Christian Debt Counseling services offer more than lower interest rates and a single monthly payment versus multiple bills at variously higher interest rates. While this in and of itself is an extremely valuable service, what’s just as beneficial in the bigger picture is learning the skills of money management and budgeting. Teaching these money skills is something the majority of Christian Debt relief agencies consider part of the necessary ingredients of a responsible financial Christian household, and therefore offer these services as part of the value of using their company.
In this article, we will look at some common sense financial and budgeting tips and philoshies. This is not meant to replace consultation with a financial professional. Rather, these tips are meant to supplement such advice and give the reader an idea of the type of thinking they might need to grasp in order to move to a more responsible financial position in their lives.
Let’s dive in and get started.
Face the Reality of Your Financial Situation. Nothing changes without an honest assessment and acceptance of the truth of where things stands now. Be honest with yourself and your financial situation. This does not mean indulging in shame or feeling bad about what’s happened – it means accepting responsibility for where you are now. This acceptance is the first step in getting your finances under control.
Stop Adding Any New Debt To your Credit Cards. If you’re dealing with high levels of debt caused by those shiny plastic cards, it’s time to get rid of your credit cards. If you have the discipline to keep one on hand for emergencies, do so. If there’s any doubt that you cannot control your spending if you know there’s a single credit card in your wallet or purse, then don’t keep it there. Instead, place it in a safe place in the home, to be used for emergencies only, much like you would a first aid kit or other item used in emergencies.
Reduce Your Standard of Living. The high level of debt carried on a credit card means that you’ve been living at a standard of living that’s higher than your income can afford. It’s time to look at cutting costs and reducing the total monthly bills you’re accustomed to creating for yourself. Some suggestions include buying a cheaper cell phone plan, getting a cheaper cable TV package, or getting rid of the house phone if you have a cell phone. Conversely, you could also get rid of cable TV entirely, get rid of all the cell phones in the house, and just get a cheap house phone in stead. There are many other ways you could look at reducing your monthly costs, such as the amount of money spent going out to eat each month.
Keep Track Of You Expenses and Earnings. Where is all your money going? How much money do you have to work with each month? Chances are, unless you’ve been literally tracking these things on paper (or on a computer), you have only a ball park estimate of the answer for these questions. If you’re in over your head in debt, it’s time to do the dirty work and start keeping track of all your money. This means logging all expenses and also tracking all incoming money. This type of tracking can will become very revealing in where the money actually goes. It’s likely there are a few areas where your money is falling through a hole without you noticing. This often is very simple things like money spent on coffee, sodas, vending machines, alcohol, going out to eat, or buying books, CD’s, and DVD’s. Once this patterns are revealed from a few months worth of data, one is able to make far more informed spending choices that truly can match their standard of living with their financial situation.
These 4 tips alone are not an answer to an overwhelming amount of debt. But they are a helping hand on the path. Working with a Christian Debt Management service often leads to performing such activities as described above in an effort to attack all levels of your financial life with a plan that will you give you confidence to move forward and eventually get you debt free.
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Thanks for comment Edward! I’m glad you enjoyed what you read here at my blog.