Get rid of bad debt, relieve stress today
Issue date: 11/16/08 Section: FYI
(ARA) - Given the current economy, it is no surprise that Americans are stressed out about making ends meet, which is affecting their work and personal relationships. Nevertheless, many are optimistic and say they are committed to persevering with their personal finances, according to a new survey.
The Western Union Money Mindset Survey, taken in August, shows consumers are taking steps to manage their bill payments so they can pay on time and reduce their stress. For example, one in four (25 percent) have cut recreational activities (gym memberships, sports gear) and nearly three out of four (72 percent) have cut back on dining out.
"Americans have worked too hard to save their money and pursue their goals, and they are not going to just give up. Many people are wisely scaling back their budgets and seeking solutions that will greatly improve their situations," says David Shapiro, senior vice president at Western Union. "Only 4 percent of people who believe their situation is going to get worse feel that declaring bankruptcy or defaulting on debt will help. To improve their situations, many are looking for a new, better-paying job or a second job to keep up with their bills."
One in five Americans is paying bills late, the survey shows, and 31 percent of those surveyed were waiting longer to pay, racking up late fees and risking good credit standing.
Bad debt isn't healthy for individuals or the people close to them. And some choices made to correct bad debt, such as withdrawing from a 401(k) account to make bill payments, can lead to bigger issues, impacting future financial activities like obtaining loans for mortgages and cars or getting a job. Here are some tips to help people avoid and reduce debt:
1. Start or revise a monthly budget -- Use calculators at www.BankRate.com to determine if your mortgage should be refinanced or if your money market account is earning interest that can help you build up savings or pay your bills off faster. Visit www.financialplan.com to download a budget tracker as a monthly guide for managing your money. You can also examine your expenses and see what you can cut back.
The Western Union Money Mindset Survey, taken in August, shows consumers are taking steps to manage their bill payments so they can pay on time and reduce their stress. For example, one in four (25 percent) have cut recreational activities (gym memberships, sports gear) and nearly three out of four (72 percent) have cut back on dining out.
"Americans have worked too hard to save their money and pursue their goals, and they are not going to just give up. Many people are wisely scaling back their budgets and seeking solutions that will greatly improve their situations," says David Shapiro, senior vice president at Western Union. "Only 4 percent of people who believe their situation is going to get worse feel that declaring bankruptcy or defaulting on debt will help. To improve their situations, many are looking for a new, better-paying job or a second job to keep up with their bills."
One in five Americans is paying bills late, the survey shows, and 31 percent of those surveyed were waiting longer to pay, racking up late fees and risking good credit standing.
Bad debt isn't healthy for individuals or the people close to them. And some choices made to correct bad debt, such as withdrawing from a 401(k) account to make bill payments, can lead to bigger issues, impacting future financial activities like obtaining loans for mortgages and cars or getting a job. Here are some tips to help people avoid and reduce debt:
1. Start or revise a monthly budget -- Use calculators at www.BankRate.com to determine if your mortgage should be refinanced or if your money market account is earning interest that can help you build up savings or pay your bills off faster. Visit www.financialplan.com to download a budget tracker as a monthly guide for managing your money. You can also examine your expenses and see what you can cut back.
Viewing Comments 1 - 2 of 2
Debt Reduction
posted 2/28/09 @ 3:00 PM EST
Great article. After you've got your budget figured out, hopefully you've got some money left over to either save or pay off debt. You need to consider where you want your money of course (like the emergency fund that was mentioned, retirement savings, etc), but starting a debt snowball can be a great way to knock out those high interest credit cards, especially if the only other options are low yield savings accounts or plummeting stocks and mutual funds. (Continued…)
tiffany
posted 3/02/09 @ 4:51 AM EST
Many time I search Tiffany & Co Silver Jewelry on google search engine, there's so many Tiffany Jewelry site sell the Tiffany Rings, the massivelly counts of Tiffany Earrings site curiours me so much, I didn't know where to buy the Ttiffany Necklaces for my friend, then I think I can buy the Tiffany Bracelet as the birthday gift, at last I choose the Tiffany brand not the true gift I thought
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