| Hundreds of readers search for causes of consumer | | | | been stealing your money if you never check? |
| debt and how to deal with it. There's nothing scientific | | | | 3. Divorce. Many marriages fail and bring about a |
| about consumer debt or how to get out of debt. Many | | | | financial tragedy. When you decide to divorce, so does |
| will choose debt counseling to help with their debt | | | | all the money; bank accounts; real estate and anything |
| elimination; some will try debt consolidation and yet | | | | else of value. For many, bank accounts can be frozen |
| many will just bury their heads and wait. | | | | meaning no money coming but the bills will still pile up. |
| The first step for eliminating your debt is understanding | | | | 4. Saving too little or nothing at all. The easiest way to |
| the root causes. Some common causes of consumer | | | | avoid unnecessary debt is being prepared for |
| debt are: | | | | unexpected emergencies by saving three to six |
| 1. Decrease in Income. Many times we're caught off | | | | months of expenses. With a cushion in place, a job |
| guard with a job termination, an on-going emergency, | | | | layoff or illness will not immediately cause you financial |
| reduced work hours or overtime but we keep the | | | | turmoil and increase your debt. |
| same lifestyle. The sooner you learn to adjust to life's | | | | 5. Poor Money Communication Skills. It's extremely |
| new reality, whether it be temporary or permanent, the | | | | important to communicate with your spouse or |
| sooner you'll decrease that debt. | | | | significant other about finances. Be realistic with |
| 2. Poor Financial Management. Unless you have | | | | immediate family about what you can and cannot |
| droves of money and no worries, you need a monthly | | | | accomplish. Discuss financial goals and spending habits. |
| spending plan. Without a plan, you have no idea where | | | | If you're a saver and believe in preparing for |
| your money is going. You may be spending hundreds | | | | uncertainties but you're married to a spender who lives |
| of dollars unnecessarily. Your spending plan is no more | | | | for the moment, you will want to create a strategy for |
| difficult than writing down any of your expenses and | | | | both to get what you want. Become knowledgeable |
| income and integrating the two to see where the | | | | about household and each other's personal |
| money is going. How would you know if someone has | | | | expenditures. |