Hi, my name is Maria Enomoto from Consumer Credit Counseling Service, and today we aregoing to talk about how to stay out of debt. The best way to stay out of debt is to livebelow your means. You need to work out a spending plan that includes every single expense thatyou have and those expenses need to be recover by your income. So, this is the only way thatyou are not going to be in need of some extra money to cover from some living expenses. So, first thing it is work out a budget, work out a really detail budget that includes not Today we are going to take apart an iPhone I am going to show you how to take off and replace th… only your grant expenses or expenses that you have every month, but also future expenses,such as taxes, such as insurance. Sometimes we don’t pay that every month but we need to set aside the money just to make sure that we will have the money by the time we needto pay.
Another thing that can include is any kind of gift that you probably will wantto make, especially in Christmas time it is good to have a separate different budget becauseit is going to be a month that we will be spending more. The best way is to make surethat our income is enough to cover all our living expenses and also that we are payingfor the debt that we have accumulated in the past. The good of staying out of debt of courseis that we are going to be overwhelmed with all these payments that we have to make. But, Let Homemakers help transform your house into a home by visiting our showroom or shopping at Homemakers.c… if you can’t skip payment of debt, that you need to apply for debt because of an emergencyfor example. Just make sure that the terms that you are going to have to pay off this debt, is something that you can afford with your budget. So again, we are going back tothe budget and we need to include the amount that we are going to pay to the creditor,just to make sure that we are going to pay that debt off. Another thing that will keepus out of debt, will be to set aside some money every month.
We need to go back to thesavings thing and savings has to be part of our spending plan too. We must set aside somemoney out of our paychecks just to build some savings or emergency fund that we can usein case of any emergency or unplanned expense.