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

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

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

Finance Blogs
best blogs