Bad Credit Budgeting

Bad Credit Doesn't Stop You From Having Money

If you've made mistakes in the past and you have hundreds, thousands, or even more dollars in debt, there a strategies you can employ to get yourself back on your feet and in the green for you bank account.  Many people struggle with debt because they don't know what they need to do to get out of debt.Through the best debt management programs, self-discipline, and optimism to the future, not only will you become debt free, but you will start having real money in your bank account for those things you really want.

In case you were wondering, there is no magic wand for getting rid of debt.  Anyone that tells you that they can get rid of your debt without any hard work and dedication from your part is selling you a scam.  And I'm sure you don't want to be scammed out of your hard earned money.  If you have bad credit and loads of debt, the only true way to get out of it successfully is to be willing to budget yourself and if you have a lot of luxuries, sacrifce them to save money.

Man burdened with debt.
Man burdened with debt.

Debt Consolidation

Look at your monthly income and look at how much you have to pay per month to get rid of your debt.  If more than 30% of your income is going towards paying the minimum payments of any loans, credit cards, or other debts you have, you should talk to someone about have your bills and debt consolidated.

How debt consolidation works is a representative negotiates with the various companies that you owe money with to try to negotiate lower interest rates or to make the money you owe them smaller.  After that, they throw all those loans, credit card payments, etc., into a figurative funnel and turn all those small bills into one loan that you have to worry about.  So, instead of having to pay 10 different bills to 10 different companies that you owe, you just have one loan to worry about.  The nice thing about debt consolidation is any fees, penalties, or raised interest rates are reduced and eliminated.  Just imagine how easy it would be just to worry about paying one bill.

The trick with finding the best company to work with for debt consolidation is to look around online.  Comparison shop the companies you see advertised and look at fine print in their services.  Find a company with reasonable interest rates, friendly service, and good reviews from people who have used them in the past.  Debt consolidation is truly great if you are a person with poor credit history and want to get out of debt.

Budgeting Your Money Right

Budgeting your money is fairly simple and can start saving you hundreds or thousands of dollars every year.  First, grab a piece of paper and write down all the things you HAVE to pay for each month.  This would be your mortgage/rent, car payments, credit cards, etc., and then add them all out and write that number down.  Now, figure out how much money you make each month.  Subtract your mandatory expenses from your monthly income.  The remainer money is what you have to use to pay for food, clothes, going to the movies, and anything else you want to do each month.

The next thing you want to do if you want to save money and budget right, is set aside money each month to go straight to your savings account.  This money should be about 10% to 15% of your remaining monthly income.  Next, think about how much food you consume.  Set aside money for food.  Look at other necessities like toiletries, gas for your car, or clothes, and think about how much you need/consume.  Set aside a portion of money for those things.  The remaining money now is what you have to use for fun/savings.

If you're planning on being serious about getting rid of your bad credit and debt, you need to be willing to sacrifice those things you like to do for fun.  Its imperative that you get rid of your debt first and have fun second.  While I'm not saying you shouldn't have fun at all, you should just be more frugal about what you do for fun.  Instead of spending $100 on sushi on a night out, instead spend $15 at the movies.

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