Talking about your Debt – Tip 3
Dealing with Debt (Part 3)
Often couples (or families) who are going through tough times financially like to ignore their debt problems and act as if nothing is wrong. Sadly this only adds to the stress of dealing with your debt. Rather it is much better to talk about your debt and steps you are taking to deal with it in a calm manner.
Tip 3
Budgeting
Rather than have a vague idea of what your costs are try to put them down on paper. If you are unsure how to do this ask a friend or consult a professional. If you visit a Debt Counsellor they will help you to work out a realistic and sustainable monthly budget.
It is important that you try to stick to your budget. It is a good idea to track your spending and see if you are matching what you planned.
One way to do this is called the envelope method. Place the various amounts you have set aside for different expenses in different envelopes. When the envelope runs dry you will know you have hit your limit for that particular item.
Others run an excel spreadsheet and record their spending for bigger items such as rent, school fees and transport and then roughly track their spending on other smaller items as the month goes by. Maybe a small notebook in which you can write each day might be the best option for you. The important thing is to see if you are sticking to your budget.
All in the family should have a good idea of what the goals are for items such as entertainment, haircuts or clothing etc. Knowing these goals will help the family to work together and to be able to communicate about dealing with debt problems. Work together to fight your debt issues and get debt free.
