Managing finances is a key part of owning your home. No matter what your individual situation is, there are specific things you can do to ensure you don’t run out of money and end up with nowhere to live.
The first step to saving money is to identify the person’s finances so you can act on it and start rebuilding your credit.
This is by far the easiest and most effective way to ensure that you never become buried in debt.
Once you know the person has big, unmanageable bills that are sitting on their credit cards, try to cut them down to size by helping them eliminate those that are left and paying down the ones you can. You need to know how much your income is going out every month and work from there to figure out where you can cut expenditures.
Before you even talk about eliminating credit card balances, get their number and call them on the phone. Let them know that you are working on their finances and that you’re willing to help them if they want. They’ll usually appreciate the offer and it will make the process go much smoother.
Another money management tip is to teach the person about managing money.
Learn to apply the principles of monetary management. If you get them to accept responsibility for their actions and learn how to save some money, you won’t have any hard time convincing them to do it.
Once the person realizes that money management isn’t something they’re interested in learning, then you can do it for them. Sometimes you’ll have to take more drastic measures to force them to deal with money issues. If they’re not up to the task, you’ll probably have to evict them.
One of the most important money management tips you can have for a person who is struggling financially is to have them pay off those credit cards as soon as possible. Once they’ve paid off their balances, try to steer them away from debt as much as possible. Anything else you can do that will prevent them from accumulating more debt on those credit cards is worth doing.
There are lots of different money management techniques you can use to help people save their money. Try these money management tips in conjunction with the financial education that you provide at your agency.
A lot of money management programs work well for someone who knows how to manage their money. Many times you can get someone who struggles with their finances to get back on track by combining different money management techniques into one. For example, you can combine a no interest loan with a money market account to bring in additional funds without having to incur higher fees or carry a high interest rate.
You can learn the different money management methods involved by taking a class at a local community college. Or, you can simply enroll in a local financial literacy program and learn to apply the ideas they teach.
You can also help a person with credit card debt by paying off credit card balances regularly and by being patient and sympathetic when the person becomes anxious about their debts. While it may be easy to ignore the person because they seem unresponsive to you, the truth is they’re suffering and you have to treat them with respect.
In closing, if you take a proactive approach to handling the finances of someone in your life, then they’ll find it much easier to get back on track and eliminate their own debt. You should always remember to be sympathetic and understanding with a person’s finances and never penalize someone for their behavior or history of debt.