Tuesday, June 15, 2010

Self Help Debt Settlement - Steps to Help You Negotiate Your Own Debt (Part 4)

The debt settlement process begins!

How do I allocate my money?

How do you determine how to allocate your funds properly to the right sources on a month to month basis? Some expenses are monthly and others are yearly. These expenses will need to be calculated on how to save for on a monthly basis.

Living Expenses:

Living Expenses that are required on a monthly basis need to fit into your budget first. First, include your food expenses. Use your supermarket flyers, so that you can maximize your food budget. Secondly, include power and water. These can be somewhat fixed expenses, so it's a good idea to have them debited directly from your account. Fixed Monthly Expenses can also include your phone, internet, and television costs. Make sure each expense is on a package, so that the expense can be budgeted for as a fixed monthly expenditure. Other budget costs that need to be accounted for are gas costs, and any fixed medical costs. This will also include your rent or mortgage.

Living Expenses not due every month:

It's a very easy formula. Every expense that is paid on a yearly basis needs to be divided by twelve and put away to prepare. There are a few ways to do this; many companies will allow you to pay them monthly. You can also put the money away in a high-interest savings account, so that you will have enough funds when the time comes to pay. Expenses that are included in this are car insurance, property taxes, Christmas (a time not to over spend), some car expenses, and vacations (try a staycation instead).

Dealing with Your Debt:

After, you have allocated all your money to your appropriate living expenses. You will need to attack your debt. It is likely, that you are in a position that your debt has overwhelmed you and you cannot pay everything that is owed. In the future, you will want to make sure to keep your debt payments at no more than 30% of your monthly income. If you find that you can't make your debt payments, you will need to take the following steps.

How to I determine how much you can pay your creditors

Gather all of your monthly bills together and establish a monthly budget. Make a list of your necessary monthly expenses to include your mortgage or rent, car payments, utilities, Insurance, gasoline, food and other household bills. Take this amount and multiply that sum by 1.2; this will give you an additional 20 percent cushion for unexpected expenses or emergencies. The difference between your total household income and the previously calculated amount is your monthly settlement budget. Start setting this amount aside as your settlement fund, as this fund accumulates use this as your benchmark for amounts you offer your creditors.

Ian Stanton
Director of Marketing
B-EZ Enterprises
(480) 278-3717
email media@2settlemydebt.com
website http://www.2settlemydebt.com

Self Help Debt Settlement - Steps to Help You Negotiate Your Own Debt (Part 3)

Budgeting: Putting food on the table for less

You got to eat, right? But, how do you eat healthy and well for less? Food costs are rising all over the planet and families have seen their food budget increase and eat up more and more of their disposable item.

Here are some tips to keep your family healthy and well-fed without straining the budget:

Grocery Shop with a list

It's amazing how many people grocery shop without a list, and end up running up their grocery amounts to excessive amounts. Before visiting the grocery store, go through their weekly flyer and make a list of the on sale items and plan to incorporate those items into your meals. Generally, the items that you need are on the outskirts of the store, so if you don't have to go down a grocery aisle, don't.

Don't be afraid of the discount bin

Don't be afraid to buy items from the discount bin even if the cans are dinged up. Just because the packaging is hurt doesn't mean the food is. You can often get items for half-priced that are close to their due date. Consider these items as well, as they will just need to get eaten first.

Buy in Bulk...Most of the Time

Any items that are likely to be used on a regular basis in your house, consider buying them in bulk. These items include things like sugar, flour, meats, etc. A word of caution though is that it's not necessary to buy items in bulk that you won't be able to eat before they go bad.

Grow a Garden

If eating healthy is important to you, consider growing your own garden. This will be extremely inexpensive. Make sure though, before you go ahead with growing a garden that you are prepared to handle to work, as if you aren't diligent your garden won't produce anything and your money will be wasted.

Learn to love leftovers

Try to keep using food that is leftover in other meals. There are a lot of websites that can help you utilize what you have, rather than making a trip to the grocery store every day.

Eat before leaving the house

A lot of people end up splurging at restaurants simply, because they haven't taken the time to eat at home in the morning. Eat a good breakfast, and bring a snack with you to work, and you'll save your snack money.

Money is not about how much you make, but how much value you can create from your dollars. Make a plan right now to watch your money your spending on food, and you'll find you wallet isn't starving anymore.

If you have been reading the articles in the series, you should have a good idea by now how being conscious of your spending habits can increase your ability to allocate funds towards resolving your debt. In my next article I will lay out how to use this budget to start negotiating with your creditors.

Ian Stanton
Director of Marketing
B-EZ Enterprises
(480) 278-3717


eMail From Ester About US


Thank you very much for your timely and useful advice. I just cancelled our contract with a debt settlement company. In trying to find a solution to help us settle our business credit card debts, I almost got us deeper in debt if I went ahead and use a debt settlement company. This company would have charged us a 15% fee on total debt for using software meant for consumers with personal unsecured debts. That is $150.00 for every $1,000 amount due that would have been wasted and given us more future problems. If I were settling personal, unsecured debts, I would definitely use your software.

Indeed, it would give us more assurance to deal with a local attorney who would negotiate with the banks for us or even file a Chapter 11 for small business bankruptcy, than deal with debt settlement companies. The debt settlement fees asked could have paid for one or two of the credit cards.

We need more people like you who are finding solutions and helping financially distressed, hardworking Americans during our present economic downturns.

All the best,

Esther - Idaho


You may use my email message as reference. Again, thanks.

Thanks Ester,

I'm sorry I could not provide specific advice to help you in your current situation. As I advised you we are not a debt settlement company but a Self Help debt settlement website. We provide our customers the method and tools they need to negotiate directly with their creditors.

Ian Stanton
Director of Marketing
B-EZ Enterprises
(480) 278-3717