Page 45 - How To Set Up a Family Budget The Easy Way

balance transfers et al. and seek the advise of a professional to assist and advise you, on
how best to approach credit of any sort while on the mend to financial freedom,
reputation, repair and recovery.

 For family budgeting purposes, credit cards are for EMERGENCIES ONLY and should
not be used to pay for bills or luxury items. Carrying a high balance, missing a payment,
paying less than the minimum or other faux pas, might negatively affect your credit
rating and undermine all the other good work you were doing in your budgeting process.

 Watch out for steeper late charges, higher rates, annual service fees, interest rates and
charges, and cash advances.

 Using your credit card at an ATM for a cash advance can sometimes not be convenient,
as the rate and cash advance fees can total as much as 24% or higher. This is even more
than loan sharks or other payday like loan providers.
 Do not use credit cards for any of the following reasons: unbudgeted expenses you cannot
pay for; having no cash savings to help you with unexpected expenses, consuming more

than you can afford or impulse shopping.

Debt management and family budgeting actually fit like hand-in-glove together. They

compliment and strengthen each other if used appropriately and with caution, diligence and
commitment to change.

It is advisable to get a handle very early on in your budgeting process on what exactly the debt
situation is. For most people this is the most painful part of the process. Facing their monetary

past and the aftermath of overspending, lack of budgeting and large debt!

Extreme care should be taken early on as well to protect your financial interest. Review your

family budget spending categories and avoid debt by every means you can and not use it for
living expenses.

Repaying your debt should be the main priority. Consulting with a financial planning and debt

consolidation professional and specialist will help you answer the question whether you need to
consolidate, transfer, stop using credit cards all together, file for bankruptcy or what your other
options are. Exhaust all the possibilities before pursuing this route.

A personal debt review can be painful, but is very necessary to assess the status quo or where
you are now and how good or bad it is. What is the depth of your “obligation” category in your

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