Welcome, visitor! [ Register | Login

Post an Ad

How to Prioritize Your Expenses

Financial recovery December 16, 2020

Prioritize Your Expenses

When struggling to meet your monthly expenses, how might you prioritize your expenses? Can you think of any reason why you should pay some bills before others?

Basic Necessities
Your basic human necessities (mortgage/rent, food, utilities, and transportation) should always come before paying other expenses or creditors.

What should you do if you fear you cannot make your mortgage payment?
•    If you cannot make a mortgage payment, or fear you are at risk of foreclosing on your home, contact your lender immediately to explain your situation and negotiate a payment plan until you can resume regular payments.
•    You may also want to contact the United States (U.S.) Department of Housing and Urban Development (HUD) at www.hud.gov, or 1-800-569-4287 to locate a HUD-approved housing counselor near you.

What should you do if you fear you cannot make your car payment?
•    If you are having difficulties paying your car loan and foresee that you are getting close to defaulting on your loan, consider selling the car yourself to pay off the loan to avoid the repossession expenses (e.g., towing and storage costs) and the negative impact on your credit report.

High-Priority Expenses
If you have other high-priority expenses you would pay these after paying your basic necessities. High-priority expenses may include:
•    Insurance premiums to ensure you have adequate coverage on your home, home contents, car, health, and life
o    You may be tempted to cut or eliminate these premiums, but think twice before you do. Having adequate insurance may help you and your family avoid further financial setbacks should something unexpected happen.
•    Medicines, medical bills and health, vision, and dental expenses
•    Other expenses that you deem important and a high priority

Remaining Expenses
Prioritize any remaining expenses based on the money you have left each month. If you are unable to meet all of your expenses after determining ways to increase your income and decrease your expenses, contact your creditors and explain your situation. We will talk about contacting your creditors later in the module.

Think about the way you have been prioritizing your spending or paying expenses up to this point. Have you followed this recommendation? Do you need to reprioritize your expenses? As you are evaluating your current financial situation, you can use the My Spending Priorities table on page 13 of your Participant Guide to revise your spending priorities and identify ways you can decrease your expenses.

 

No Tags

292 total views, 1 today

  

  • Debt Collectors -Recovery Services - PA & VA

    by on February 24, 2021 - 0 Comments

    Entity Address Telephone Monarch Recovery Management, Inc. 10965 Decatur Road, Philadelphia, PA, 19154 (215) 281-7500 Monarch Recovery Management, Inc. 9350 Ashton Road, Suite 101, Philadelphia, PA, 19114 (215) 281-7500 Central Credit Services, Inc. Five Neshaminy Interplex, Suite 117, Trevose, PA, 19053 (215) 333-2272 Tate & Kirlin Associates, Inc. 2810 Southampton Road, Philadelphia, PA, 19154 (215) […]

  • Credit Counseling Agencies :EASTERN DISTRICT OF NORTH CAROLINA

    by on February 1, 2021 - 0 Comments

    Alliance Credit Counseling, Inc. 13777 Ballantyne Corporate Place, Ste.100 Charlotte, NC  28277-3433 Phone:  888-594-9596 Fax: 704-943-0313 Email:  kevin@knowdebt.org Website:  www.acc.consumerbkcenter.com, www.crisishelp.org, www.knowdebt.org Debt Management/Credit Counseling All Names Used: Alliance Credit Counseling, Inc., AAAlliance Credit Counseling, Inc., AAA Alliance Credit Counseling, Inc.  Addresses: 15720 John J. Delaney Dr., Ste.100, Charlotte, N.C. 28277, 7621 Little Avenue, #100, […]

  • How to calculate Monthly Income and Expenses - Case study

    by on January 25, 2021 - 0 Comments

    Monthly Income and Expenses   Once you know your monthly expenses, you can use a Monthly Income and Expense Worksheet (similar to the one on page 8 of your Participant Guide), a money management software program, or an online budgeting worksheet to determine: How much money you have coming in (income) How much is going […]

  • 5 Tips for Getting the Most From Your Credit Card

    by on March 9, 2021 - 0 Comments

    Pay on time. Paying your credit card account on time helps you avoid late fees as well as penalty interest rates applied to your account, and helps you maintain a good credit record. A good credit record leads to a higher credit score, which helps you qualify for lower interest rates. Know the date your […]

  • Seeing Through Stimulus Scams

    by on January 22, 2021 - 0 Comments

    Seeing Through Stimulus Scams With talk of stimulus plans ruling the news, it’s no surprise a new round of stimulus scams are afoot. Here’s how it goes: An email, online ad, or website says you’re eligible to get an economic stimulus payment. You just have to send back a form or submit one online to […]