* Borrow only for items that you need and can afford.
* Borrow only when you less each month than you take home.
1 Start with your monthly take-home pay.
This is the amount you have after taxes and other deductions.
2 Subtract the amount you need to make the needs and fixed costs.
These include savings, your mortgage or rent, utilities, food, transportation, child care, medical care, clothing and entertainment. Include payments, based on a quarterly, semi-annually or annually, such as insurance and taxes.
3 Subtract monthly payments for loans and credit cards.
4 The balance is the sum, which can be applied to debt ratio.
Do not think that all of this amount, since emergencies occur, and you may not want to use your regular savings account for small unforeseen expenditure.
Monthly Take $ _______________ Fixed ---- $ _______________ Loans / Credit Cards ---- $ _______________ Additional Amount Available for Debt $ _______________ moral of the story: If you plan to buy a new house or a car, say that you have done, and begin the payment, but himself Within a few months, you will know whether And you really afford to have a little money for repairs, and so do if you are actually buying. If you do not pretend to pay, you are certainly not in a position to know the true constant. time to return on the drawing board and decide what you are willing to forgo, for the new debt.
HOW TO MANAGE CREDIT CARD USE Many people with credit problems, because they do not keep track of they make purchases with their credit - cards. An easy way to the monthly fee credit cards:
1 Determine the total amount you can be free to bill all your credit card accounts during the month.
2 Keep track of your credit spending in the same way you get a running balance of your current account.
3 Subtract amount each pay a monthly fee to the person you set limits.
4 Stop using your credit cards drawn by the balance to zero.
I charged salon services, movie tickets and luncheons with friends - which seem to cost more than lunches. Anyway ... John thought the only thing I couldn't buy on credit was happiness.
Early in our marriage, a time I refer to as B.C. - Before Credit - we paid for everything with cash or checks. Subtracting the cost of purchases from the total column in our checkbook made it easy to see our financial standing - or occasionally our financial leaning. Despite John's concerns, however, we never had to cash a check to buy a red pen.
Now I'm down to one credit card and John actually encourages me to use it. For every dollar spent we get miles for free or upgraded airline tickets.
John draws his credit card as fast as Billy the Kid drew his gun. John turns plastic into miles as determinedly as Rumplestiltskin turned straw into gold and John hoards his miles as carefully as Silas Marner hoarded his money.
John charges everything. If there's no posted minimum for using a credit card, John will charge purchases under a dollar. I occasionally wonder if store owners think we're one charge away from being homeless; but when we're flying business class on vacation and I'm sipping a glass of champagne, I stop wondering.
Several vacations ago my purse was stolen; and until I received my replacement credit card, I felt like a prisoner. A voice in my head kept saying, "Don't leave home without it".
Some people leave home too often. They act like Teddy Roosevelt and rush through stores yelling, "Charge!" I don't. I think I use my credit card wisely - often, but wisely.
When I check my month's collection of receipts with the charges on the statement, I've never found a mistake. Okay, maybe the Big Bird socks for Cousin Walter were a mistake; but I've never found a charge mistake.
Yes, I thought using one credit card was both convenient and profitable - until I read that a Diner's Club Card from the early fifties is worth more than one hundred dollars. Yesterday's credit cards have become today's collectibles. Now I'm collecting my thoughts. Maybe I should have more credit cards.
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