Help With Money Problems

No matter how your money problems came about, there is no quick fix short of a large windfall. Even that is no substitute for good money management, which is a life skill that will help you through good times and bad. Ignore the claims of companies that say they can "erase your bad credit." You need to take charge of your financial life, which means making significant changes in the way you spend and save money.

Review Your Credit Report

You need to know where you stand financially before you can begin to fix your financial problems. Start by taking an analytical look at each of your credit reports from the three major credit bureaus: Equifax, Experian and TransUnion. Note any discrepancies between the reports from the three bureaus and dispute any errors you find on your credit report by writing a letter to the creditor and then sending a copy of the letter to the credit bureau.

Create a Personal Balance Sheet

Create a personal balance sheet by listing all of your debts and all of your assets. Subtract the debts from your assets to determine your net worth. Free templates and other money management tools are available at Mint.com. A good understanding of your overall financial picture will help you to know where to begin solving your financial problems.

Create a Budget

Track your expenses for at least one month, keeping a detailed log of every expenditure you make. Often, seeing where your money is going will open your eyes to how you can reduce expenses. Prioritize your bills and pay them as soon as you can in the month, paying the most important bills first. Do not wait until a few days before the due date to pay each bill. Force yourself to save, even if it is a dollar a week, but increase your savings with the goal of saving 10 percent of everything that comes in.

Get Help

If you need help, the Federal Trade Commission (FTC) offers advice on selecting credit counselors and debt management plans. The FTC suggests that you ask credit counselors what services they offer, ask to see their formal written agreement and ask if they are licensed in your state. Debt management plans are not the same as credit counseling and they are not right for everyone. Debt management plans take an active role in your finances. You deposit money monthly with the organization and it disburses your funds, paying your unsecured debts. With your approval, the organization negotiates with your creditors to lower interest rates and remove fees. Always check your monthly statements. Completion of the plan may take 48 months or longer.