Delray Credit Counseling Tips

Getting out of debt and more importantly staying out of debt can be a struggle at times. Delray Credit Counseling is dedicated to helping you achieve both. This site offers financial educational material to help you quickly get back on track. By offering tips, you can quickly see what you can do right now to help get out or stay out of debt.

Tips for Debt Consolidation Success

When you enter into a debt management plan, becoming debt free will require some planning and participation from you. Here are some tips for succeeding in Delray Credit Counseling’s debt management plan.

Now that you are a customer of Delray Credit Counseling, make sure you ask questions about we can do to help you stay on the DMP. Questions like, “How long does it take?” “How can I save money outside of the DMP?” and “How do I make a budget?”. Also make sure to get some references from satisfied customers.
Continue with the Program. Don’t quit! If you leave the program, you will still be in debt. Follow the guidelines put in place and seek help from a credit counselor about budgeting and savings.
Timely Payments. A debt management plan works with your budget. A Delray Credit Counseling agent will have gone through your income, bills and expenses to determine how much you can pay every month. Build good habits by paying on time. The success of the program will depend on it.
Do not take on new debt. You entered the program because you are in debt. It just does not make sense to pile more on top of it. Some creditors will kick you off the program if you do take on new debt. Remember why you came to Delray Credit Counseling in the first place.
Double check. Make sure your creditors are paid on time. It does not hurt to check in and make sure that your debt consolidation company is doing their job. Remember that late payments hurt you not the company.
Don’t be afraid to walk away. Make sure you can end the agreement at any time. Life has unsuspecting turns. If you come into more unsuspecting debt or lose a job, you need to have the freedom to walk away.
Getting back on your feet financially does not stop with the debt management program. Use the tools available to you and the advise the counselors are giving to better your personal finances at home. Create a budget and stick to it. The key to staying out of debt is to be financialy ersponsible. This only happens when the individual makes an effort.

Make a Budget

Click here to download a blank budget worksheet

Many people who have inquired about a debt management plan balk about being able to afford the monthly payment. The purpose of a debt management plan is to get you out of debt. These plans are often 36 – 60 months. Before you completely disregard the option of a debt management plan, you need to see how much you really spend on a monthly basis. We are not just talking about the bills. We are talking about everything from the rent to buying a pack of chewing gum at the store. The first step, whether you engage in a debt management plan or not is to complete your household budget. How do you know you can’t afford something, if you don’t know the true numbers? Only when you have a true picture of your cash flow will you be able to implement a plan for getting out of debt and planning your financial future.

Click on the link below. It will take you to a budget form for you to complete offline. To complete the budget form do the following:

Obtain a month’s worth of pay stubs for all of the contributing members of the household.
Gather all of the monthly bills such as the rent / mortgage, utility bills, car payments, credit card statements, child care invoices, student loans, etc.
On a separate piece of paper make a list of all of the little things you spend money on throughout the month. Make sure you itemize each expense and tally each expense so you can see where that “extra” money really goes. Items such as Starbucks, the drive thru restaurant, iTunes purchases, movie rentals, etc.
Once you have gathered all of the data, complete the budget form. For those expenses that have a due date, fill in the due date. Fill in all of your expenses from the data you gathered in the “ACTUAL” column for the appropriate expense.
Now we know how much you are spending, from there, let’s make a budget so we can fund a debt management payment as well as a savings plan for the future. Look at the tips in the cost savings measures to identify some areas where you may be able to free up some cash to hit your financial goals. As you go through the expenses create and “allowance” for each item, especially discretionary spending. You will be surprised how much money is lost in discretionary spending. This is where you spend your mad money, dining out, movies, etc. Put the allowance or limit in the “Budget” column.
Add all of the columns.
Compare the actual expense against the budgeted expense. If the actual expense is more than the budgeted expense on a particular expense then you are over budget, meaning this is an expense that needs your attention. Look for ways to bring that actual expense in line with the budgeted expense. Those items where the budgeted expense is higher than the actual expense suggests there is extra money in the budget that could be allocated to another actual expense item that may be over budget. Go through the budget line by line and adjust the budget items up or down to balance with the actual expenses in the appropriate category.
Congratulations, you have balanced your household budget. You now have the first piece in getting a hold of your financial future. Budgets are living breathing things. Make sure you review your budget every 4 – 6 months to make sure you are on track.

Delray Credit Counseling's Debt Questionnaire

Delray Credit Counseling has compiled a list questions that are often used to identify habits that may indicate a debt problem. Be honest with yourself as you read and answer the questions on this list.

Do you put off paying your bills each month because you are worried that you won't have enough money to cover them?
Do you usually or frequently make only minimum monthly payments on your loans?
Have you paid your rent or mortgage late because you don't have enough money to pay when it is due?
Are you charged to the limit on several or all of your credit cards?
Are you juggling bills each month just to get by?
Do you use credit cards to finance purchases of everyday expenses, such as food, gas, or rent?
Do you avoid letters, calls, billing statements, or collection notices from creditors?
Is your credit rating damaged because of late payments?
Have you used most or all of your savings to pay bills?
Do you and your spouse avoid talking about money, or do you frequently argue over money matters?

If you answered "yes" to any of these questions, it is a good idea to examine carefully why you said yes. For example, if you answered yes to the question "Have you used all or most of your savings to pay bills?" because you recently had unexpected large medical expenses, it may not indicate a long-term problem. If, however, you answered "yes" because you needed the money in your savings account to pay the minimum payments on your credit cards, you may indeed have a problem.

This quiz is not quantitative. In other words, if you answered "yes" to ten questions, it doesn't necessarily mean you are in more financial trouble than someone who answered "yes" to five questions. The point of this exercise is to be honest with yourself and to start looking at the reasons you're in the situation you're in and whether it would help you to get an objective opinion from a Delray Credit Counseling counselor.

Disposable Income Savings Tips

Disposable Income – Disposable income money you spend on everyday things ranging from a Starbucks coffee to a night on the town. Your budget should allow some form of entertainment / dining out; however, if you cut back for a while, you will be rewarded with more disposable income. Many clients who take an honest look at what they spend in disposable income can usually find if they adjust their everyday spending habits a little bit, they can save money and even stay out of debt. Delray Credit Counseling has provided some great tips to save money below.

Buying a cup of coffee every workday. Buying a cup of coffee every workday at Starbucks (or other coffeehouse) is roughly $88.00 per month. ($4.00 average cost * 22 work days per month). Brew your own coffee and take in a travel cup.

Going to the movies. Going to the movies every Friday night two tickets, two sodas, and popcorn cost $145.17 per month. Consider going every other Friday or subscribing to a rental service like Netflix for less than $10.00 per month.

Buying lunch every day. Whether you go through the drive through or go to a restaurant for lunch. You are spending $120.00 - $240.00 per month buying lunch every workday. The occasional lunch out is ok; however brown bag it. Leftovers from last nights dinner or a sandwich with some fruit is far less expensive.

Going out to dinner. Today, people are busier than ever. Often times preparing dinner at gets sacrificed simply because of time. A family of two will easily spend $25.00 - $55.00 per night dining out. A family of four will easily spend $40.00 - $80.00 per night. The average family dines out including take out 4 times a week. You are spending $433.33 - $1,386.67 per month. Cutting down to one or two nights a week can make a dramatic difference.

Allowance for the kids. Paying the kids an allowance is a part of growing up and becoming responsible. What we often don’t teach our kids is how to adjust our budget when money is tight. After all they are doing chores or “working” for the money right? Has you employer cut your hours to trim the company budget? Consider cutting the allowance for a short while. Doing so will teach your children a valuable lesson; your budget is a living breathing thing. It goes up and down based on income and expenses. Everyone from the individual to the government has no problem spending more money when they make more money; however when the tide turns everyone from the individual to the government has to make hard choices to bring expenses inline with reduced income.

Buying Bottled Water. People buy bottled water for various reasons. Some buy it because their drinking water is not the best, while other buy it for portable convenience. Buying bottled water can easily cost $15.00 - $50.00 per month. Consider a water filter and a reusable water bottle.

Grocery Shopping. Your grocery bill may indeed go up if you are dining out less. Always make a list and buy only what is on the list. Do not go to the grocery store hungry. Grocery stores employ a tremendous number of subliminal strategies to get you to buy more than what you otherwise would. The smell of fresh baked bread and pastries from the bakery, the free food samples, the big value buys such as buy three get one free, the layout of the store (notice how eggs and milk are at the back of the store?), and big displays showcasing certain products are all examples of what a grocery store does to get you to spend more money than you otherwise would. Falling victim to these ploys can increase your grocery bill 20% - 50%.

Pocket Money / ATM Card - This is where the little things really add up. Avoid cashing your paycheck and carrying around cash. Other than the fact you have a serious security risk, people often do not keep track of the small impulse expenses like a Red Bull at the gas station or a magazine at the drug store. It has been proven time and again, if people have cash on them, they will spend it with little or no thought. ATM’s are almost as bad. At least to get money out of an ATM, you must make a decision to go to the ATM and withdraw money. While it is safer than carrying all your cash, once its cash in your pocket you will spend it with little or no regard. Give yourself 10% of your pay to keep in cash and leave the rest in the bank. If you have to use an ATM for a particular reason, make sure there are no fees charged from your bank or the establishment where the ATM is located.