Thursday, March 8^th at 1:00 PM and 7:00 PM CST.

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7:00 https://www1.gotomeeting.com/register/559173121

To set up a monthly budget, you’ll need to start out by determining all sources of income.  I recommend using your net income, as this will paint a much clearer picture of what you actually have to put towards monthly expenses.  Next, you will want to list all of your fixed expenses.  Fixed expenses include things like: mortgage or rent, car payments, student loans, utilities, etc.  Flexible expenses will also need to be listed, but unlike fixed expenses, flexible expenses are bills that can be cut-back on or possibly even eliminated altogether.  These expenses usually include: recreation or entertainment, cable, clothing, dining out, etc.  Lastly, you’ll most likely have some periodic expenses (bills that don’t come in every month) that you’ll also want to budget in: auto insurance, taxes, gift giving, etc.

The best way to get a picture of where your money is going is to track your spending for one month.  You can write down your expenditures in a notebook, save receipts, or even get a rundown of your spending through your bank if you’re a devoted debit card user.  This one month tracking can be a real eye-opener.  To actually view where your money is going is the beginning of your monthly spending plan.

Budget together!  Bills and regular monthly budgeting should not be one person’s responsibility.  Too often I see this, and it should never be this way since your financial situation is a family issue.  Teenagers should definitely be included in the process so that they can learn how to budget and track finances successfully.  As a family you can discuss cut-backs, better spending habits, and any goals that you’d like to set.  Getting everyone on the same page financially is not only important for a healthier overall lifestyle, but it also makes any of those necessary sacrifices easier when everyone’s working together.

Here are some tips to help you succeed with saving money and setting up your monthly spending plan:

• Split up due dates – the 1^st through the 15^th and the 16^th through the 31^st.  Creditors can move their due dates.
• Try to eliminate certain bills altogether – it’s one less bill coming in each month!
• Car pool, walk, bike, or use public transportation.  This doesn’t have to be every day!
• Spend wisely – thrift stores, garage sales, coupon clipping, buy in bulk, etc.  Determine your needs versus your wants.
• Determine budgeting leaks and fix them – dining out, coffee, clothing, entertainment, etc.
• Save money – use a family change jar, round up when balancing your checking account, get a part-time job, etc.
• Talk with your utility company about getting on a monthly average billing plan.
• Chip away at your debt load and try not to use credit cards.
• Make sure that you’re living within your means so that you don’t continue to fall into debt.
• Understand that building a monthly spending plan and sticking to it is your road map to financial freedom.

By Jeral Croaker, CPFC®

Certified Credit Counselor

There are a few key provisions to this settlement which show how people may be affected.  $17 billion in principal reductions by the services are required through loan modifications nationwide.  For homeowners whose payments are current, but the principal balance is higher than the value of the home, there may be opportunities to refinance at today’s historically low interest rates.  $1.5 billion will be distributed to around 750,000 borrowers who lost their home to foreclosure.  Each participating state will also receive funding for consumer protection and state foreclosure protection efforts.  National banks will even be required to report to and outside monitor regularly, who will then report to each state’s attorney general.

This settlement process is definitely in the beginning stages, and if you do qualify, you will be receiving a letter in the next 6 to 9 months stating how you qualify for help.  If you would like to contact your specific lender or mortgage servicer for more information on how this settlement may affect you, the 5 lenders’ contact information is listed:

Ally/GMAC: 800-766-4622

Bank of America: 877-488-7814

Citi: 866-272-4749

JPMorgan Chase: 866-372-6901

Wells Fargo: 800-288-3212

For any additional information, I would encourage you to contact your lender or servicer, or visit www.nationalmortgagesettlement.com.  If you were foreclosed on in the last 4 years, you think you may be eligible to receive a cash settlement, and want to ensure you can be located at your new address, contact your state’s attorney general, whose information can be found at http://www.nationalmortgagesettlement.com/states.

By Nathan Aakre. CPFC®

Certified Credit Counselor

Donovan, Shaun (Secretary, U.S. Department of Housing and Urban Development). “Federal Government and State Attorneys General Reach $25 Billion Agreement with Five Largest Mortgage Servicers to Address Mortgage Loan Servicing and Foreclosure Abuses”. U.S. Department of Housing and Urban Development. www.hud.gov. 9 Feb. 2012. Web.  9 Feb. 2012.

-Tara in CA

-Abby, North Dakota

-Sherry

-J from Texas

This webinar will be held on Tuesday, February 21 at 1:00 PM and 7:00 PM (CST).  Our monthly webinars are 28 minutes in length and are free of charge.  We’ve partnered with professionals all over the country to bring you relevant, useful information that will help you in achieving your goal of becoming debt-free.  Our webinars are open to the public; if you or someone you know are interested in attending, please register here:

Registration Web Link: https://www1.gotomeeting.com/register/350259609 – 7pm Webinar

Registration Web Link: https://www1.gotomeeting.com/register/771423688 – 1pm Webinar

The good news finally comes from the credit card debt front.  Average credit card debt going down, to me, says that Americans made a collectively assertive effort last year to make significant progress in paying down those pesky credit card balances.  With a struggling economy, that trend is to be expected.  Now, as we see more and more signs that the economy is improving, we may start to see credit card debt start to increase again as people regain their confidence in the American economy.  Again, my challenge to you this year would be to ignore that trend no matter what the economic future holds.  Learn from past experiences when it comes to credit card debt and implement a lifestyle that is free from credit cards.

The statistic that showed the average auto debt of $15,504 was rather alarming to me.  That amount of debt would normally constitute auto payments in the $300 to $400 per month range.  My wife and I just paid off our vehicle loan (of $158/month) this past summer and let me encourage you that life without car payments is such a relief.  Never again will we fall into the temptation that says it is normal to have a car payment.  The $158 that we have each month is a significant amount of money that should not have to be designated for a vehicle payment unless absolutely necessary.  The next time you dream of buying a different vehicle simply because you are tired of the one you have, imagine what even $158 could buy you in the fruit and vegetable aisle at the grocery store every month and be thankful for the car you have.

By Nathan Aakre, CPFC®

Certified Credit Counselor

Ellis, Blake (Money.CNN.com).  “Credit Card Debt Drops 11%”.  CNN Money. Money.CNN.com, 17 Jan. 2012.  Web.  17 Jan. 2012.