www.srimehta.com | Your Financial Solutions

In our changing world dizzy, nothing is more true than the time honored statement that circumstances always change. Nowhere is this more true than with financial issues. Have you ever borrowed money, or charged up the VISA card at Christmas, while telling you that you would pay for any tax refunds or bonuses to come?

Sound familiar. And then what happens when the bonus money arrives?

Let me guess …. Changing circumstances, the car needed brakes (or the kids needed braces, etc.), and loads of debt and interest keeps accumulating VISA.

Unless you have a plan, you will always be caught in the unpredictable grip of “changing circumstances.”

It is a slippery slope that can very quickly become serious financial difficulties. Consider the fact that Americans are declaring bankruptcy at a record rate. One in every 100 families are affected by a bankruptcy.

I was on the hill 10 years ago. Declaring personal bankruptcy and filing for divorce went hand in hand.

One of the most insightful of the process was preparing a paper written for the trustee of all of our expenses for the 5 years preceding the bankruptcy.

Although all the individual decisions of meaning in moments they were made, they looked totally foolish in the context of the picture “great”

In other words, constantly changing circumstances drove us off our financial roadmap.

Consider this five step plan to get on and stay with your financial roadmap.

Step No. 1: Make a list of what you owe and prioritize: Put all your bills in a pile. Then list your debts in order, starting with the largest balance first. Then prioritize your repayments (ie repayment of the highest interest rate first).

Step No. 2: Eliminate credit cards and do not roll over balances. Once paid, notify the company you want to close the account.

Step No. 3: Make a spending plan. Change your spending habits free. Follow the money is coming in and out. Use a debit card instead of your credit card. Download your bank transactions into a computer program to facilitate the categorization.

Step 4: Pay attention to the equity in your home. Billions of dollars of stock was withdrawn millions of homes in recent years. But many people to repay credit cards only to load them again – and then you do not have the safety net of the equity in your home.

Step No. 5: Get help. For some people, the problem of overspending is a psychological one. Spending can become a habit that is difficult to kick as alcohol, drugs and gambling. Sometimes it is because of circumstances they could not really avoid: medical bills or divorce or job loss.

You can talk to a credit counselor on a private basis. It seems that your credit report if you enter their program of debt repayment.

During this holiday season, as you consider your finances, remember that Americans are now 683 million dollars of debt revolving credit card. 47% of people who paid less than the full amount of their bills by credit card in one month recently, made only the minimum payment due.

The good news is that planning and professional help you will certainly change things.

Typical example: I went bankrupt with zero assets living in a boarding house, to gainfully employed, running my own business at home, with 2 houses and excellent re-established credit.

In other words, it can be done.