A divorce is a costly process both in terms of time and money. Apart from legal fees, custody and maintenance issues are very demanding and can necessitate major changes in the way you manage your expenses.

Combined with the emotional distress typical of major upheavals, a divorce can leave an individual staring at a mountain of bills with few ways of getting out of debt. This can be further compounded if the couple shared finances, such as a joint credit card account. To explore ways to manage finances during a divorce, click here.

With consumer debts increasing at alarming levels, many Americans are turning towards credit counseling agencies looking for solutions to get out of debt. Many people are contemplating enrolling in a debt management plan offered by these agencies to help them manage their debts. A debt management plan will help you pay off your debts in an organized manner in about 3 to 5 years. It typically consolidates your unsecured debts into one payment and offers many advantages like possible reduction in late fees and interest rates.

However it is essential to analyze the services and ensure that the credit counseling agency is certified before you sign up with their debt management plan. To learn about the things to look for in a credit counseling agency click here.

It’s like being in a dream and waking up in a nightmare!!

January hits, and it’s Bills!  Bills!  Bills!  By now, the tree has been taken down and disposed of, and for the majority of the people, the lights get placed sloppily in a box with ornaments and left over wrapping paper, and you’re thinking, “Why?!  Why’d I do it?” 

Let’s think about it.  The holiday season is special, maybe even magical, but is it really necessary to max out your cards to buy everyone and their mama a present?  Probably not.

This year is a wash.  The presents have been bought, and in a month or so, you’ll get your chance to really assess the damage.  But what’s done is done.  Let’s now focus on the future...

One possibility is to go ahead and hedge your losses for next year.  Before you start going crazy, buying presents next year, why don’t you talk to your friends and family, and agree that instead of buying each other something, you’ll agree to cook for each other, maybe give them a massage, the recipe to their favorite dish.  If you guys agree not to buy presents, it’s just like receiving cash in hand, because you guys will be saving so much money!

Also, get a control of your finances.  If you’re having a hard time making the minimum payments on your credit cards because of all the gifts you bought at Christmas, maybe you could think about contacting your creditors and asking for a hardship program; or better yet, call a well-respected Credit Counseling agency.  Your accounts would be closed, and your payments lowered, so you wouldn’t be able to put your Christmas presents on credit, even if you wanted to!  Think about this:  instead of paying for the holidays the whole next year after, pre-pay your gifts!  If you get on a Debt Management Plan and save $100/month, put that into a savings account, and Viola! you have $1200 for Holiday season ’09…

Just remember, planning for the future is a lot cheaper than paying for the past…

Use a monthly budget not just to count expenses; it can also be a tool to chart expenses. Leaning how to control spending with a household budget, will give you freedom to set goals for the future. With almost twenty percent of Americans are in homes with mortgage cost higher than the value of the home. Keeping cost down may be at the top of each household budget.

There are many ways to cut back spending and cost; one is a Debt Management Program (DMP). The benefit to a DMP in a budget is the control it gives to the household over all accounts that are on it.

Use a Debt Management Program for locking in those monthly payments of all account you place on the program to one set rate on one day each month. Taking control of your money and not letting your money control you. 

Consumer Education Services Inc., a non-profit organization located at Raleigh, NC, recently launched http://www.controldebt.org website, to help customers consolidate their debts.

The website http://www.controldebt.org highlights the reasons for debt and provides solutions to manage debt during tough times i.e. a job loss, divorce, or illness, which could be sudden and severe. The website also examines delinquency, credit card debt, personal loan and habits such as gambling and shopping for their effect on an individual's finances.

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