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Managing Your Finances
Budgets are a very important part of our lives, and today, with the amount of financial aid a student must receive to get through school, a budget should be one of your top priorities.
Mortgages, car payments and having a family are all a part of life that we realize will be part of our budgets. School loan payments may also be a large part of the monthly budget.
Let's review what can happen when you do not have a budget or not using your budget:
- Acquire a bad credit record
- Be unable to obtain future credit when needed
- Pay late fees and/or be denied a deferment if the forms are not returned on time
- Pay interest on credit cards if they are not paid in full each month
- Have a law suit filed if you default on a loan
- Possibly have wages garnished
- Have your income tax refund withheld
- Have perpetual financial problems
- Possible end up in bankruptcy court
We can now take a look at a way to work with a budget, and even improve your credit, if it has been damaged.
- Make a budget that you can live with; don't forget to include savings and entertainment.
- Pay accounts when due, or earlier if possible, to save interest
- Use credit cards sparingly and pay off the balance each month. The interest and late fees you save can possibly be enough for entertainment.
- Contact your lender, if your payment is past due, to work out a new repayment schedule or a forbearance.
- If you have a heavy debt load, you might need to contact a consumer counseling group. They will establish a budget and work with your lenders to reschedule your payments.
These groups can be found in almost every state. They can contact your lenders to work out a repayment plan that is mutually acceptable, but you may need to make some personal adjustments to accommodate the agreement. If you have more debt than you can manage, this might be a way to help you get started in the right direction. The sooner you seek this help the better!
To locate a consumer counseling group in your area, call:
Consolidated Credit Counseling Services, Inc.
1-800-320-9929
Spring Board Credit Consumer Management
1-877-947-3752
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