Make a Budget

One of the first things that should do if you’re having financial problems is to create a budget. This is often the easiest and most overlooked debt advice available. Your debt problems are here to stay until you decide to make a change.

List all of your incomes and expenses on a monthly basis. The first thing that should be done is to create a list of creditors that you owe money to. This list should include the amount of money owed to each creditor, their name, address, account number and a copy of the original agreement. Once this information has been compiled you can start to create a realistic budget.

This can easily be kept track of using an excel spreadsheet, paper journal, or seeking professional help. When doing your income, also consider other ways of increasing your income. All of your income sources should be listed like so:

* Your salary or wage
* Your partner’s salary or wage
* Child support money you may receive
* Contributions from family
* Residual Income from Real Estate or other investments

Then create an expense column and list all of your expenses you may have. Below is an example (there could be more or less):

* Car Loan
* Mortgage
* Credit Cards
* Taxes
* Medical / Dental
* Childcare Services
* Mobile / House Phone

I think you get the point. There can be a lot of different kinds of incomes and expenses. By compiling both lists and comparing them you can determine where you may be able to save money by cutting expenses. This also puts your financial status into realistic terms. Things may not be as bad as they seem. Just stick to the budget and remain disciplined.