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

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

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

Finance Blogs
best blogs