Debt Consolidation & Debt Counseling is not for everyone, however if one of the following meets your needs then you should certainly consider:

• You can't pay the minimums on your credit cards.
• You're consistently late paying one or more of your regular bills.
• You're being hounded by creditors and collection agencies.
• You're interest rates are eating up your entire payment.
• You would find it impossible to pay for basic living expenses if you lost your job.

It all starts with a BUDGET, and being able to understand where your money is going.

Here's How:

• Start with a budget worksheet.
• Go through your check book or bills for the last two to three months and add and delete categories from the worksheet to fit your expenditures.
  Think about your hobbies and your habits and be sure to add categories for these expenses.
• Go through your pay stubs and calculate your average monthly gross pay.
  Do the same for any interest income, dividends, bonuses, or other miscellaneous income.
• For each expense category, try to determine a budget amount that realistically reflects your actual expenses while setting targeted spending levels that will enable you to save money.
• Once you're comfortable with your expense categories and budgeted amounts, enter expenditures from your checkbook from the last month.
• Keep track of cash expenditures throughout the month and total and categorize these at the end of each month.
• Subtotal the income and expense categories.
• Subtract the total expenses from the total income to arrive at your net income.
• If the number is negative, your expenses are greater than your income. Your situation can probably be greatly improved by changing your spending habits.
• If you have a positive net income, transfer most of it to a savings or investment account at the end of each month. Extra cash left in a regular checking account has a way of getting spent.
• After you've tracked your actual spending for a month or two, analyze your spending to identify where you can comfortably make cuts.

Once you've got the budgeting process in place, take an in-depth look at your largest spending categories, brainstorm about ways to reduce spending in specific categories, and set realistic goals Update your budget and expenses monthly.

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Tips:
Don't try to fit your expenses into somebody else's budget categories. Tailor the categories to fit your own situation. Make your categories detailed enough to provide useful information, but not so detailed that you become bogged down in trivial details. Think of your budget as a tool to help you get out of debt and save money, not as a financial diet. The following link will direct you to a PDF budget sheet which you should present to your counselor during your first intake session.

Financial Counselors of America has over 17 years of experience, counseling individuals to becoming financially independent and DEBT FREE! FCA takes the time to evaluate your spending habits and determine your financial health. If you do have problems, taking the first step to get help will prevent them from getting worse. If you are unsure as if you need help take the DEBT TEST.

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