For people who earn a high salary or live on a substantial trust fund, spending more than $140 a day isn’t necessarily a financial problem. According to the annual Bureau of Labor Statistics’ Consumer Expenditure Survey, the average American spends $140 each day. If you are spending more than $140 on the average salary, you could benefit greatly from debt consolidation. When you consolidate your credit card debt, you often lower your monthly expenses. With the help of a trained credit counselor, you also learn the budgeting skills that make it possible to build wealth instead of just getting by. You may decide to enroll in a debt management plan that makes paying back your credit card debt simple and more affordable. According to an article by themotleyfool.com, it’s difficult to know where all your money goes every month due to credit cards. While credit cards make life more convenient, they can also create financial turmoil when you lose track of how much debt you owe. The consumer spending survey cited by themotleyfool.com showed Americans spend $140 on eight categories. It’s interesting to see how you compare. People use 65 percent of their money on food, housing and transportation, the survey showed. Talk to a credit counselor about how you can consolidate debt to free up more money for your daily living expenses by achieving a lower interest rate. Also, try tips for lowing expenses without majorly detracting from your current lifestyle.
Some ways to save money on housing include downsizing to a less expensive home or apartment. If you have a low credit score, consider living with relatives until you get out of debt. Your credit counselor will explain ways to improve your credit so you can buy a home or pass a credit check for a rental home.
While financial gurus such as Dave Ramsey suggest paying cash for a car, it may take several months or years to save up as much as you need. Improving your credit score helps you achieve a lower interest rate on a car loan. If you do decide to take out a loan, stick to a 3-year loan term so you minimize interest charges.
You can save money by joining a community garden or growing produce in your backyard. If you aren’t interested in gardening, keep a folder for coupons and restaurant deals. Also, start taking advantage of leftovers.
Ideally, the average American should put at least $14 of the $140 a day into a retirement savings account. If you aren’t saving 10 percent of your daily income for retirement, it’s a sign you could benefit from debt counseling. Experts say many Americans won’t retire because of the retirement savings shortfalls.
The average American also spends income on healthcare, entertaining, apparel and miscellaneous items. By having a good health insurance policy, you protect your finances from the unexpected illness or injury. While entertaining is fun, it’s a “want” and not a “need.” With debt counseling, you learn to prioritize your spending so you meet your financial obligations first before spending money on entertainment or vacations.
At Christian Credit Counselors, we negotiate with your creditors on your behalf to save you money on interest and late charges. In many cases, our clients pay off their debt 80 percent faster with a fast-track debt management plan.
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