Financial Organization, Planning, Budgeting
Financially Strapped? Here Are Some Ways Out
In a recent National Foundation for Credit Counseling survey, more than 60% of respondents say they have to watch every dollar they spend. If you are struggling to meet your expenses each month and see no way to recover, major lifestyle changes may be in order. Here are some significant changes that might be necessary to help you get back on your feet:
- If you rent, check nearby rates. In many parts of the country, apartment rental rates have dropped due to the economic downturn. You may be able to pay significantly less for a comparable space.
- If you own a home, you may need to sell. This is especially true if you are in danger of losing the home. Place any profits into savings or use them to pay down debt.
- Pay down credit cards using investments or savings. If your investments only generate a 5% return, for example, paying off a credit card with an 18% rate is a better investment.
- Consider a debt consolidation loan. If you can consolidate debts and pay a lower overall interest rate, you can pay off the principal balance more quickly.