I’m sure you will not need to know how much consumer debt is in the United States. Why? You may be one of the millions of Americans struggling to overcome huge credit card bills. If so, you will want to sign up for a debt relief program. These debt relief programs are very successful and highly recommended. Nevertheless, you will want to organize your finances yourself. How can you do it and what are the benefits?
To organize your debts, here are some points you want to focus on:
1 – Your income
Your income plays an important role in deleveraging. Of course, there are ways to release additional money each month (and we will focus on some of these ways later). That said, your debt may be too high to pay with what you earn now. A debt relief firm that manages settlements can solve this problem by eliminating part of its debt or generating additional income through a second job.
2 – Your required bills
Some of the bills you pay each month are necessary for survival. For example, you need a roof, you need your car to go to work, you need hot water, electricity and heating for your home. The list is very current. That said, these are not expenses that you can reduce; you must pay them no matter what. Make a list and add up their total.
3 – Your unnecessary bills
These are always monthly bills that you pay monthly, but they are not things that you technically need to survive. In this section, you must include your phone bill, Internet bill, cable bill, magazine subscriptions, movie rentals, and more.
4 – Your expenses
These are things you pay for, but not necessarily on a monthly basis. Before you consider all small purchases as a candy bar, make sure to focus on the necessary items. These include food for your family and gas for your car.
5 – Your credit card bills
All your credit card debts must appear separately because you want to get debt relief. You need to know exactly how much you owe and (if you still use your cards) how much you add each month to your total.
So, what are the benefits of keeping your personal finances organized? As noted above, you know roughly how much income you have to spend each month and where this money goes. By keeping this information organized and monitoring it closely, you will be alerted against the waste of money. Remember that you are looking for debt relief; you can not waste money. This money already has a home and goes to your creditors or your debt relief company. In short, keeping your personal finances organized helps you get out of debt faster because you are organized, well managed and make good financial decisions.