Analyzing Debt to Optimize Payments

When the creditors are ringing the phone off the wall you know it is time to repair your credit. The United States alone has over millions of individuals and families struggling to find a way out of debt. This is why when you go online you see thousands of web sites that say they have the solution for relieving debt. Don't be fooled!

Many of the telemarketers that claim they can get you out of debt can only bring forth more problems. There is no answer for all of us, but there is an answer for us all individually. Let's take a look at an example.

Ok, you make $210 each week per pay-check. Your debt is around $5000 and you can't seem to see a way out. Now let's say you have two vehicles both are paid in full, and a monthly rent that equals $400. We know that you only have $640 per month to purchase food, pay utilities, clothes, and other items needed to survive. We can't forget the phone bill.

This sounds like an impossible situation, but in reality there is an answer available. Now if you phone bill is around $90 per month and you spent around $50 per week on groceries and around $150 per month on utilities. Be time you are finished adding this up you will see that you don't have a dime left at the end of the month.

Therefore the solution is finding a job that pays more, searching for a low-income apartment that basis the rent on your income and using less utilities per month. In today's time you will spend $50 easily on groceries and not get enough to make it to the next week. Therefore is it possible you can eat foods that are less expensive and last longer? When you are poor you got to live like a poor person.

The sadness about people that are struggling they often envy or strive to purchase items they don't really need. Instead of paying the bills on time, they often pay a portion of the bill and purchase things that are not needed. If you have two cars and a single individual it is wise to sell one of the cars and apply the balance toward the bills. You can see from this deduction that more money is needed to survive.

Why are you paying $400 for rent when there are innumerable sources available that offer you rent for less? Now let's turn this around. What if you successfully rented a low-income apartment? Let's say that your amount is reduced to $200 per month.

This leaves you an extra $200 per month to pay utilities, purchase groceries, pay insurance on one car, pay your phone bill, and have a couple of bucks left over every month. This is one solution and it doesn't bring forth much, but it does bring forth a small reward.

Now if you can reduce your utilities to around $100 per month that is another $50 you could spend on bills. If your credit-history is delinquent, yet you are not swarming in quicksand you might be eligible for a credit-card. The solution is not to get the card to purchase items, rather it is to get a card that will help you make your monthly bills and allow you room to repay.

Make sure the card has low interest rates and there are no annual fees attached. If you can get by without a credit card all the better, but the fact is it is nearly impossible now to go without a credit-card. If you can get a job that pays more for your work then this is helpful too.

The downside is when people get better paying jobs that often take it for granted and land deeper in debt. The more money you make the more you will spend. It pays to be careful with your money and stay alert to your credit situation to keep a repair in place.

When creditors are calling it is time to repair your credit, so get ahead of the game before the phone rings.




 


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