Be Proactive
Budget
Keep track of expenses. Knowing where your money is going is vital to making changes in spending habits. Compare what you actually spend to what you think you spend and use the comparison as your starting point.
Set Goals
Set aside money for both long- and short-term goals. It’s easy to lose focus until you set goals, such as paying off debt, buying a home, retiring, etc. Your actions should move you closer to established goals.
Rainy Day" Fund
Saving three months’ take-home pay in a savings or money market account provides an important cushion in case of a financial emergency. Usually that amount cannot be set aside overnight, so start with a small amount and let it grow. You may not need it for years to come, but any amount set aside will help.
Alternatives
Communication
If you are currently experiencing financial difficulties, communicate openly with your creditors. When your monthly payment is not received, the creditor has no idea of the reason why. If you experience a financial hardship, contact your creditors, explain the situation, propose an alternative payment plan and follow-up any agreements in writing. Creditors want to work with you; thus, it is important to communicate with them before an account becomes severely past due so reasonable arrangements can be agreed upon.
