| WHAT DO WE KNOW ABOUT OUR DEBT PATTERNS -- WHAT KINDS OF THINGS DO WE CHARGE_ | Review the last 1-6 months of expense records, including all of the charges on credit cards and other charge accounts. Identify any pattern of spending which involves charging the purchases. |
| WHAT IS OUR INCOME AND EXPENSE PICTURE_ | Record as accurately as you can all the income for the last 3-6 months. Also record as accurately as possible all expenses incurred by family or household members. Subtract the monthly expenses from monthly income to get a picture of your financial situation. |
|
HOW MUCH DO WE HAVE TO CUT SPENDING TO REDUCE OUR DEBT_ |
Calculate the total of monthly debt payments you are obligated to make. Compare with income and expense information. |
| WHAT CAN WE DO TO REDUCE SPENDING_ | Identify ways to reduce spending by eliminating unneccesary purchases, buying less expensive goods and services, participating in available services which reduce the cost of utilities, and other money saving options. Get all the family to agree on a plan for reducing spending and help everyone understand that everyone must participate to make the plan work. |
| HOW CAN WE KEEP FROM CHARGING MORE_ | Leave credit cards at home when going shopping, and if that is too hard to do, cut up the credit cards and send them back to the company so they will not be a temptation. |
|
WHEN ARE WE MOST TEMPTED TO CHARGE_ WHAT CAN WE DO TO AVOID THE TEMPTATION_ |
Think about the times that buying something on credit was very tempting. When you have identified those situations, also identify specific ways to avoid the temptation to buy on credit for each of those times. Remember that you will not be able to think of all of the possible circumstances that will be tempting, but your strategies may work for more that one situation |
Temptation can kill even the most savvy shopper. Here are some examples to consider.
