Home Budget - You're headed for trouble if ...
Posted at 1:25 PM
you spend more than half your take home pay on credit bills and loans. How long has it been since you sat down and added up your monthly payments to see how they compare to your monthly take home pay? When I worked outside the home, I got paid every two weeks so bills got paid every two weeks and I never seemed to have a handle on how much overall I was paying out on credit cards, student loans and my car loan... let alone my mortgage at the time. Now, I don't have a mortgage or car loan but my credit card bills can still get out of hand.
I saw a sign outside a bank offering heating loans. Granted, I live in Maine and with winter coming on... people are already talking about how to pay for oil this winter. The thought that banks are now offering heating loans around 6% looks mighty attractive because you wouldn't want to get strapped mid winter putting heating oil payments on a credit card with an APR of 12% or higher. Some people got in early to lock in on a heating oil price but last winter it cost some people up to a thousand dollars just to fill the tank.
Now what does heating oil have to do with being in trouble with credit? Everything! Do the math. See what percentage of your take home pay is going to loans and credit cards now. If you are spending between 40-50% of your take home pay on loans, you are pushing the limit. Once heating oil season comes OR another big ticket problem (car repairs, plumbing, etc) you will not be in a position to handle the new bills.
There is a home budget software called the Debt Cruncher that comes with Leo Quinn's ebook "How To Take Back Your Paycheck" that gives you the skinny on the fastest route to paying off credit cards and loans. It's always a good idea to get a handle on debt but somehow when it's nearing fall and heating oil prices plus Christmas coming... now is a great time to head money problems off at the pass. :-)
Tammy
WAHM Connections
I saw a sign outside a bank offering heating loans. Granted, I live in Maine and with winter coming on... people are already talking about how to pay for oil this winter. The thought that banks are now offering heating loans around 6% looks mighty attractive because you wouldn't want to get strapped mid winter putting heating oil payments on a credit card with an APR of 12% or higher. Some people got in early to lock in on a heating oil price but last winter it cost some people up to a thousand dollars just to fill the tank.
Now what does heating oil have to do with being in trouble with credit? Everything! Do the math. See what percentage of your take home pay is going to loans and credit cards now. If you are spending between 40-50% of your take home pay on loans, you are pushing the limit. Once heating oil season comes OR another big ticket problem (car repairs, plumbing, etc) you will not be in a position to handle the new bills.
There is a home budget software called the Debt Cruncher that comes with Leo Quinn's ebook "How To Take Back Your Paycheck" that gives you the skinny on the fastest route to paying off credit cards and loans. It's always a good idea to get a handle on debt but somehow when it's nearing fall and heating oil prices plus Christmas coming... now is a great time to head money problems off at the pass. :-)
Tammy
WAHM Connections
