The following is a guest post…
When you’ve run up on huge amount of credit card balances, then the foremost thing that you must do is budgeting. However, you need to take your kids as well as your spouse into confidence to help you stay within your monthly budget. This in turn will help you to curb impulsive purchases and increase your disposable income so as to make extra debt repayments, thereby getting rid of your financial obligations faster.
Tips to keep your family within your budget
Here are some budgeting tips to help you make your kids understand its importance and the benefits of staying out of debt:
- Provide them with substitutes – Many a times, parents like you have to reject or say no to a proposal from their kids. This is mainly required when you’re not in a financial position to afford things that children sometimes want. For instance, your child may be asking you to take him or her to an amusement park nearby but then your monthly income does not permit you to afford the tickets.So, you may offer your kid some sort of alternative like spending an entire day at a playground. This way your kid gets to have fun and you save money to repay your overwhelming credit card balances both at the same time.
- Ask them for reasons – You need to ask your children for reasons regarding things that they demand from you. Children have a similar psychology like that of the elders and that is they too want to get heard or be the center of attraction in a crowd. Therefore, rather than rejecting their demands outright, you should make a covert attempt and ask them to explain it you as to why do he or she needs a certain thing.If your kids come up with a proper justification, then say yes, or else give him or her the opportunity to hear about the same later. As a result of this strategy, you get to enjoy your child’s confidence that you value his or her opinions, while at the same time, you get to cut back on unnecessary costs.
- Give explanations in advance – You need to be proactive while trying to save money to make debt payments, especially when you are shopping at a departmental store with your kids. So, here in this case, you must tell your children about the very basic purpose of going to that grocery store and tell them about what your shopping list.Show them what you need to buy and what you won’t. However, you shouldn’t forget to offer your kids the alternative to let them buy candies with their money from there some time later.
Now, that you’ve got a handle about budgeting, it is important that you know some fundamentals of how to pay back credit cards without having to file for bankruptcy.
Credit card consolidation – A bankruptcy alternative
You can take advantage of credit card balance transfer in order to get your all balances consolidated into one. Basically, this is a kind of credit card debt consolidation where all the balances from your high interest credit cards are transferred to a low interest one.
The annual percentage rate on your new card will be low for a certain promotional period and so, you must be careful enough to try and repay all your dues. well within that time. Moreover, shop around and compare the rates as well as loan terms offered by the creditors before selecting for any one.
About the author: Guest Author Benjamin is a financial writer and loves sharing his knowledge on the various financial issues that has been plaguing the country. He is a regular contributor to various financial sites. In this article he has described the necessity of Budgeting and the positive aspect gained from it to lead a life with dignity.