Housing, transportation and food are the three biggest expenses in your budget if you are a typical American. Some people use their credit cards to pay for groceries, especially if they are living in a home they can’t afford or driving a car that’s too expensive. With debt consolidation, you can dramatically reduce the money you owe to your creditors. In some cases, freeing up that extra money that used to go to high interest and late charges provides enough to adequately cover the so-called “big three expenses.” According to a recent story by The Motley Fool, whether or not you can afford your home, food or car indicates whether you are living comfortably within your means. A recently released report called the Consumer Expenditures Survey showed Americans spend 64 percent of their money on food, transportation and housing. It’s enlightening to see how you compare to the average person. By signing up for a Debt Management Plan through an accredited Christian credit counseling organization, you take back the control of your budget.
Housing Expenses
According to the study, housing covers everything from your mortgage or rent, electric bill, water bill and furniture. The Bureau of Labor Statistics reports people making between $40,000 and $50,000 spend $14,827 on housing compared to $16,972 for people earning between $50,000 and $70,000 and $18,433 for people earning between $70,000 and $80,000. Experts suggest buying a home or renting an apartment based on what you “need” rather than what you can afford based on salary. After getting out of credit debt with the help of credit counseling, you can afford to upgrade to a nicer home or apartment.
Transportation Costs
Your vehicle payments, oil changes, gasoline, toll fees, bus or plane fares make up your transportation costs. People earning between $40,000 and $50,000 spend $7,861 on transportation compared to $9,666 for people making between $50,000 and $70,000 and $10,845 for those making between $70,000 and $80,000. Experts suggest thinking about transportation when choosing a place to live. If possible, cut down on your commute by working at home or bicycling to your job. With a Debt Management Plan, you get out of debt quickly so you have more money for a car payment.
Food Expenses
The food budget category includes groceries for meals cooked at home as well as eating out expenses. People earning between $50,000 and $70,000 spend $6,733 on food compared to $7,762 for those earning between $70,000 and $80,000. People on the lower end of the income range often receive public assistance for food. It is frustrating to run out of money for food even though you are gainfully employed. Receiving credit counseling and consolidating debt turns things around.
At Christian Credit Counselors, we help people enroll in a Debt Management Plan that gives them total peace of mind. Our Automatic Pay System can boost your credit rating and make it easy to pay what you owe each month.
Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.
