When you own money to creditors, and creditors is still calling to you and asking to pay

your obligation then you may be in  trouble. Some  people panic and borrow money from bank because they

own money to other creditors . This is what most people doing without even

thinking or exercises their right and obligation to creditors. What you have to do when you

have a problem with your budget is to find out what is your current budget your  expenses and your income

when reduce household expenses with your family, plan reductions in household expenses to

stay within your budget. You should cut food costs , plan less expensive meal menus use

leftovers and prepare snacks from scratch , adjust your buying habit only shop when you

need to , make a list and compare prices and brands use coupons, also consider other

shopping options food co-operatives, farmers markets or going to a farm and picking your

own this will save your few dollars, to cut your telephone bills, switch to a money savings

rate plan, eliminate unnecessary calls measured services charges for calls by length and

time of day , make fewer long distance calls, take advantage of lower evening and weekend

rates, cancel electronic phone features like call waiting and discontinue cell phones,

e-mail services and pagers, to cut your energy and fuel cost this is what you should do and

remember you should stick with your budget, turn off lights, TV and appliances when not in

use( you should turn off most appliance during night so it will save some energy), cut back

on the use of power hogs like hair dryers because it eat a lot of energy, lower the

thermostat on your hot water heater and furnace and turn up your air conditioner, and dress

accordingly, as well you should thing about washing and during only full loads of clothes

or dishes don’t use dishwasher as is eat a lot of power and energy. Eliminate unnecessary

car trips if you don’t have to go or you want to go somewhere else, just don’t go as it

only waste your time and car consumption and of course gas and one of the most important

fact that you should do is consult with your local consumer credit counseling services to

help you getting out of debt! What other items should I taking care of? You need to sell

what you don’t need or just very seldom use, Consider selling that extra vehicle or the

boat and trailer you rarely use. Look at your possessions to see which items could be sold

or traded without really changing the way you live.  If this possible ask landlord to lower

you monthly payment and ask if you can do a job for him such as cut lawmaker.  You should

also check with other financial resources such as life insurance, if you have a

supplemental life insurance then you can talk to your insurance agent to see whether you

can borrow against your policy as well talk to your union representative or employer to see

whether you are owed a refund on your pension fund contribution or from other company funds

as you know you may be able to borrow money from your 401k but don’t withdraw money from

your 401k as your will pay taxes and penalty on it!

Many people don’t know how to get around with finance and spending more than they earning and they dip their self into financial trouble, and have a lot of outstanding  balances that they don’t know how to pay off because interest rates is rock up and they have much more to give back than they borrow. People need to take care of their personal finances if they want to live debt free and here are few tips that they can follow up to became debt free
1. Prepare a Complete household budget – getting control of your personal finances is important to service unemployment. Use a household budget worksheet to see where you spend your money and where you can save. Do this as family project. Your budgeted expenses should include
- Fixed expenses – mortgage , rent, taxes, insurance, loans, installment payments credit card payments, child support and other fixed monthly payments and other financial obligation that are fixed each month such as gas and power bill payment or your internet and TVs bills, most of those bills is not change month to month so that why it call fixed expenses.
- Variable monthly expenses- food , gas, repairs, dues, prescriptions, recreation and utilities and child care
- Future expenses- income property tax and other outstanding debts
2. What your budget income should include?
• Income, Savings, Severance pay ( let say you have insurance than pay you severance each month for your emergency items) or some other financial aid from government, union strike assistance if your company is striking and your employer is paying you each week you should also add this as a budget, Unemployment compensation if you are not working and collecting unemployment, accrued vacation pay  if you have not take your vacation this year and you can change your vacation package for cash
• Refund from pension funds or if you collect social security so you should add those to your income budget
3. Third steps  is a List Assets
• Cash Value of insurance policies
• Prepaid burial or funeral policies
• Equity in your home the difference between the value of your home and the amount you owe on your home to banks
• Resale value of items you have fixed on tangible such as computer, domains, vehicles, board , RVs or other items that can be sale quick also stock, bonds, mutual funds and other financial securities that is trading on stock market can be liquid and count as assets
Next steps is to set priority  you should list all your expenses first and what is important for you and then make a complete list of creditors,  list should contain information such as name, address, and phone number of a contact person account number and total amount owed and payment schedule and amount and interest rates. If you have financial problems you should notify creditors that you have financial problem so creditor will working with you to find good resolution and help you get out of debt. They will lower your interest rates and make a better repayment option.

Knowing how banking system operate will keeping your banking costs down. Understand yourself as a banking customer helps you avoid unwanted fees. Unless you bounce a lot of checks, most bank fees aren’t going to put a big dent in your monthly budget, but adding all small fee association with banking will matters a lot.
Banks charge all kind of fees that are disclosed in our customer agreement, but when we opening a checking or saving account banks are not willing to help us understanding all fee for “legal purpose” . Banks is hiding them and telling to customers pointing that it is a legal question and customer should counsel with attorney and we all know how much it cost to discuss with attorney. 
Some fees you will have hard time to avoid, but when it comes to checking accounts, most consumers should be able to points the bullets. When we open a checking or saving account we should ask a banker for no fee account with include unlimited check writing, unlimited check transaction, no monthly fees, and no annual fees.”  All bankers get paid based at what product customer have” say Joe Snow, Vice President of Mc Financial Media ,Inc
There is much great accounting software online that you can purchase to keep your finance up to date, but the most and best software is yourself. You know exactly how much you should spend each month, what is your budget, your income and expenses. If you keep tracking of your checking expenses on separate piece of paper you will avoid paying any overcharges, and bounced check fees.
You should considering monitoring your checking and saving account online this will save you a lot of time, and sending consider about paying all bills electronically. In the old days when all mail went by the Postal Services, you had a few days to fund the account after writing the check. In today’s day we can all do electronically and save money on stamps and late fees.
If you don't frequently monitor your account balance online, then keep tabs with an old-fashioned check register. Banks still have them, and they may be more convenient for some people that are not computer savvy. Debit and ATM cards can make it tough to keep track of transactions. Save your receipts -- put them in your wallet or wherever you're sure to see them when you get home and can enter them into your register.
If none of this works for you, then sign up at the bank for overdraft protection. Overdraft protection work like a loan. If you don’t have money in your account and you have make a purchase at any place, you will be charge “overdraft fees” include any negative balance you have and each day that your account in negative you will be charge additional fees until you keep your account current. If banks see that you avoid paying overdraft fee it may close your checking account.   Avoiding ATM surcharges and fees is easy if you can estimate your cash needs well enough in advance that you have time to use your bank's ATM. If you have to pay a total of $2.50 to take $20 from an ATM, it's akin to paying 8 percent interest it a big waste.
You know what works best for you. Find a bank that suits your habits and meets your needs and you won't get caught in the fee trap.