do not necessarily receive a paper “bill” as such. If it is easier to visualize, you might like to right “groceries” and an average weekly or monthly spend on it to represent these types of expense.

Once you have piled all of the bills you can prioritize them. The most important ones are the ongoing bills that need to be met each month. These are the bills that put a roof over your head and the heat on in the house. Next in order will be groceries and other costs which ensure that you and your family can do the things they need to do. (For example, if you need to drive or take public transport to work or school, the costs of that transport will be included here.)

While you may not know in advance exactly what these costs will be, it should be possible to make a reasonably close estimate based on previous expenditure.

Once you have the necessities covered, you can start balancing your new budget. Make a list of your reliable income for each month and compare that to your list of ongoing and necessary expenses. If you have money left over after covering these expenses, you can use that to pay of the one-time bills or pay extra on your debt, creating the situation where you gain money when the debt is paid off.

When you don’t have any money left after paying for necessities, hard but crucial decisions have to be made. This may mean that you need to look at downsizing the family home or vehicle(s), or that you have to provide some kind of extra income. When your children are old enough they may need to get a job to pay for their own entertainment or clothing.

These decisions may be met with some level of complaining from the whole family, but when you have been completely honest and showed them what the situation is, they will come to understand, and appreciate that learning about balancing a budget can be a useful family exercise.

Post has no comments.
Post a Comment

Captcha Image

software interest deals in writing repay loans order report liability installment plans payday loan companies mortgages personal finance credit company household items regain control children saving salary good credit hobbies past bad debt younger children utility payments repay good credit rating home debts visualization payment behavior stop harassment credit card debt expenses emergency savings account phone calls bankruptcy debt settlement allowance good debt sickness child support chapter 7 specific budget categories debt management tips debt company budgeting bad financial decisions loans debt spend money credit checks gambling debts management tips budget categories credit accounts cancer payday loan get out of debt short sale debt traps paycheck cash saving great budget ideas new job unemployed loss of income money debt free borrower creditors credit card company investing taking responsibility budget ideas purchase protection overcharging prioritizing paying bills classify bills deb consolidation secured loan credit card help Chapter 13 credit scores monthly payments losing your job credit report personal finances social services injury gambling problem charitable organisation car loan lose your job rebuild good credit domestic support paycheck info financial security your rights part time job common debt traps interest rates account interest ongoing bills debt collector help home equity loans cable bill monthly budget security borrow money finances handling money debt relief careful handling debt relief agency groceries total balance live your life debts bills debt solution learning experience seperate accounts doctors more income government assistance credit repair take control of debt worksheet need money honesty medical bills Consolidation Company loan amount budget sheet rent payments credit consumer lawyer account charges initial research debt collectors credit score debt problems family assistance own money financial education court appearance help checking account modified payment plan discounts check card lending company introductory offers school jobs borrowing unexpected expenses insurances debt collection agency become free mortgage payments family budget savings overbearing bills saving money bank paying out debt credit rating debt consolidation medical debt low interest interest rate monthly bill pay off debt great budget budget original creditor common debt hospital full details pay off bill telephone bills debt management advice extra payments savings account whole family bank accounts debt payment period invest money implement a budget checks fly-by-night management advice insurance less money repayment plans credit companies children budget installment plan buying a house second job tracking money credit reports debit card loan harassment assets piling debts good budget account fees high interest rate candidate restrict spending loan agents back support credit bureaus unreasonable expectations medical bill loan management program credit card debt programs ill health monthly payment loan companies teaching children finance receipt debt management illness bad debt management flat broke trusted friends reduce debts house loan understanding home equity home equity child support debt credit card traps purchases save money filing bankruptcy extra money debt consolidation child spending internet making payments negotiate payment frequency overspending losing a job understanding negotiation tax info job loss control spending good credit record comfortable living legal action professional credit cards building debts interest payments lending companies managing debt unsecured loan spending education asset info credit limit income cash card bad debt credit card companies credit history help with debt live within means debt consolidation loans down payment credit line debt management mistakes

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
best blogs