Five Secrets of Debt Management

These days, many people are encountering difficulties in the area of finances--particularly as the price of gas and food continues to climb. For many who are struggling in debt, it seems to be an overwhelming task to know where to begin to put the situation right. Organizing your finance is one key. Here are 5 steps to debt management which might assist in the journey. Stop digging deeper into debt. Take control now.

1. Stop using your credit cards. Cut them into pieces and cancel the accounts. If you don't, the hole will only get deeper.

2. Sit down with a pencil and paper and figure out how much you have coming in versus how much you have going out. If income is more that out-go, you have a chance to get things right yourself. If income is less than out-go, you need to seek help from a qualified financial planner or debt consultant...NOW.

3. Cut your monthly expenses for the necessities. Eat in rather than out. Turn off lights when you leave a room. Raise or lower the thermostat so that less energy is used for heating and cooling.

4. Start saving money. All this requires is a trip by the payroll department where you work. Even if you start by having only a few dollars taken out of each paycheck and saved for you, it will be a beginning that you can build on. Think of saving as paying yourself first.

5. Avoid all impulse buying. When you go to the grocery store, take a list, and stick to what is on the list. Don't look left or right at the checkout stand. Use cash to pay for groceries rather than a check.

For more information on counseling and EAP services which can aid a family in these tough times, contact LifePlan.