Even though the growth of the median US household income keeps outpacing the cost of living, household debt keeps ballooning, according to a NerdWallet study. People are spending more, and they are taking on more revolving debt, like credit card debt.
People are taking on more and more revolving debt.
The same study established that as of June 2020, the average US household carried $6,124 in credit card debt.
If you feel that your credit card debt is spiraling out of control, you may need professional help. Contact a ClearOne Certified Debt Specialist at 866-481-1597 to learn what debt relief options you have.
You should also start monthly budgeting. Do you have a thorough grasp of how monthly budgeting works? Take this quiz to find out.
Correct Answer: 2. To keep track of your expenses. It's easy to spend more than you think if you are not keeping track of expenses, especially if you use credit cards frequently. But Investopedia notes that if you create and stick to a budget, you'll "know exactly how much money you earn, how much you can afford to spend each month and how much you need to save." That sounds pretty good, right?
Correct Answer: 1. They feel a budget is too restrictive. Though this is a common thought, it is not necessarily a correct one. A well-designed budget can actually help you feel less restricted because you will know exactly where you stand financially, which will help you to make smart decisions. There is freedom in being in control of your finances rather than letting your finances control you.
Correct Answer: 3. Fixed committed, variable committed, and discretionary. Fixed committed expenses are expenses that are the same every month, such as your mortgage payment or car loan payment. Variable committed expenses are expenses you pay every month that may vary in amount, such as your utility or cell phone bills. Discretionary expenses are non-essential spending and include expenses such as dining out, entertainment costs, and so on.
Correct Answer: 1. Groceries. Groceries are "variable" expenses because you likely do not spend exactly the same amount of money on groceries each month. They are "committed" expenses because they are essential expenses for necessities.
Correct Answer: 4. All of the above. Your bank statement, checkbook, and credit card bills are all great places to look to get a good picture of your total monthly expenses. The more thorough you can be with your budget, the more useful it will be as a tool to help you reach your financial goals.
Correct Answer: 2. Fixed committed expense. Because your mortgage or rent is the same amount each month and is a necessity, it is considered to be a fixed committed expense.
Corret Answer: 2. Fixed committed expense. Fixed committed expenses are necessities, or essential, expenses.
Correct Answer: 3. 20 percent. While the answer varies somewhat depending on how close you are to retirement, as a general rule, most financial planners recommend having the goal of saving 20% of your gross income each month.
8-10 correct answers: Congratulations! You probably already have a monthly budget set up. Way to go!
6-7 correct answers: You understand the basics of budgeting, though you are oblivious to some of its finer points. The best way to learn to budget is to actually do it. Draw up a budget today and find out where your money goes.
4-5 correct answers: You are new to budgeting. The fact that you are interested enough in it to have completed this quiz is a plus, however. Educate yourself and take control of your spending. Budgeting should be a part of your credit card relief efforts.
Fewer than 4 correct answers: You are in dire need of budgeting knowledge. Not knowing how you spend your money is probably the reason you may be struggling with credit card debt now. Learn to budget and explore debt relief options.
Regardless of your current budgeting expertise level, input from a Certified Debt Specialist by calling 866-481-1597 can help you better manage credit card debt. Feel free from debt. Get control of your finances today.
I cannot thank everyone at ClearOne enough from the account managers to customer service to negotiations everyone was very helpful along the way.