As you start to consolidate debt, you should work to make sure that you build the basis for a new and better financial future.
This is pretty easy to do if you follow a few basic steps: •Keep all your financial records in one place.
Keeping your records organized can make it easier for you to keep track of your progress and to correct any problems or mistakes that may crop up.
Keep every scrap of financial information and every financial paper in one file and you will be able to bring your papers with you each time you meet with your counselor at your debt consolidation company.
•Budget well.
Even though consolidation will ensure that your bills are more affordable each month, you will still need to budget to ensure that you do not overspend.
A budget will also help ensure that you can easily afford your new, lower debt bills.
•Learn as much as you can.
Your counselor will do much more than consolidate debt - he or she can be a huge financial resource for you.
Use your meetings to learn as much about proper budgeting and good financial habits as you can so that you become better at managing your money.
•Start saving.
Once you consolidate debt, you will enjoy smaller monthly payments on your debts.
In the first few months, it is important to put away as much of the difference as possible into a savings account.
Ideally, try to save the equivalent of three paychecks in your savings account.
That way, you will easily be able to afford your debt payments even in an emergency.
Plus, if an emergency does occur, you will have money and so will not have to borrow.
•Keep track of your progress regularly.
Each month, note how much debt you have left.
Keeping track of your progress makes you feel great and helps ensure that you are progressing at a rate that is comfortable for you.