It may seem to most people, that developing a debt consolidation solution budget should be an basic task, however most people are simply not inclined to work with spreadsheets, balance check books or lay out a formal budget, whether it is by nature, or as a result of a bad reaction to public school mathematics training, a good number of people just aren't numbers people.
However, most will find it in their self-interest to make the effort to detail their income against expenses, even if it means getting someone else to help undertake the task. The debt consolidation solution budget should include monthly income and outgoings / items, projections of expected increases and decreases in income / wages and bills and a good amount of money as a buffer for any unexpected events.
Most people have difficulties, if you feel uncomfortable using spreadsheet software, which is available for free these days either through Open Office or by doing a Google search for documents and spreadsheets, at least jot down some figures on a legal-sized pad.
Preparing a debt consolidation solution budget.
Simply divide a spreadsheet or page into two columns, in one column, include all income / wages / remuneration, in the other column write down all monthly costs / bills, in this column include all major regular bills, groceries, gasoline, etc, if you can you should add at least 10% for unexpected bills, now for one of the most important tasks that too few people undertake, try to project different scenarios that could occur, make another budget that shows projected monthly costs, income and note the difference between the two should any of these events occur.
You can also exclude monthly credit card interest amounts, auto loan interest, up to 25% of any impulse buying amounts, and then sum the amount of those three together. These three items represent the amount of money you could conceivably avoid paying every month, if the total is even as low as 10% of your monthly items and for a good number of people it maybe higher, you are paying a substantial amount of your income to interest that could be avoided.
No one other than yourself, being as realistic as possible and true to yourself, can decide whether that 10% overhead you pay is worth what you acquire in return by having certain items earlier than you would normally by saving for each item / service, nonetheless please consider this, by saving that 10% APR paid on $2,000 for one year is, $110.00 and some people pay only the minimum monthly payment, which amounts to much more, that is $110.00 you are paying solely to have certain things costing $2,000.00 a year a little earlier.
Only you may decide which is worth more to you, nevertheless preparing a debt consolidation solution budget will help you make those decisions rationally.
