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

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

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

Finance Blogs
best blogs