Making a Budget After The Divorce is Final

Hi,
It's now time to assess whether or not our income meets our monthly expenses. It's relatively simple to determine this. We total our monthly bills and compare the total to our monthly income. In many cases, people find that their expenses are higher than their income. Here are a few suggestions to reduce expenses:
1) Look at areas in which one can reduce costs, such as paring down a cell phone plan, cancelling cable, club memberships, subscriptions etc.,
2) Consider using public transportation whenever possible.
3) Consider eliminating some credit cards.
4) Examine the amount of money spent on entertainment/eating out every month. Check the library and Internet for free or inexpensive entertainment.
5) If expenses far exceed income, call creditors to set up repayment plans that work for both parties. Do not represent a payment plan to the creditor which cannot be kept.
For the twelve months following a divorce, it is important to be financially prudent and adjust lifestyles when necessary in order to transition into a solid financial future. Revisiting one's budget every three months and making adjustments as needed is recommended.
Tomorrow I'm going to write about what to do with your debt if you find yourself suddenly unemployed.
Until then,
Alan

Credit Principles Past and Present

Hi,
If we thoroughly examine the way credit practices were carried out in the past, we will find solutions to many of today's credit problems. Many people who find themselves in current credit trouble are people who would not have been extended credit under past guidelines. In the past, people used unsecured loans to obtain needed goods or services. Therefore, it was worth their time and energy to go through the credit process to qualify for the loans. Very seldom were personal loans issued for such things as a trip to the mall, or a night out on the town. Credit cards are now easily obtainable, and people are enticed to spend money. Consumers are encouraged to utilize credit cards whenever possible in lieu of cash. The ease in which consumers can use their credit cards causes overspending which results in financial hardship. Some ways we can integrate past credit principles into our financial management techniques of today are:
1) Have the mindset that credit cards are personal unsecured loans and not cash.
2) Use credit for big ticket items and services.
3) Have a repayment plan in mind when making a credit card purchase.
4) The strongest credit principle from the past was that, in general, people didn't spend money they didn't have, and credit was extended carefully to people who could demonstrate that they had the ability to repay the loan.
Tomorrow we will talk about other types of unsecured personal loans.
Until then,
Alan