Getting Out of Trouble

I found this information on practicalmoneyskills.com. It’s a great website for increasing financial understanding and options. I would highly recommend exploring the site; even if you feel that you are the best money manager in the world.

Reasons why consumers can’t pay

  •  loss of income (48%)
  • Unemployment (24%)
  •  Illness (16%)
  •  Other (divorce, death) (8%)
    overextension (25%)
  • Poor money management, Emergencies, Materialism, Need for instant gratification
    defective goods and services (20%)
  • fraudulent use of credit (4%)
  • other (3%)

Signs you are in Trouble

  • You don’t know how much you owe.
  • You often pay bills late.
  •  You get a new loan to pay old loans.
  •  You pay only the minimum balance due each month.
  • You spend more than 20% of your net income (after paying rent or mortgage) on
    debt maintenance.
  • You would have an immediate financial problem if you lost your job.
  •  You’re spending more than you earn, using your savings to pay for day-to-day expenses.

 First steps to take if you can’t pay your bills

  •  Take another (close) look at your budget and cut your expenses.
  •  Be realistic about what you can afford (the hardest) and
    contact your creditors
  • Tell them why you can’t pay, that you intend to pay, and when/how much you will be
    able to pay.
  • You may be able to work out a new payment schedule.

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