Quick and Easy Budgets: How To Take Control Of Your Finances

If the thought of making a budget horrifies you, then the chances are pretty
good that you are in need of setting one up. Usually, anyone who cringes as
the thought of a budget is a person who needs help with his or her finances.
What you may not know is just how helpful a budget can be, not only to help
you put away funds for now, but to also help you build your financial future
for the long haul. Besides, you may not realize it, but it could be much
easier than you think to make a budget for yourself that works so well that
you will really enjoy following it.

To get yourself started and on the right road for a budget, you should put
together all of your income information. A good idea is to grab three months
of your pay stubs and so on so that you can figure out a pretty good idea or
a rough estimate of what the average monthly income is for your household.
If you usually work overtime, you may want to leave this amount out of your
calculations, as overtime may not always be readily available and cannot
help you if you are not working it.

Next up, you are going to want to gather up all of your bills from the past
three months as well. Obviously, you should add up all of the amounts that
you owe each month from all of your bills. Then, you can take this total and
divide it by three to see how much you are paying for loans, rent, etc.
every single month.

After that is figured out, you can take and add together all of the amounts
that you have for miscellaneous monthly expenses such as clothes, food, gas
and so on. Then, you go through and divide this total by three just like you
did with your monthly bills. When you add this monthly total to the other
one, this should give you a good idea of where your money is going every
single month.

>From here, you can go through and look at everything that
you are paying out. This is a good time to see if there are any places where
you can cut some corners and maybe save yourself some money in the long run.
Whatever you find yourself cutting out, you can set it aside in a separate
bank account than the one that you use to pay all of your bills and so on.
You would be amazed at just how fast your extra money can build up over
time. Then, you will be able to take some of it out every couple of months
or so and pay off some extra bills. Or, you could even keep the money in the
account and keep it toward a down payment for a new home or maybe even a new
car.

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Liz Roberts is a loan consultant with NHBSInc. They specialize in providing
sub prime financing. Click here for a list of credit cards for people with
bad credit or seeking to rebuild their credit
http://www.newhorizon.org/Info/creditbuilders.htm

Comparing The Home Depot Credit Card

The Home Depot credit card, like all store branded credit cards, offers
consumers some very enticing benefits. For example, the Home Depot card
often advertises specials such as a 0% interest rate and no payments for 6
months. However, there are a number of factors to consider when applying
for a credit card. Perhaps the most important factor is the interest rate.
And the Home Depot credit card scores quite poorly here.

If you a take a look at the online application for the Home Depot credit
card, you may have a hard time finding the interest rate. And, when the card
is presented to you at the store, cashiers generally don't attempt to
influence your decision by mentioning this essential credit card element.
However, the truth of the matter is quite disturbing. Like most other store
credit cards, the Home Depot credit card charges an interest rate that is
forty to over one hundred percent higher than standard credit cards! And
that's for consumers with good credit.

Credit cards issued by most major credit companies presently offer two
things the Home Depot card does not: low long term interest rates and 0%
interest on purchases and balance transfers for 1 year. For a large purchase
that will be paid off over a period of time, the best credit card is a new
credit card that offers 0% interest on purchases for 1 year. Why? Let's buy
new carpeting for $2000 and figure out the difference.

Many credit cards offer interest rates around 11% and 0% introductory rates
for up to 1 year. Using such a card would cost us 0% in interest on our
$2000 purchase during the first year, and, assuming we've paid off $100 per
month, total interest charges would total about $65. Total cost of the new
rugs: around $2065.

The same purchase using a Home Depot card with an average interest rate of
22% and the same payment schedule would cost us $143 during the first year
and close to $100 the second year. In other words, about $200 more. This
assumes that we do not take advantage of the no payments for six months.
Factor that in and we pay an additional $150, bringing our total interest
cost to $350. That means our $2000 rugs actually cost $2350!

In this author's estimation, the most important element of a credit card is
the interest rate. After all, if purchases are not paid off in full each
month, the items we buy end up costing a lot more than they did at checkout.
The best credit card for new purchases, especially large ones, should be the
one with the lowest interest rate and the best 0% introductory rate. The
same holds true if you are stuck with a balance on a high interest store
credit card. Simply transfer the balance to a 0% APR balance transfer credit
card with a lower interest rate. The savings add up. Quickly!

About The Author: To learn more about low interest and 0% credit cards and
apply online for a new credit card, visit the author's website,
http://smartcreditchoices.com/showcategories.php?showcat=inst_appr

5 Easy Steps To Do It Yourself Debt Consolidation

The whole idea of consolidating your debt is to roll all of the money that
you owe into one single secured loan. Instead of paying a large number of
debts off to debtors, each with separate rates of interest, which push your
debt up higher and higher by the month, you will be left with one manageable
payment.

A word of warning though, debt consolidation loans will need to be secured
with a substantial amount of collateral, like your house or your car. If you
don't pay the payments on a secured loan then the lender, or financial
institution can, and will take your secured assets as payment for what you
owe them.
Getting Started With Your Debt Consolidation

Step One: The first step that should be taken before you even consider
arranging a consolidation loan is to work out how much you owe, and whom you
owe it to. By working out your debts, you can come to a balance that you
will be working on paying off in the following months of your life. Be
honest with yourself don't leave any debts out.
Put Away The Credit Cards!

Step 2: No more credit! Put away your credit cards, in fact cut them up so
that you can't use them. If you are really serious about consolidating your
debt and getting it paid off you have to make a commitment to yourself that
you will not do anything else to incur more debt on yourself. Period.
Time To Go Visit A Few Banks

Step 3: Go and visit the bank. Now that you have sorted out how much you
owe, and whom you owe it to, and understand that there will be risks
involved in taking out a consolidation loan, you need to go and visit a few
financial institutions.

Never take the first offer given to you, especially with debt consolidation
loans. Don't apply for too many loans, while you are looking. This may show
up in your credit report and cause even more damage. A good idea is to order
your credit report from one of the three major credit reporting companies
and take it along to show the loan officer.

Interest rates are likely to be higher than an ordinary loan.
This is especially likely if you have done damage to your credit report from
not paying your debts, or you don't have a great deal of collateral to bring
to the table. If you are teetering on the brink of bankruptcy, expect to pay
more in interest rates and charges for a debt consolidation loan, because
you are a high risk to the lender.

With that said, shop around some financial institutions will offer you a
better deal than others, and when you are so far in debt the difference
between 12% or 18% will make all the difference.
How Much Can You really Afford?

Step 4: Work out what you can afford to pay, and how long you want to take
the loan out for. This is where budgeting is vital, work out what you can
afford to pay, and be realistic.
If you end up with repayments that are too high, you may be tempted to live
off of your credit cards for personal expenses and use your income to pay
your bills.

This is a big mistake, and will more than likely result with you in even
further debt then before. Worse still with your consolidated loan you stand
to loose everything if you can't make repayments. Make sure that the
payments are within your reach before you sign up for your consolidation
loan.
You Don't Have To Do This Alone

Step 5: Get advice. Unless you are a financial whiz, and if you were then
you wouldn't be in debt anyway, you need sound advice on how to manage your
current situation. Maybe you could use a professional's help to find a
consolidation loan that isn't too risky, because of inflated interest rates.

Is A Debt Consolidation Company Right For You?

Never be too proud to ask for help, debt consolidation companies will often
give people in serious trouble with debt, a free consultation, and if you
need it, they can work with you, and teach you how to manage your debt.

Not all consolidation companies have your best interests at heart, and you
should be wary of those who are asking for large amounts of money from you,
or urge you to make donations.

A reputable councilor will advise you on the best way to manage your debt,
and have access to free educational sources and workshops. After all,
ignorance is never bliss when it comes to your financial situation.

You don't have to rely on a debt counselor to do everything for you. You can
do this yourself. By going for a free consultation, a counselor can put you
in touch with learning material and put your situation into perspective for
you. A counseling session will usually last and hour, and after that you are
given the choice to book another appointment if you want to.

About The Author: Liz Roberts is a loan consultant & a freelance writer for
http://EzCreditRepairSolutions.com Which specializes in credit repair tips &
helping people improve thier credit. For more articles on do it yourself
credit repair please visit
http://www.ezcreditrepairsolutions.com/DIYcreditrepair.html