Credit Crisis

Credit crisis: What can you do?

Signs you’re headed for crisis:

	You can’t pay your credit card bills each month
	You take cash advances just to make it through the day or week
	You don’t know how much you owe.

If you find yourself in a credit crisis, deal with it immediately:

	Consolidate. Combine all the pending bills into one amount and put regular payment toward it.
	Spend within your means. Make sure your spending habits and lifestyle keep in line with your personal financial situation. If you can figure out how you got into a credit crisis, it’ll be easier to get out and stay out.
	Stick to your plan. Once you’ve identified a plan for recovery, stick to it. Use just one credit card and use it wisely

The “B” Word: Budgeting

Document your income and all of your expenses, then set goals to ensure that the two are inline so you can still live comfortably, do the things you like, pay your bills, and save a little each month.

A budget is handy if you make most of your purchases on a credit card. Compare your monthly bill with your monthly budget to assess whether you’re staying on track. A budget is useless if you don’t ever check how closely you are sticking to it.

Beyond big purchases, keep a close eye on your petty expenses.