Debt Management Mistakes and Recovery

Posted: February 3, 2014 in Budgets, Financial Organization
Tags: , , , , , , ,

Part III of my “A Little Something Different” includes some items that hit close to home for me – one being the 5 biggest mistakes we all make in terms of debt management and the second being the 10 steps to financial recovery.

While daunting in my book, financial management – be it debt – or recovery – can be either simple or highly complex depending on which way you look at it.

money-mistakes

Last Week I read an article called 5 Debt Management Mistakes you Probably Make on MSN Money, you can find a copy of the article here:

In Summary, the Five Steps are such

  1. Depleting Your Emergency Fund
  2. Having No Plan of Action
  3. Getting Caught in the Minimum Payment Trap
  4. Robbing Peter to pay Paul
  5. Ignoring Statements and Credit Reports

Burning Benjamins

I can honestly say we do all of the above on a regular basis – I am always robbing peter (aka the utilities funds) to pay Paul (aka the car and mortgage payments) or vice versa depending on where we’re at financially that week.  None of which are very smart and all of which cause us to continue on the cycle we’ve been on, so how do we fix it – balance is one way, the other is listed in this article I read just this morning, Your 10-Step Financial Recovery Plan a copy can be found here:

Those 10 Steps are Such:

  1. Identify Your Big Goals
  2. Do Some Introspection
  3. Keep Tabs on Your Credit Score
  4. Boost Your Credit Score Slowly
  5. Skip Potentially Fraudulent Services
  6. Get Help
  7. Schedule a Weekly Check-Up
  8. Create a ‘Look Book’ for Yourself
  9. Give Yourself an Allowance
  10. Stay on Track

WOW! Who knew it could be so very simple – one of our biggest goals right now is just Financial Stability – the ability to pay all of our monthly bills; Mortgage, Car Payment, Day Care, Utilities, Groceries, Gas, etc. and have money left over for both retirement and emergency funds savings and then maybe just maybe save for a vacation – all easily met for a lot of people, but like a lot of others we struggle week in and week out…as I’ve outlined in this blog.

So here’s the first part of my ‘Look Book’ which I’ll create a new post for:

scale with usa currency

 

I hope this post helps some of you!

Images borrowed from:

http://moneynewsnow.com
http://www.money.usanews.com
http://www.landaas.com
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