There Is More than One Answer to Budget Problems

There Is More than One Answer to Budget Problems

Too few Americans realize the importance of a budget. They appear to be spending everything they earn each month without understanding that they should be saving for the future as well as enjoying life in the present. The indications are that many are enjoying themselves now but not paying too much attention to tomorrow. That budget is becoming increasingly critical for many in today’s adult population.

Card Debt

One indicator of the state of consumer finance in the USA is that credit card debt is expected to pass $1 trillion before the new President takes office. Average debt per household is bad enough but when you look closer and only consider the card holders who regularly pay interest on balances every month the figure exceeds $15,000. It is unsustainable. Even if a user stopped using their card immediately and paid the minimum required each month it would take well over 20 years to clear the debt. It does not bear thinking about the amount of interest he or she will have paid. So much for the bargain you thought you bought on your credit card!

A recent poll by the National Foundation for Credit Counselling (NFCC) reports that when consumers were asked which of their debts concerned them most credit card debt earned 70%. At least it seems that families do understand the problem.

Credit Score

The best deals go to those with a good credit score. One of the things that is considered to calculate a credit score is the ratio of debt against available credit. Those reaching their credit limits on their cards will be marked down. It is possible to improve your credit score as old data becomes less important and prompt current payments are entered in your history. It is important that everyone knows their current score and that means regularly asking for the agency reports that you are entitled to and disputing anything that you think is inaccurate. Likewise if you think some positive entries are missing, shout up!

You can ask for an increase in your card credit limit. That will slightly improve your debt/credit availability ratio but then you are more likely to ask for an increase because you want to spend more.

Online Lenders Can Help

However personal loans are available to those with a poor credit score as long as they have a regular income and can justify the amount they are seeking. That means lenders want to see that the repayments are affordable. The new breed of online lenders playing an ever increasing role in the financial sector are there to help. The interest rate applied will be much lower than that charged by card companies so you can immediately take some positive action to tackle debt by taking this one action. You should look at other possible savings in your monthly expenditure with comparative websites a good starting point to see if you are paying too much for your telephone, insurance and utilities.
The expenditure side of your budget is only half the equation. What can you do about the income side because if you can raise that at the same time you may have a real chance to save?

Ways to Improve your Income

Wage growth is lagging behind as the economy improves. Whether you can get a pay raise or change jobs to have more money each month you can look at other income sources.

Some people may decide to take a part time job but commuters will have little time to devote to extra work involving going out again to work in the evening. The answer may be to use the opportunities that the Internet present. While you do not want to be up all night the Internet is 24/7 and if you find a niche it is likely that you can work in hours that suit you.

If you are a good writer and your area of expertise is something that you are able to pass on to a wider audience then you can earn money without compromising your permanent employment. There is always someone willing to listen and read. You may enjoy marketing and therefore can explore whether you can start to trade online. Even if you do not have any personal things to sell you may be able to find an area where you can buy and sell. Not only can it earn you more money it is fun.

Why not investigate other internet opportunities as well? Your budget may begin to look healthy.

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