Meeting With A Credit / Finance Counselor

Posted on: August 31, 2008 by Matt

In addition to discussing my student loans in collection we also looked at other aspects of my finances. The advise that I was given can be summed up as follows:

Keep A Budget: I try to keep a budget running in an Excel spreadsheet. I keep track of all income and categorize expenses / savings. At the end of the month I have $0 left unallocated.
Increase Income And Reduce Expenses: I have already been trying to cut back on expenses but had not been actively trying to increase my income. I had considered trying to gather a couple of extra consulting jobs in the area but had not moved forward yet. We will see how this goes.

Reduce Debt And Increase Savings: I think that having debt sucks but also am not sure that the extremes of the Dave Ramsey plan will get me to where I want to be. The suggestion I was given was to actively repay debt and increase savings at the same time. Make on time payments to my creditors and ensure that I have them documented while stashing away some cash every month.
Focus On The Good Things: I wanted to focus in on the loans stuck in collection and find a solution. After reviewing my credit report the counselor noted that I have a lot of good stuff on there too and that he has yet to see a worst case scenario yet (in 17 years in the field). Most people tend to focus on the negative aspects of their finances which leaves you feeling down and out rather than on the rise. Focusing on the positive steps you are taking seems to increase your chance of success.