Personal Finance – How to Manage Your Finances and Eliminate Credit Card Debt

Personal Finance – How to Manage Your Finances and Eliminate Credit Card Debt

Personal finance is the basic building block of an individual or a family. If required you might need to take a diary and a pen and make a budget or financial planning, else a computer savvy can always make use of the

Excel or the different personal finance management software available on internet. Most of this software is inexpensive and easily available, so any one can use it. Now, using the software is not really our concern, what we want to concentrate in how to manage the finance and eliminate all debts.

Plan out your budget for the year, the key areas of income and expenditure, and chalk out a plan for loan repayment. Most of us have taken a loan for one or the other purpose -home loan, education loan, personal loan and it need to be carefully planned and repaid. It is possible quite a few of us might not be really doing it so far, it might not have been so necessary, but today it is the need of the hour. The recession has defaced the economy and unless we take corrective measures at an individual level, not much can be changed. The US government came up with a bold plan on reviving the economy and introduced the federal stimulus package to recover the huge financial loss.

All this effort to bring back the economy in shape would not really stabilize until each one of us start managing our personal finance. We don’t want to end up in a situation where the debt kept mounting and people are forced to declare bankrupt. The problem would not just affect the borrowers but the government will have a tough time taking care of millions of them. With a wiser approach towards spending and saving, we can make a lot of difference. Besides, you now have a chance to settle your unsecured debt amount with a waiver of up to 60 percent. It’s recommended to refer to the debt relief agencies that have experts to guide you through debt negotiation, debt consolidation and eliminate credit card debt.

See also  How To Stay On Top Of Your Insurance Learning how to manage your insurance needs is important. Having quality insurance will ensure that when the unexpected happens you will be covered. There are so many different types of insurance out there and so many different ways to handle your insurance needs. Here we've complied some tips to help you. Auto Insurance When purchasing insurance, whether it be for your home, your automobile, or even on a pet, try to see if the company offers any sort of bundling discount. A lot of times if you have several different policies, say renter's insurance and auto insurance, you will get discounted on both. For apartment dwellers usually renter's insurance is mandatory, so asking this question is tantamount to guaranteed savings. By way of conclusion, bundle and save money! Car Insurance Much like car insurance or health insurance, having a higher deductible can save you money on your premium. The downside to all of this, is that if you have a small claim to make, you will most likely have to pay for the entire repair out of your own pocket. Cheap Insurance In order to get cheap insurance rates it is best to buy insurance online. This reduces the cost of the insurance because most companies will not need to add overhead associated to the automation process of signing up for the insurance. Insurance rates taken online typically drop by five to ten percent. Home Insurance Look into multiple insurance policy discounts. When you bundle your insurance contracts with one company, you will often get a discount of 10% or more. If you currently have home insurance with a company that you are satisfied with, contact them and get a quote for auto or life insurance. You may find that you will get a discount on every policy. Insurance Car Health insurance, car insurance, renter's insurance, pet insurance, travel insurance. All of those things are necessary and they insure one's peace of mind. It is easy to think that paying a minimal monthly amount is ridiculous, but when something catastrophic happens, insurance saves the day. Insurance will save one's car, another driver's car, items in one's apartment, cover the bills for a sick pet, reimburse one for a trip that got cancelled because of bad weather, or pay medical bills. Purchasing insurance is necessary and it should factor into everyone's budget. One hundred dollars every month is far easier to handle than one hundred thousand because something unexpected happened. Insurance Companies When purchasing insurance, make sure you buy it over the internet. Most insurance companies offer discounts for those who purchase their coverage over the internet rather than in person or over the phone. Some offer discounts between 5-15%. It may not seem like a lot at first, but it adds up over time. Insurance Policy Repeat after me: you must always read the fine print when signing an insurance policy. In an insurance transaction, you typically will have to sign a large number of papers containing thousands of words in tiny print. You need to read - and understand - these forms before you sign any insurance policy. Do not allow the agent to blow through the forms and simply sign at the several places marked with an X. If you don't understand the fine print, you will likely regret your purchase decision down the line. Motorcycle Insurance Save money on insurance by purchasing bundled policies. For example, you may be able to insure both a car and motorcycle for a discounted fixed rate. You will be able to find bundles that cover your vehicles and your home. Before you buy anything, though, be sure that you actually need it. Vehicle Insurance If you don't have health insurance coverage, you may want to add medical coverage to your vehicle insurance policy. Auto accidents are often a major cause of catastrophic medical bills and the medical coverage will cover everyone in the car, regardless of who the driver at fault it. This can protect your assets from being party to a lawsuit and can save you a lot of bills in the even an accident occurs. Insurance coverage can be a minefield of unfamiliar terms, fine print, discounts, coverage levels and so on. There's no way we can cover everything you need to know here but hopefully this has been a good starter to get you on your way. Research your particular needs and make sure that you stay covered!