Coping With Reduced Income
0 likes388 views
This document discusses how to cope with reduced income. It provides strategies for prioritizing bills to pay first such as housing, utilities, food, and medical care. It recommends contacting creditors to negotiate more affordable payment plans if bills cannot be paid. Additional tips include making a spending plan, cutting flexible expenses like entertainment and dining out, and helping children cope by openly communicating about the family's financial situation.
Coping With Reduced Income
- 1. CopingwithReduced Income25/02/20101UAPB Cooperative Extension - Family Resource Management Program
- 2. Whyisthis important?When income is reduced:Research shows that many families wait three to six months before cutting their expenses.During this period much of the damage may be irreversible.It is important to take immediate action and be willing to make some hard decisions.25/02/20102UAPB Cooperative Extension - Family Resource Management Program
- 3. In this workshop we willdiscuss..How to decidewhich bills to pay first How to handlebills you can’t payStrategies for spending lessReducing stressHelpingchildrencope25/02/20103UAPB Cooperative Extension - Family Resource Management Program
- 4. Deciding which bills to pay first25/02/2010UAPB Cooperative Extension - Family Resource Management Program4
- 5. Size up your situationList every bill and the payment amount.What will affect your family's health and security most?Whatwill you lose if the bill is not paid?Do you owe child support, back taxes, or student loans? Do you have outstanding balances on credit or charge card accounts? 25/02/20105UAPB Cooperative Extension - Family Resource Management Program
- 6. Set PrioritiesHousingUtilitiesFoodTransportationMedical Care25/02/20106UAPB Cooperative Extension - Family Resource Management Program
- 7. Handling bills you can’t pay by talking to creditors25/02/2010UAPB Cooperative Extension - Family Resource Management Program7
- 8. Where to begin..Determine how much money you have to pay the debtsyouowe.Contact yourcreditors and explainyour situation. Negotiaterealistic plansReducedmonthlypayments; Reduce or drop late charges; Refinance loanat a lowerinterest rate; Payinterestonly; Deferpayments; Request permission to sell item.25/02/20108UAPB Cooperative Extension - Family Resource Management Program
- 9. Collection CallsKeep a recordRemaincalmDispute debts in writingDo not panic about threats to ruinyourcredit ratingStop persistent calls 25/02/20109UAPB Cooperative Extension - Family Resource Management Program
- 10. Strategies for spending less25/02/2010UAPB Cooperative Extension - Family Resource Management Program10
- 11. CuttingExpensesMake a spending planCut flexible spendingFoodUtilitiesPhoneCable or satellite TVHouseholdupkeepTransportation and vehicle upkeepClothing and personal costsEducation and recreationChild care, elder careBefore buying ask yourself..Do I already own one or know someone else who does?Can I do without it?Can I substitute something else that costs less?Can I use my own skills to make it myselfCan I buy it later25/02/2010UAPB Cooperative Extension - Family Resource Management Program11
- 12. Reducing stress25/02/2010UAPB Cooperative Extension - Family Resource Management Program12
- 13. ReducedincomeisstressfulRecognizeyour feelings.Talk withyourfamily.Use your support network.Take mental and physicalhealth breaks.Make the most of your time.Seekprofessional help if necessary.25/02/201013UAPB Cooperative Extension - Family Resource Management Program
- 14. Helping children cope25/02/2010UAPB Cooperative Extension - Family Resource Management Program14
- 15. Spendingdecisions affect the wholefamilyTalk withyourfamily about your situation.Let them know youneed to change yourspending habits, and explain the choices.Involvethem in decidingspendingpriorities.Listencarefully to eachperson’sconcerns.25/02/201015UAPB Cooperative Extension - Family Resource Management Program
- 16. Discussion and Questions?25/02/2010UAPB Cooperative Extension - Family Resource Management Program16
- 17. UAPB Cooperative ExtensionFamily Resource Management ProgramRita D. Conley, Extension Specialist25/02/2010UAPB Cooperative Extension - Family Resource Management Program17conleyr@uapb.edu870-575-8805/7211http://www.slideshare.net/conleyr