Tag Archives: Emergency Funds

To Avoid In A Debt Management Program (DMP), Start Cutting Back On Spending!

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Posted by Vedis the DMP Blogger on September 3, 2009 – 8:03 am
Filed under Debt Management Programs, Debt Management Tips

Cut Back On Spending To Avoid Debt Management ProgramSince I started credit card debt reduction in April 2007 and later enrolled in a free debt management program in October 2008, I have become used to cutting back on spending to save money for savings and emergency funds.

At first, it was very difficult for me to control every cent and dollar and stick to a budget. I was so used to spending money like water all these years, so logically speaking, I really needed time to change my spending habits.

Fortunately as time went by, the habit of limiting my spending seemed to develop and work automatically.

If you are in debt and hoping not to end up in a debt management program, then you have to start cutting back on your spending and sticking to a budget by trying a few practical changes that you can make everyday.

You’ll be amazed that you can actually cut your spending more than you expect by simply making some minor changes.

1. Pack Your Lunch Every Day. Having lunch at restaurants or food courts is definitely more expensive than bringing your own lunch.

By bringing your own lunch, you can save several dollars every day, which will add up over time.

2. Use Your Cell Phone During Off Peak Hours. Are you one of those people who spend a couple hundred dollars a month on phone charges? If so, lower your phone charges by making most of your calls during off peak times.

Check with your service and plan to find out when you have cheaper or unlimited calls.

3. Start Clipping the Sunday Newspaper Coupons. Stop throwing away your Sunday newspapers, what a waste! Instead, skim through the advertisements for coupons and sales.

Although the process of clipping coupons is tedious, the savings are often worth it due to the fact that more and more stores double or triple the amount of their coupons.

This technique can save you up to 20 or 30 dollars each time you head to the food store.

To be honest, I used to sneer at the idea of cutting back on spending that saved a dollar here and there. How could saving a dollar here and a dollar there help me pay off credit card debt?

Well, the truth is a dollar here and there really adds up in long run. Changing your spending habits does save you much money.

Pay Overdue Home Loan Installments & Utility Bills With Google AdSense Earnings

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Posted by Vedis the DMP Blogger on September 2, 2009 – 4:46 pm
Filed under Credit Card Debts, Income Streams, Utility Bills / Phone Bills

Pay Utility Bills With AdSense EarningsThis morning, I went to cash out Google AdSense earnings at a nearby Western Union agent. Guess how much I made from Google AdSense last month?

It’s almost $300! $300 X RM3.48 was more than RM1,000.

But my happiness was short-lived. After stepping out from the bank, I had to use the money to pay the overdue home loan installments and utility bills.

There went my Google AdSense earnings. :-(

It’s my wish that my Google AdSense money keeps increasing, from current $300 a month to $600 a month and then $900.

In March 2008, I mentioned in one of my blog posts that “how I wish I could make $108 monthly.” Well, I did it.

I am now making almost $300 a month from Google AdSense. I know it’s going to take some time to reach my goal of $900 a month, but I believe it’s possible.

If my Google AdSense earnings alone can’t reach $900 a month, I still have commissions from Chitika and Amazon.com to help hit $900 a month.

$900 is equal to more than RM3,000, you know. I am sooooo looking forward to receiving RM3,000 Google AdSense earnings every month to increase my savings cum emergency funds and speed up paying off my and hubby’s credit card debts.

$2,500 + $1,500 = Dual Income To Pay AKPK DMP Repayments, Car & Home Loan Installments

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Posted by Vedis the DMP Blogger on July 1, 2009 – 1:40 pm
Filed under AKPK Debt Management Plan, Auto Installment Loans, Debt Management Programs, Home Installment Loans, Income Streams

At last, hubby has started his work as a full time high school teacher with effect from 1st of July. My wish of him having a stable full time job has come true.

I must have God to thank for because He answered my prayer. :-)

With hubby having a full time job, this means there is RM1,500 to pay some bills, pay off some personal debts from close friends and save for emergency funds.

Hubby’s current pay is only $1,500 per month because he is only given 15 classes per week to teach. There aren’t enough classes for the time being because it’s middle of the year now.

Although hubby’s salary is RM1,500, he is still considered a full time teacher. You know, he will be entitled to a month’s bonus!

If hubby is sure that he wants to be a discipline master after 2 months, he will have extra RM400.

Next year, it’s expected that hubby’s salary is between RM2,000 and RM2,400.

Let’s look at my current income from my niche blogs and tuition classes. I think they bring roughly RM2,500 per month.

Both of our income adds up to RM4,000! Wow, …

With RM4,000, we can pay my AKPK RM320, hubby’s AKPK DMP RM360, car loan installment RM820, home loan and bank overdraft interest fee charge RM520 and utility bills RM250.

Extra money will then be used for daily expenses and saved for emergency funds.

If You Are In A Debt Management Program, Your Credit Score Will Be Badly Damaged

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Posted by Vedis the DMP Blogger on July 1, 2009 – 6:11 am
Filed under Debt Management Programs

Have you been told that your credit score will be badly damaged if you are in a debt management program? Well, I was told many many times about it and was advised to DIY debt management myself without the help of credit counseling agency so that my credit score wouldn’t get hurt.

At that time when I was thinking about getting out of credit card debt with a free debt management program, I was already a few months behind my monthly payments and wasn’t able to pay the minimum payments.

Not only were there non-stop phone calls and letters from banks and creditors, I started getting phone calls and visits from third party collection agencies!

If you had been in my shoes, would you have thought about credit score or cared if a a debt management program would damage your credit score?

I didn’t care. What I wanted to do at that time was to get into a shelter for a temporary relief; a credit counseling and debt management agency for a temporary financial relief.

I needed to enroll in a debt management program that could consolidate my multiple credit card payments into one payment and stop all the harassing phone calls, warning letters, third party collection agencies, exorbitant late payment fees and over-limit charges.

Since I was put in the free debt management program in October 2008, I have been able to heave a relief. Paying ONE smaller monthly payment to ONE credit counseling agency on ONE due date enables me to save more money for the emergency funds and pay my credit card debt without much stress.

It’s true that if you have loads of debt but are current on all your payments, your credit score may drop when you enter a debt management plan.

But if you have several late payments or are currently way behind on any credit payments, chances are a debt management repayment plan actually improve your score.

Enrolling in a debt management program is a long term decision, and the fact is repaying your debts is the best thing for your credit score.

Read Others’ Experiences Using Non-Profit Debt Management Plans – Part 2

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Posted by Vedis the DMP Blogger on June 23, 2009 – 3:50 am
Filed under Credit Counselors, Debt Management Programs

This is the continuance post of Read Others’ Experiences Using Debt Management Programs – Part 1.

Once it is determined that you are eligible for a debt management program, your credit counselor will negotiate with your creditors for lower payments and interest rates.

Instead of making multiple credit card payments to different banks and creditors on various due date, a debt repayment plan enables you to make ONE payment to One agency on ONE date.

You start making payment to the credit counseling agency’s collection account and the monthly payment will then be distributed out to your creditors.

Take the late payments or insufficient funds seriously! They can cause your debt management program to become null and void, so be in time or on time when it comes to making your monthly repayment.

While in the DMP, you can’t apply for any new credit cards or loans. I have been living without the convenience of a credit card for more than 7 months already.

I have been told by my counselor that I can make extra payments to some of the large credit card balances while I am in the program. Just make sure that I have some emergency funds before I go to settle a large credit card balance.

If your debt is up to your ears and you are looking for debt relief options to bring relief, a debt management program can be just what you need.

The Federal Trade Commission (FTC) has very useful information about using debt management programs (DMPs) effectively and about how to know if the program is legitimate.