But in reality that kind of thinking needs to change and in fact it is never too early to start saving for your retirement.

Preparing for retirement is crucial and should be implemented early in your work life. Whether you work in a corporate environment or in a less structured workforce, there are ways to invest in your future without causing too much financial strain today.

Learn the Basics

Changing your lifestyle to incorporate long term savings is not as difficult as it seems. Here are a few basic tips to help you understand what needs to be in place when you begin your retirement fund.

I remember telling my son to start his retirment fund when he began working in his early 20′s. He thought I was crazy. But he did start a small fund and now he is well on his way to a worry free retirment. It always pays to listen to your parents and I remind him of this as often as I can.
1. Get informed. Talk to your family, your bank, and a financial advisor to gather the information you need to make an informed plan of action.
2. Determine the right age you wish to retire. What are the laws in your region? Depending on your age this will help you determine how much you need to put aside each month to achieve your goal.
3. Make a budget. Estimate how much it costs to live presently and how much you will need after you retire. Your financial situation will be different at that time, but the more you invest, the better quality of life you will enjoy.
4. Choose the plan that is right for you. It can be a savings account, an employer sponsored plan or a self employment plan. There are various retirements options that can be implemented offering tax incentives.
5. Use all tools available. Have your bank or your employer direct a percentage automatically to your retirement fund each month or each payday. Your money will continue to grow while you learn to live with less disposable income.
6. Be diligent and stay informed. As your funds grow, learn as much as you can from the professionals while you reinvest and reallocate your funds. Keeping tabs on your portfolio keeps you focused and in charge.

Keep Goals Realistic

Though there are times that life’s responsibilities may derail your nest egg, the sooner you get back on track the sooner you can feel confident that you will meet your future goals.

When it comes to your money, keeping yourself informed is the best way to make the biggest impact.

Financial freedom can be achieved for many; it’s all about priorities and planning.

Sensible Guides.

Add miscellaneous expenses such as housing, food and transit to the equation and it is easy to see how saving money can be overwhelming.

But it can be done. It takes time, patience and a whole lot of planning. And the sooner you start the process, the better.

Looking for Funds

There are a plethora of scholarships and government grants available and all it takes is research to see what you are qualified for and time to apply for each one available.

Talking with a guidance counselor can also provide information on Government credit programs that may be available.

Most colleges provide financial aid programs as do financial institutions, however check to see where you will get the most value for the least amount of interest.

Budgeting 101

While attending college there are many strategies that when put into play can help save money in the long run.

Attending college from home can save a substantial amount of cash. If that is not an option then find an apartment near the campus and share your expenses with another student if possible. Avoiding extra transportation costs can make a big difference in your budget.

Buy second hand text books and equipment whenever possible. Check bulletin boards for what people are selling and pass the word on which classes you are taking and what you are looking for

Many stores cater to students so be sure to inquire if there are discounts available. There will also be discounts on local and long distance travel as a student so use your ID card often.

Pay with cash or debit whenever possible and check with your financial institution for students benefits. Often bank fees are waived while students are in school.

Make a long term and a short term budget. Determine the amount of money you need per semester then budget what you need weekly and then daily. Stick to it and if need be, ask a friend or relative to help you manage your funds and keep you on track.

Get a part time job if you can. If you have the time to squeeze in an extra shift when not in school you can earn extra pocket money for either school supplies or recreational activities.

The Bottom Line

Learning how to budget and save money has to begin early and teaching your children how to plan for their education is a gift that will take them far. With the changes in the economy and the funding available, there is no better time to learn where you can save a few dollars and plan accordingly.

Sensible Guides.

As you age and accumulate property, and especially when you start a family it is even more important have a will in place. By providing for your family in advance it can lesson any additional burdens at a time of great stress and sorrow.

Though there are many approaches to constructing a will the most effective way is to first, have a carefully planned discussion with your family and then retain a lawyer to prepare a formal will and testament. At that point it becomes a legal document and is kept on file with your lawyer.

There are online forms and kits that can be purchased for very little cost that can help in breaking down the issues that need to be covered and are a great starting point in making a personal inventory. It is not a difficult process nor is it costly, but it is necessary.

The Basics

Of course all Countries, States and Provinces have different laws that apply depending on where you live and even where you die, this is merely a general guideline to help you understand what a will entails.

Essentially a will is a legal and binding document that specifies who will inherit your property after death and what share they will receive. It will name the beneficiaries of your estate and will appoint an executor to aid in the distribution of assets. It will also name the guardian of all minor children that are survived.

An executor is someone you have chosen that is trustworthy and has been made fully aware of their role. They will be officially appointed by a probate court and are expected to sort through your estate, settle any outstanding debts and funeral expenses. They liaise with the lawyer, make decisions and carry out your wishes based on the requests stated in the will.

If an executor has not been chosen the lawyer will take over the task or appoint a profession service if there are considerable assets to disperse.

A beneficiary is typically family and friends but can also be organizations and charities that are included in the distribution of assets.

In most cases anything that is jointly owned is automatically passed onto the surviving owner however it is crucial for both owners names to be included on all jointly owned assets and accounts.

Things to Consider

A will does have some exclusions and that must be taken into account. Any payment, retirement and life insurance plans that you may have in existence will have asked you to name a beneficiary when initially drawn up and as a result is also a legal and binding contract.

These contracts will supersede what is stated in the will therefore it is imperative you know who is named as beneficiary on all documents.

Most family lawyers can prepare a will and offer legal advice for a standard fee. They will provide you with a copy and make any changes and requests as time and circumstances change. There will be a fee for each change so a review is necessary from time to time to reflect your current situation.

Though it may cost more than a “do it yourself” plan, you can be sure to have your legal rights maintained without extra worry.

It takes time to put the pieces together after a death and with a legal will in place, the time healing can be made a little less stressful. Talk with your loved ones and make a plan to protect your family now. It’s the best investment for future piece of mind.

Sensible Guides.

Gone are the days of banker’s hours and rigid rules. Today’s banks cater to each generation’s needs in an effort to increase their customer base and keep their clientele happy in an extremely competitive industry.

With the variety of financial institutions we have competing for our money, it’s important to tailor your accounts to match your lifestyle. It just takes a bit of research to find which one works best for you.

Typical Accounts

Children, or a minor’s accounts, generally offer higher interest rates when there are regular scheduled deposits and normally waive maintenance fees until they reach adulthood. Be sure to ask if there are there tax incentives for the different types of accounts and if there are any tax fees to be aware of. Each state, or province will have their own laws so it’s best to familiarize yourself with the laws pertaining to where you live.

Student accounts much like the children accounts, usually do not charge service fees until the age of 18 for a savings account. There is usually a minimum deposit required depending on the institution. As the student ages and the amount of transactions increase, there may be associated fees so again, its a good idea to keep up to date on any changes and modify the accounts as the student becomes more involved in their own banking.

Bank accounts for the general adult population are plentiful and offer many rewards to cater to our interests. For those who uses little actual cash, and more plastic, a standard service fee with unlimited transactions is your best bet. For those with less account activity, there are often higher interest incentives.

Today many banks offer reward programs for using their branch credit cards such as travel points or yearly cash back incentives. Some may even add cash to your savings by using their services cards in specific ways.

Banks also recognize that seniors have spent most of their lives saving to make sure that their retirement is as comfortable as possible. Bonds, accounts and shares all mount up to make senior saving a very lucrative industry. In terms of profit, seniors make these businesses significant money and most institutions are happy to pay it back via preferential rates of interest and free services.

Read the Fine Print

It’s very important to read the terms and conditions of any account before you opening it to understand exactly what you are signing up for. Be aware of the penalties if you exceed your transactions per month or withdraw money before a specific time. There may also be preferred interest rates if your balance is kept above a certain amount.

There are different rules for different banks and its worth taking the time to shop around before you decide. Whether you have been with the same institution for years, it may be more financially sound for you to consider switching to another provider.

Let’s face it, we all work hard for our money and if banks and other financial institutions are willing to compete with free bonuses and free cash, then it’s worth finding the best place to make your money grow for you.

Sensible Guides.

The Federal Trade Commission (FTC) has become increasingly aggressive with it’s crackdown of this type of fraud with significant jail time and hefty fines for people who are convicted. Sadly, we often hear of people who have been victimized this way but will not contact the authorities because they are too embarrassed to admit they were taken in.

The best way to protect yourself is to know the differences between legitimate offers, scams and how they target you.

The Contact List

Cold Calls – The telephone directory is a simple yet effective tool for con artists to contact you and start a dialogue in hopes of gathering additional information from you.

Mailing list – These lists contain information about people who have responded to previous solicitations and already have the name, phone number, and how much money was spent. The lists can be bought and sold by anyone and are are invaluable to scam artists.

Direct Mail - You may get a notice stating you have won a prize or a contest and be instruct to respond with specific information. You will then be called using the information you provided with a hard sales pitch or false claim.

Television and Print Ads – You may have placed an order from a magazine or a television ad. Your information based on that order is funneled and sold in order to contact you for additional and future sales. The fact that you initiate the call doesn’t mean the business is legitimate.

Often it’s hard to tell whether a sales call is legitimate. You may have a valid interest in the products that are being offered and telephone con artists are skilled at sounding caring and believable.

They are quick to elicit information from their victims and play on their needs such as loneliness or poor health. Unfortunately, the elderly are a prime target.

How Can You Protect Yourself?

Thankfully, we are becoming savvier to these fraudsters. Here are a few tips to remember when that unsolicited call does come in.

• Don’t allow yourself to be pressured in making a decision immediately.
• Don’t give your credit card, checking account, or Social Security number to anyone unless you have initiated the call and know exactly who is getting the information.
• Don’t pay for something merely because you’ll get a “free gift.”
• Don’t send cash by messenger or overnight mail. By using your credit card, you have the option of canceling any suspicious transactions.
• Don’t agree to any offer where you have to pay a “registration” or “shipping fee”.
• Don’t confirm your account information over the phone. If you are requested to do so, ask for the head office number and call at a later date.
• Request for written information on a Charity before you decide to donate.
• Don’t be afraid to say “no thanks” and hang up the phone.

Check out any unsolicited offers with your local consumer protection agency or the Better Business Bureau. You can access this information online or from the telephone directory.

You can also register to be on the National DO NOT CALL list. It’s a free and easy way to reduce the amount of telemarketing calls and your number will remain on the list for life. If you don’t want a business to call you again then say so. If they call back, report them, they are breaking the law.

Anyone can fall prey to telemarketing scams and with the variety and complexities of con artists today, it’s becoming increasingly important to get the word out on the best way to protect ourselves and those we care about.

Sensible Guides.

Being armed with some solid information, good common sense and a few well known tips, you can drive away feeling good knowing you were able to get the best deal. When it comes to buying a car everyone is looking for the win-win situation and yes, it can be done.

Planning Your Purchase

The first rule of thumb is going in knowing that both you and the dealer are working towards the best deal for both parties. Though the bottom line is increased revenue for the dealership, pleasing the customer is often given the same priority. With these big ticket items, word of mouth and repeat business is the lively hood of any business and this can be used in your bargaining.

Here are a few tips to keep in mind when you start your search:

1. One of the best times to purchase your vehicle is at the Christmas Holiday time.The end of the year often has dealerships struggling to make their yearly quotas. You may find salespeople offering discounts and incentives in order to bring in sales.
2. Not to be confused with the calendar year end, most dealerships have their fiscal year end from July to October. This is when their inventory is being cleared out to make room for the new models. There is always a push to sell last years stock on both new and used vehicles so if there is something you like… make an offer.
3. With the internet you can take hands on approach by doing your own research on what is available in your city, state, or province. Print all the information you find, bring it to your dealership and see what they can do to accommodate you or match the prices.With quotes from competitors in black and white, you have leverage when it comes to your negotiating power.
4. If you have it available, bring a copy of your credit score with you. It may lower your interest rates on your car loan and it also guards you against any potential financing scams. This may happen where you are told your financing “fell through” and you are required to pay a higher interest rate on the loan than originally quoted.Your credit report is available for roughly $15.00 and it’s worth it.
5. If you are trading another vehicle in that has money owing, be sure to have the dealership state in the new contract they will be responsible for paying the loan off within a certain time frame. If not, you may be held responsible for monthly payments and late payment fees on your old vehicle until the dealership finalizes their own paperwork, which may take several weeks.
Our daughter went to purchase a car for herself and had a good idea of what she was looking for. The salesman kept trying to steer her into a station wagon that she wasn’t the least bit interested in. The clincher for her, was when he made the mistake of pulling down the passenger side visor to point out the useful makeup mirror as a selling feature. She walked away from the salesman, marched into the managers office and gave them an earful on what she thought of their selling practices…. She didn’t buy from that dealership.
6. Be aware that if a dealership does not have the vehicle with the options you want they will attempt to locate it from another dealer. When this happens a deposit is usually required. Negotiate for the smallest amount of deposit available and if possible, use your credit card. There are instances where the dealer will attempt to charge you more when the vehicle comes in claiming a price increase. By paying with your credit card, you have the option of canceling the sale if this becomes an issue for you. You can do the same with a check; however it will take longer for the return of your deposit.
7. You should never appear desperate when you are buying a car, even if you are. You could be taken advantage of and pay far more than necessary. Rent a vehicle for a week or two while you are searching for the best deal. It may cost initially, but you will save in the long run.

The Bottom Line

There are many reputable dealerships and just as many reputable salespeople that are happy to do business with informed customers armed with knowledge of what they want and the price they are willing to pay.

There are also many unethical people in the business as well. Never be shy to walk away from anyone who tries to bowl you over with nonsensical facts and figures. You are the paying customer and it’s in the dealerships best interest to make you happy.

Sensible Guides.

No matter what the scale, we have become accustom to debt and lost the ability to see clearly the consequences of unwise financial decisions and a heavy debt. It’s time to take a good hard look in our own lives at what we can do to get back on the right track and rebuild a solid financial foundation.

Prevention Is the Best Medicine

Everyone needs to create their own Financial Plan. It may sound like a daunting task but in reality it’s all about planning. By setting the time aside to discuss with a professional you can begin to outline your financial goals and plan for unexpected events that are bound to arise throughout the years.

Unfortunately, many people avoid the reality of the unexpected and without an emergency fund, they add to their debt load with more credit to make ends meet. This type of cycle can not only be overwhelming but incredibly difficult to break.

Talking with someone you trust can help you make the changes into redistributing your income in a smarter way. By taking control of how we spend, we are controlling how much we can save and this can be one of the best ways to reduce your family’s level of financial stress.

Creating Your Financial Plan

The first step is to divide all income into four main categories;

Fixed Expenses – These are expenses that do not change, such as rent, mortgage, insurance, and vehicle payments. There is seldom changes with these expenses and are often the lions share of the monthly income.

Variable Expenses – This is how we manage our lives with food, bills, childcare, transportation, repairs, entertainment, etc… The more we stay away from using credit cards in this area, the more successful we will be in the long term.

Savings – This is where we need to build a growing cushion to cover unexpected future needs. It’s important to be disciplined here. An easy way to manage this is to choose an amount as a percentage of your income. A good rule of thumb is 10 – 20% of your monthly net income. Once the amount is decide you must be diligent by having the savings withdrawn automatically and into an account that will earn interest without risk.

Debt Repayment – This is as important as your savings in recovering from a heavy debt load. This includes credit cards balances, store credits, outstanding loans, penalties and fees. Never pay just the minimum balance on your credit cards and pay off the highest interest bearing loan first. When you have paid down one debt, add the extra cash that’s now available onto the next high interest loan and continue the pattern until you are completely debt free.

In understanding the basics in creating a financial plan, you are building a solid foundation that will leave you less vulnerable to the uncertainties of life. By implementing a few key strategies and living within your means, you are being proactive and staying in control of your finances. And this is the key to getting out of debt, and staying out.

Sensible Guides.

The Certainty Of Change

These cyclical swings in value happen with fundamentally sound investments or not. The share prices of the biggest, high quality blue chip companies in the world can go down “in sympathy” with everything else, and stay there should the news of the period be negative enough.

When changes occurs in the stock market, it’s commonly referred to as a bull or bear market. In “bull markets” overall prices go up, and in “bear markets” prices go down. External, and completely unrelated events can have a profound impact on the direction of stock prices. Economic reports, Federal Reserve meetings, company earnings announcements and news events all impact stock markets.

The price of the overall stock market is often measured by their “indices”. These are a representative basket of company stocks, such as the Dow Jones Industrial Average, composed of 30 large companies, or the S/P 500 which is the top 500 largest actively traded companies in the U.S.

Investment And Emotions

And their hopes get dashed when a sudden negative turn of events swings prices in the other direction, into a bear market. When one looks at a historical stock price chart, it’s plain to see the pattern – stock prices usually go down much quicker than they go up.

Fundamental Lessons About Bull And Bear Markets

If you follow these guidelines you’ll be using sound investment principles at play:

Purchase quality investments

Make sure they have been thoroughly vetted by someone with the necessary expertise to do so. This is indeed rocket science. These are holdings that you should feel comfortable owning through thick and thin, unless some important factor specific to the company has changed. The companies that regain their losses soonest after the bear market ends, are the quality firms with strong fundamentals and operations.

Maintain realistic expectations and stay calm.

Many new investors cut their teeth during the tech boom of the 1990′s. They suddenly had the ability to buy and sell stocks on their own, through Internet-based brokerages. They were, however, basically ignorant of stock investment best practices.

As a result, their expectations were unrealistically high for the long term. 15%-20% gains per year became the new norm. Unfortunately, these same investors saw huge percentages of their portfolios disappear after the subsequent crash.

The stock market has averaged roughly 7% a year returns over the long haul. Year to year returns, on the other hand, are always uncertain and unknowable.

Know your risk tolerance

When prices decline and you find yourself starting to panic, know you’ve taken on too much risk. Successful investors look at “bear markets” as a period when stocks are “on sale”. They know their chosen companies inside and out, so they’re confident and don’t panic. If the case merits, they buy more stock.

So ask yourself how much you can afford to risk while still maintaining your goals. If you’re in for the long term, you’ll base your investment decisions on principles and fundamentals.

Principles And Fundamentals

Principles include risk diversification and your life circumstances. Fundamentals take into account valuation metrics and dividend yields. They help to determine how “cheap” or “expensive” a stock is. Expensive stocks fall hard and fast in a bear market. Many investors learned this lesson after the market crash in 2000-2001.

It’s important to maintain adequate liquidity and a cash cushion. Life is full of unexpected events like medical emergencies. If you sell during bear market lows because you had inadequate cash savings available, you’re be guaranteed to lose substantial amounts. On the other hand, if you keep a certain percentage in lower, safer, more liquid investments, you’ll be happier when you have to write that check.

Patience Is A Virtue

Overall, the best approach is to remain patient during bull markets and be aggressive during bear markets. It’s the opposite of what most average investors do, yet exactly what the world’s best investors do. Remember, however that the experts do have access to better information and their ‘sweet-spot’ decision-making ability has been honed over years of practice.

So make sure you have the money to risk and the patience to wait through the temperamental blips in the market. It sometimes takes nerves of steel and the patience of a saint.

Sensible Guides.

With the variety of sizes, designs and colors, the search for diamond jewelry can be overwhelming.
Do your research and and arm yourself with some background information before you begin to shop. Having a general understanding of what to look for will go a long way when you are ready to choose that perfect piece.

The Four C’s

How do you find diamond jewelry that feels right for you, emotionally and financially? You need to become familiar with the four C’s.

Cut

Cut gives the diamond its brilliance. It is about the number of sides in a diamond. It is the most important factor in assessing the stone’s beauty. Cut refers to the precise proportion and dimensions of the finished diamond.

A properly cut diamond allows light to enter and be refracted, creating its brilliance. If cut too shallow or deep, your stone will look dull and lifeless. When well cut, it has more color and clarity. As a result, it appears larger and of a better grade than it actually is.

Color

To the naked eye, most diamonds appear colorless, but they do have very subtle shades of color. Experts use the letters D (colorless) to Z (light yellow) to designate the color.

A colorless diamond is chemically pure and structurally perfect. As it is transparent, it produces the most amount of brilliance and tends to be the most expensive of all.

Most natural diamonds however are imperfect. The color is created by chemical impurities or structural defects in the stone’s crystal pattern. It causes a yellowish to brownish tint. There are also blue or pink diamonds and they are considered even more desirable and can command some very high prices. Gemologists label diamonds with unusual or intense colors as ‘fancy’ diamonds and they have their own rating system.

Clarity

The natural imperfections in diamonds are called inclusions. They are minerals or crystals that are trapped inside the stone, and determine the clarity of the stone.

Nearly all stones have characteristic ‘birthmarks’ which make them unique and identifiable. These imperfections are graded accordingly and determine their value: from IF (internally flawless); VVS (very, very slight inclusions); all the way down to (I) (visible inclusions).

Carat

This is the measurement of a diamond’s weight. One carat is 200 milligrams. The point unit (0.01 carat or 2 milligrams) measurement is used on stones of less than one carat. Total carat weight (TCW) is used when referring to the total mass of the stones in a piece of jewelry.

Normally, the price per carat increases with carat weight as larger diamonds are more rare and consequently more desirable. However, carat weights are not the final arbiter of value. A smaller stone with better color and clarity will fetch a better price than a larger one with poor color and clarity.

Here are some useful tips which could help you in choosing the right diamond for you or your beloved.

Your Budget

Whenever you are buying a gift, an engagement ring or anniversary present, always think about how much you can afford and are willing to spend. It is never a good idea to purchase something which would eventually cause you to run into major financial debt.

Research

Internet websites are great sources of information when determining what kind of cut would be ideal. Start by researching different cuts and preferences. That way you’ll get a ballpark figure on how much it would cost.

Ring Band, Craftsmanship And Design

Consider the type of metal band design and overall craftsmanship used for the ring. Metal bands consist of yellow gold, white gold, titanium or platinum at various price points.

Trusted Jeweler

Ask your family and friend’s opinions about where to buy your diamond gift. There are large national chains with considerable inventory’s and there are local jewelers within your community that may have custom pieces and do made to order creations as well. Do your homework and look for jewelers who are members of the American Gem Society and other similar reputable organizations.

It’s Not Just The Jewelry

When buying diamond jewelry or any other precious gem, always check the return policy. There are some retailers who would sell jewels at a low cost, only to find out that they cannot be returned. Aside from that, always make sure that the diamond you will be buying comes with a lab grading report or certificate.

Choosing the diamond jewelry of your dreams actually boils down to your attraction to a particular stone and its characteristics. Knowing the four C’s is important for future assessments, insurance and of course, ensuring the quality of what you are buying.

Sensible Guides.

Depending on the severity of your current financial situation, you may be able to get back in control by utilizing some of the following strategies that in the long run, really can make a difference.

1. Wipe Out Excess Expenses

Start by writing everything down.  Go through the list and eliminate all expenses for things you can do without, at least until you get your money under control.

• Do you have a mortgage or a vehicle loan?
• If so, what is your interest rate?
• How much are your monthly payments?
• What is the outstanding balance?
• List all your necessary monthly expenses like electricity, telephone, insurance, food, etc.
• Then eliminate all non essential monthly expenses, including entertainment, eating out, club memberships, subscriptions and any impulse buys you may make in a given month.
• Itemize all of your credit card debts, paying particular attention to recurring payments.
• Get your last monthly statement from each credit card and write down both the outstanding balance and the interest you’re paying on that balance.

Once you’ve eliminated the excesses, add up the amount you’ll save every month. In all likelihood, you’ll be pleasantly surprised by the amount of money you can salvage every month by just exercising stronger control. Seeing it in black and white packs a powerful punch.

2. Make A Cash Diet Plan

If you have a family, they will obviously be impacted, so get them involved. When you work together, you’ll reduce your debt much faster than if you attempted to do it alone. Don’t dwell on the negative but focus on the incentive to creatively find other ways for everyone to get what they want at a reasonable cost to the whole family.

For example, you may re-discover cooking. It takes no more time to cook a great meal than to go to a restaurant and wait to be served, eat and drive back home. The savings (not even counting alcohol) can easily be more than $200 a month. You can instantly apply the money you save to pay down your credit card debt. Remember to pay off your highest interest card first if you own more than one card.

3. Start A Part-time Job

Consider a second part-time or seasonal job.  Anything from wrapping gifts at the local mall to lawn and garden help for the summer. Whatever extra money you can bring in might just be the difference between filing and warding off bankruptcy. There are adverse consequences to bankruptcy that can and will affect you financially for up to 10 years, not to mention the emotional toll this often takes on everyone.

4. Cash In Your Equity

If you have equity in your home, you can refinance to lower your monthly payments. Or, you can use the home equity to get a low interest loan to pay off debts. Talk to someone you trust to see if this is an option for you.

Don’t forget about other assets you can turn into cash. Think about any antiques or collectibles you own. Perhaps this is the time you seriously consider selling those assets and using the cash to pay down your debts.

Make a list of everything you own that you can quickly and easily sell. Check your closets and your garage. You’ll likely find some items of value that you can live without. Have a garage sale to turn those items into cash. You may even be able to sell some of them on eBay or through local consignment stores. Its a new world, someones trash may often be someones treasure.  Make it work for you.

5. Consolidate All Your Debts

Debt consolidation is probably one of the easiest alternatives to bankruptcy. This involves getting a loan at a low interest rate and then using it to pay off all your high interest loans and credit card debt. Most debt consolidation lenders have arrangements with credit card companies and debt collection agencies so they’re able to process your loan and get your debts paid quickly.

The end result is that you have one low interest payment each month instead of many different payments. And, because your interest is lower, more of your monthly payment is actually going toward reducing your debt than if you continued making payments directly to the original creditors. Again, talk with someone you trust to be sure you are getting the best advise for your situation.

6. Hire A Debt Negotiator

If your current debt load is simply too large to qualify for a debt consolidation loan, you can consider debt negotiation. A professional debt negotiator will negotiate with your creditors to reduce your debt. After the negotiations are complete, you’ll still pay a monthly payment to your creditors but your overall debt to each creditor will be reduced.

Creditors are generally willing to negotiate the total amount of your debt as they are keenly aware of the risks involved if you are forced to file for bankruptcy.  Once they know there is involvement with a debt negotiator, they will quickly see that bankruptcy is a real possibility.

You can certainly negotiate with your creditors yourself however, you will undoubtedly have more success if you hire someone with more experience in the process.

7. Get Consumer Counseling

There are many non-profit consumer credit counseling agencies whose sole purpose is to help consumers get out of debt and stay out of debt. They can help you better understand your financial situation, teach you how to draft a budget and a help you with a workable debt management plan for long term success.

Your credit score will no doubt drop couple of points after you sign up, but it won’t be nearly as severe as filing for bankruptcy. Some states now require this step be taken prior to filing for bankruptcy itself.

The old adage “an ounce of prevention is better than a pound of cure” applies to personal financial health just as well as it does to your physical health. It’s become far too easy to overspend. With proper financial planning, and a dedication to living within your means you can be prepared for the unexpected and it will not cause a total upheaval in your financial life for years to come.

Sensible Guides.