5 Tips for Resolving an Unbalanced Budget. 5 Things Not to Do!

If you are experiencing difficulties with your monthly budget, be proactive in seeking resolutions before the situation worsens.  Sometimes there are unexpected circumstances that cause a budget to fall out of balance.  If these circumstances are short term (i.e. temporary lay off or short term medical issue), it is easier to employ basic tactics to bring your budget back into alignment.  If the conditions persist, finding debt solutions can be more challenging.  Remember, the longer you delay the more overwhelming the situation will likely become. Our firm specializes in debt resolution through budget reorganization and consolidation, debt elimination or debt settlement.  Our programs are designed to bring long term financial stability and an improved credit rating.  Call us today at 866-261-8282 for a free consultation with a licensed attorney to understand your options and bring balance to your budget.  

5 Tips for Balancing Your Budget:

1. If you had an influx of unexpected bills (i.e. your vehicle breaks down and needs to be replaced or fixed), consider seeking temporary supplemental income such as a second job.  Use the additional income to pay down the debt.  Consider keeping the flow of additional income so you can build up a couple months of cash reserves in order to deal with unexpected costs in the future.
2. If you have a small (manageable) number of total creditors, consider contacting them individually to reduce your interest rate or possibly offer a lump sum payment to settle the debt for less than what you owe.
3. Carefully monitor your budget and look for areas of savings.  Spend a month carefully tracking all of your expenses and cash outlays.  Write down everything in a journal½including small things such as your morning coffee stop.  Evaluate areas of savings.  You will likely be surprised at some of the small ways you can save money.   Consider cutting back on non-essential spends.
   1. Example:  make coffee at home and perhaps just treat yourself to a store bought cup once a week.
   2. Cut up high interest rate credit cards and/or call the creditor to negotiate a lower interest rate.
4. Look at your reoccurring monthly bills for ways to cut money out of your budget.  Examples:
   1. Reduce your cable to the basic package until you have paid down outstanding debt and brought your budget into balance.
   2. Call your cell phone provider to see if there are any specials or discounts you can take advantage of or a smaller package you could step down into.
   3. Install a programmable thermometer to regulate your utilities and program the thermostat for reduced usage at night and/or while you are gone during the day.
5. If your debt is beyond your control - acknowledge it and get help from a reputable agency.  Acclaim Legal Services offers debt resolution through bankruptcy (Chapter 13 debt consolidation or Chapter 7 debt elimination) as well as non-bankruptcy debt settlement. We offer free phone or in-office consultation to help you evaluate the best course of action.

5 Things NOT to do:

1. Dip into a qualified retirement savings account to balance your budget.  This is a short term solution and robs you of future security.  Also, there are substantial tax penalties for cashing in retirement monies early.
2. Incur new debt (i.e. borrowing money from a family member) to pay off old debt.  This is just a shell game and doesn't get to the root of the problem - too much debt.
3. Take risky measure or "get rich quick" schemes, such as gambling, to resolve your debts.  Most likely you will end up in a worse position than when you started.
4. Get behind on primary bills, such as your mortgage or vehicle, in order to satisfy harassing creditors calls.  Unsecured debt should be paid after you take care of your secured debts (i.e home and vehicle).
5. Ignore the problem.  Doing nothing will like make your situation worse.  You need to be proactive to claim a solid financial future.

  We are available to discuss your debt resolution options; call today at 866-261-8282.  Delaying simply creates more stress on your budget and in your life.