Wrangling control of your wayward finances can be a challenge, but it’s never too late to regain control of your money. Mounting credit card debt and increasing overdraft fees can be the sign your money management plan needs an overhaul. Here is a quick cheat sheet to get you back on the road to financial success.
Start by creating a very detailed list of all your debts and monthly expenses. Ideally your monthly debt repayment should be below 20% of your budget. If your monthly debt installments exceed this benchmark, you will need to search your expenses for areas to cut back. Once you’ve made your list of debt and expenses, then you can begin work on your budget.
You will need to create a monthly spending regimen. This is not the time for unrealistic expectations, so start with your bill and debt payments and allocate the remaining money for living expenses. The next step is likely the hardest. You will need to maintain your resolve to manage unbudgeted spending. Additionally, it’s important to not borrow any money or acquire additional debt until you’ve managed your budget for several months and have paid down your debt.
Set an allowance for your daily expenses. Withdraw cash from the bank weekly and leave your cards at home when you set out to shop. Cash will help keep you committed to your budget until you can manage your finances without the extra assistance. Let the internet help you maintain your budget. Set as many of your payments as you are comfortable with for auto debit. Auto debit will allow you to pay your bills on time monthly without worry and save late fees.
Everyone makes mistakes or encounters setbacks. Check your bank and credit cards and make sure you are receiving the best rates and the lowest fees attainable. If you happen to overdraft or miss a payment, then you want a card and bank that will soften the blow. Many of the online banks have very low overdraft fees and free checking accounts. While you are working to lower, your credit cards and banking fees go ahead and destroy your store cards. These store cards have the worst rates, and when you are working very hard to adhere to a strict budget seemingly free spending is a potential pitfall.
If after making all these changes you still find yourself in financial deep-water, you may need to enlist the help of a professional. There are reputable financial assistance companies and debt recovery companies that are there to help.