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7000 Peters Creek Rd., Roanoke, Virginia
1-866-260-5994 |
CCCS of Southwest Virginia |
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At the beginning of this year, I began a career as a Realtor.
Real estate sales is 100% commission and my income has dropped considerably but
has the potential to increase dramatically. This month is the first month I have
had trouble making my minimum payments. I have taken a second job to help out my
financial situation. My question is do I need to pursue your assistance?
-
Michael
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Dear Michael,
Money
Management International serves two purposes. We work to help consumers prevent
debt problems from ever occurring and we’re there to help when it does. You have
come to us at the right time.
Learning how to deal with an unsteady
income is imperative to your future financial success. I recommend taking one of
our online educational courses to develop a solid spending plan. If you still
have trouble making your payments after adjusting your spending accordingly, you
can meet with a certified credit counselor to discuss your debt repayment
options.
Good Luck with your new adventure,
Susan
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I am a recent college graduate. I have just landed my first job,
and I have a few financial concerns. I want to know what percent of my salary I
should spend on rent, entertainment, etc. I have credit card balances and
student loans to pay back.
- D. Long
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Dear D. Long,
There
are some general rules of thumb. For example, it’s a pretty accepted fact that
if more than 20 percent of your take home pay is going towards debt payments
(not including housing), you’re probably in over your head.
I can also
tell you that the average person spends 20-35% on housing and 15-30% on food.
Not very helpful, is it?
The reason the huge range is because what you
“should” spend depends entirely on what is important in your life. Each person’s
priorities are different and so is each person’s spending plan. A family of six
will have a drastically different spending plan than a single recent college
grad.
The MMI website offers an online educational course designed to
help you develop your own personal spending plan. You can find it at
http://www.moneychoices.com/.
Good Luck and congratulations on your
recent graduation,
Susan
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I have been unemployed since December of 2000. Prior to that I
held a position paying a substantial amount of money. Because I have never been
unemployed before, my wife and I are finding it very difficult to keep our heads
above water. I have enrolled into college so I can obtain a higher level of
employment but that does not take care of the immediate need to pay my
creditors. We have tried to explain to them our situation but for some reason
the calls just keep on coming. We have quite a lot of debt now and we just want
to start from scratch. Bankruptcy is not an option because we really need a
house with two small children running around.
- Lee
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There are several options
for someone in your situation. First, you should meet with a certified credit
counselor who may be able to assist you in negotiating with your creditors. You
may want also want to consider applying for unemployment benefits or taking an
interim job to earn some income until the perfect thing comes along. Is it
possible for your spouse to enter the workforce?
You should also know
that filing for bankruptcy does not mean that you automatically lose your home.
Consult with an attorney for additional details. Just remember, bankruptcy
should always be the last resort.
Best
wishes,
Susan
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My husband was self-employed for several months but has lost the
equipment he was working with. We now have gone from $1600 a week to $650 a
week. But our bills are still the same and include medical bills from one of our
employees that was injured. The agencies that we owe are calling everyday and
will not allow us to delay payment or lower the amount due. Is there anything
that can be done? We want to pay our bills, but we can't at the rate things are
now.
- Nancy
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Dear Nancy,
When
your income decreases, but the bills don’t, you have to make a plan. Start with
prioritizing. Separate needs from wants and eliminate unnecessary
spending.
Remember that not all debts affect your family equally.
Housing, utilities, insurance, taxes, food, health care, and vehicle payments
are some standard "must pay" expenses. Ask for reduced payments on your
employee's medical bills.
Check your resources. Is it cost efficient for
you to go to work? Was there a replacement insurance policy on the lost
equipment? Does your life insurance policy have cash value you can borrow
against? What can you sell to increase cash flow?
Understandably, your
creditors want to be paid. You can call a MMI counselor at 800-762-2271 to see
if our payment arrangements will work in your plan.
Best wishes to you
and your husband,
Susan |
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My wife and I have worked ourselves into a debt of about $12,000.
We have a combined income of about $85,000. We seem to have trouble getting
caught up. Any suggestions or guidelines? My income has changed over the past 2
years. I was earning about $120,000, and we can't seem to adjust to the lower
earnings.
- Will
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Dear Will,
It
sounds like you did not adjust your spending to match new your income. This is
easy to do since the “extras” you were used to may have become so commonplace
that now they feel like necessities.
It is past time to sit down with
your spouse and try to set priorities. Developing a new, realistic spending plan
doesn’t have to be an unpleasant experience. It is all about perspective. I
truly believe that people underestimate the wonderful feeling of having solid
financial footing.
Susan
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CCCS, A Division of Money Management International
Regional Headquarters - 7000 Peters Creek Rd., Roanoke, Virginia
Corporate Address - 9009 West Loop South, Seventh Floor, Houston, TX 77096 |
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