Steps to Escaping Debt Slavery

7/28/2019 Steps to Escaping Debt Slavery

http://slidepdf.com/reader/full/steps-to-escaping-debt-slavery 1/14

Steps to Escaping Debt SlaveryToescapedebtbondageitisnecessarytothinkinanewway.Thisfollowingarethestepsto

doingthis.

Learnthevalueof:

• Trackingallincomeandexpenses.• Havingallyour=inancialfactsononeforminfrontofyou .

• Having a spending plan.

• Establishingclearprioritiesandpayinghighprioritydebts=irst .

• Savingforemergenciesandfuturemajorexpenditures.

• Spendinglessthanistakenin.(Theonlypathtowealth.)

Exploretheop2onsandwaysto:

• Reduceandeliminatedebts.

• Increasehouseholdincome.

• Decreasehouseholdspending.

• Consistentlymaketimelymonthlypayments .

• Avoidincurringmoredebts .

• Eliminateorreducethenumberofcreditcardsandlinesofcredit .

• Restructureexistingdebts.

• Legallystopcollectionharassment.

• Trackallincome,expenses,anddebts.

Step 1: Get the facts on paperGettingeverythingonpapercreatesanessentialandpowerfultooltogetoutof

debtandonthepathto=inancialstability.

The Income & Expense form is crucial to track money, guidespending,andrevealtheamountavailabletopaycreditors.Itisalso required to determine eligibility to participate in aDMP(DebtManagementPlan)or=ilebankruptcy.

Whatisnecessarytogetstarted?

• Income & Expense Form. (This and the formmentionednextcanbefoundatwww.thefrugalprosumer.comorattheendofthisworkbook.)

• CreditCardandOtherDebtsForms.

• Lasttwopaycheckstubs.(Forincomenumbersandpayrolldeductions.)

• Recentcreditcardstatementsandpaperworkforanyotheramountsowed.

• Bills,statements,andotherrecordstohelpdetermineexpenses.

StepstoEscapingDebtSlavery

www.TheFrugalProsumer.com 1



• Awillingattitudetomakelong-termchangesinsteadofshortterm‘band-aid’=ixes.

CompletetheIncomeSec2onoftheIncome&ExpenseForm

• Frompastpaycheckstubsrecordincomeanddeductionswithheldeachmonth.

• Includeincomefromallfamilymembers.

• Allmiscellaneousincomeshouldbeincluded.(Cash,parttime,sidejobsetc.}

• Possible changesinincome,suchasslowdowns, layoffs, overtime, andothers thatcouldaffectfuturepaychecks,needtobenoted.

CompletetheInves2ng/Savings

• Youmaynothave muchto put inthisspacebut startthinking abouttheseareas for thefuture.

CompletetheAssetInventory

• Thismustbeaccurate.Theinformationisvitalfordeterminingaplanofactionandpossibledebtrestructuring.

CompletetheHousing,Vehicle,andLivingExpensesSec2ons

• This is not thetimeorplacetomakejudgmentsorsuggestionsabouthowmoney shouldhavebeenspent.

• ThehouseandvehiclepaymentsareincludedhereNOTontheDebtForm.

• Some of the =igures will change from month to month. Do not get hung up on exactnumbers.Thegoalistobecon=identthateverythingisincludedandmoveon.TrackingallexpensesforamonthormoremaybenecessaryforaccuracyandtomakeaPlanofAction.

• Chooseamethodtotrackfutureexpenses.Useamethodthatworksfor you:Paperledger,envelope system, or computer spread sheet or program. Quicken or Microsoft Money arepopularprograms.

CompletetheCreditCardandOtherDebtsForm

• All debts, payments, interest, and amount owed must be included. DO NOT list homemortgageand vehicle debts here. They shouldbe recorded in the Income and ExpenseForm.

• Arecreditcardsstillbeingused?

• Didyouforgetanydebt?If=ilingforbankruptcy,anydebtsnotlistedwillnotbedischarged.

• Taking the total debt owed and dividing it by the number of years it

has been accumulating will give a rough idea of how much is

beingoverspenteachyear.Thisisalsoagoodwaytodetermine

ifallexpensesareaccountedfor.

Step 2: Prioritize and Debt TriageTriage is used in emergency medical situations to sort out the

patientsthatwill livewith somehelp, thosewhowill surviveeveniftheydon’tgethelprightaway, andthosewhowilldienomatterwhatis done. Because every situation is unique, the order inwhich billsshouldbepaidwillvary.Thiswilldependonindividualcircumstancesandgoals.However,thefollowingmustbeconsidered:


2 www.TheFrugalProsumer.com



-TOPPRIORITYBILLS-

• Family necessities: Food,shelter, utility,andessentialmedicalexpenses. Therearewaysthese expenses can be kept to a minimum. Our other publications and website atwww.thefrugalprosumer.comcoverwaystodothis.

• Housing related bills: Mortgage, real estate taxes, house insurance, or rent payments.Failuretopaythesecanleadtohomelessness.

• Utilityservices:Paywhatisessentialtokeepthemconnected.

• Carpaymentsandrequiredinsurance:Especiallyifthecarisnecessaryforwork.

• Childsupport:Includepastdueamounts.Nonpaymentcanresultinseriousconsequences,includingprison.

• Securedloans:Wherelosingthecollateral(whatyouputupaspledgeifyoucan’tpay)willcauseunduehardship.

• Incometaxdebts: Thegovernmenthasdebtcollecting rightsthatothercreditorsdonothave,particularlyifyoudonot=ileyourtaxreturn.

-HIGHPRIORITYBILLS-• Studentloans.Ifdelinquentinthese,itmayresultinseizureofyourtaxrefundsanddenial

ofnewstudentloansandgrants.Federallawallowsthesespecialcollectionremedies.Gotowww.thefrugalprosumer.comformoredetailedinformationonstudentloans.

• CourtJudgmentbycreditor.Thismaymoveadebtupinpriority.Thecreditorcanenforcethat judgment by asking the court to seizecertainproperty, bankaccounts, and garnishwages.Theseriousnessofthisthreatwilldependonstatelaw,propertyvalue,andincome.Ifallpropertyandwagesareprotected, thisdebtshouldbepaidonlyaftermorepressingobligationsaremet.

-LOWERPRIORITYBILLS-

• Unsecuredloanswithoutcollateral. Most credit carddebts, attorney, doctorandhospitalbills, debts to professionals, open accounts with merchants, subscriptions, and loans tofamily or friends. Unless they obtain a court judgment there is very little they can dobesidesstoppingservices,reportingtothecreditbureauandkeepon“harassing”.Readourcounselingmanualtoknowwhatyourrightsareandwhatlawsifanyarebeingbrokenbydebtcollectors.

• Loans with only household goods as collateral. Creditors rarely seize household goods.Theyhavelittlemarketvalue,it’shardtoseizethemwithoutcourtprocess,anditistimeconsumingandexpensivetodoso.

Thechoiceofwhatdebtstopayshouldbebasedonwhatisbestforthefamilynotwhatis

bestforthecollector.Debtcollectionorthreatstoruinonescreditrecordshouldnevermoveupadebtpaymentpriority.

Cosigneddebts

Ifmoney is owed because someone defaultedon a debt you cosigned for, it should betreatedthesameasyourowndebtandprioritizedaccordingly.

Ifothers havecosigned for you and you are unable to makethe payments, you shouldinformthecosigneraboutyour=inancialproblemssincetheconsignerwillthenhavetomakethepayments.Themajorityofcosignersenduppayingthedebt.Thereasonaconsignerwas





requiredinthe=irstplaceisbecausethecreditorknewtherewasaveryhighlikelihoodthatthedebtwillnotbepaid.Ifyoufeelyouhavetocosignforsomeone,just givethemthemoney,itwillcauselesshardfeelingsintheend.

Step 3: Exploring SolutionsThesolution to solving =inancial problems is very simple: Increase

incomeordecreaseexpenses.It’stheimplementationofthisthatissodif=icult. The responsibility to change falls on the shoulders of thepersonindebtnotsomecounselortellingthemwhathastobedone.Theroleofacounselorandthis bookletis tomakethedebtorawareoftheoptions,tohelpevaluatetheseoptions,andtocomeupwitharealisticplanofaction.Thefollowingarethingsthatneedtobeconsidered.

Stopthe“bleeding”

Togetoutofdebtyouhavetostopthebleeding.Thismeans:

• Stop spending.While trying to get thingsunder control, declareaspendingmoratoriumanddonotpurchaseanythingexcepttheabsoluteessentialsyouneedtosurvive.

•Stopborrowingmoney.Youcan’tborrowyourwayoutofdebt.

• Stopusingcreditcards.Useonlycashorwriteacheckonanaccountwithadequatefundsforeverypurchasemade.

Lookforwaystoincreasetake-homepaybyexploringthepossibili2esof:

• ChangingthewithholdingsonyourW4toincreasetake-homepay.

• Increasingworkhoursbyworkingovertimeoratasecondjob.

• Encouraging others inthe familyto workorcontribute. Childcare, cleaning, paper route,etc.

• Takinginaboarder,roommate,orrentoutaroomorgarage.

• Collectinganydebtsowedtoyou.

Checkoneligibilityfor:

• Special tax credits suchasreal estate taxcredit (calledHomesteadCredit inWisconsin),EarnedIncomeCredit,childcare,oreducationhelp.

• FoodStamps(FoodShare), WIC(in Wisconsin), school lunch, FoodBank, orEmergencyFoodAssistance.

• Loworno-costhealthcareSuchasBadgerCare(inWisconsin),Medicaid,orSeniorCare.

• Reducedmedicalorhospitalbills.

• Utility,homeenergyassistance,andphonebillassistance.• EmergencyprogramsattheSalvationArmy,churches,woman’sgroups,etc.

• SocialSecurityorSSI(SupplementalSecurityIncome)orotherdisabilityhelp.

• Unemployment(iflostjob)orWorkersCompensation(ifinjured).

• Veteranbene=its.

• Childsupport,alimony,propertydistribution,debtpaymentassistance,etc.





Lookforwaystoreduceexpenses:

• Movetoasmallerorcheaperplace.

• Re-evaluatehome,auto,andlifeinsurancedeductibles,coverage,anddiscountsavailable.

• Reducephone,cable,andInternetservices.

• Reduceutilityusage.Basicallyutilitiesarecreditcardswithoutthecards.

• EliminatePMI(PrivateMortgageInsurance) .

• Buyusedorsecondhand.

• Stoporreducespendingonvacationsandgifts.

• Evaluateschoolexpenses.

• Reduce number of automobiles owned. Sell or get rid of second vehicle, use publictransportation,replaceexpensivevehicleforcheaperusedone.

• Changepayrolldeductionsortemporarilyeliminatethem.

• Determinewhether adult children or others living in the home cancontribute more or

moveout.

Lookforwaystobringinextracash:

• Sellassets.Home,land,vacationproperty,vehicles,boat,camper,sportsequipment,etc.

•Tapinto someofyour retirementmoney. (Thisisusuallyabadidea.)

•Stopcontributingto401ktemporarily.Dothisreluctantlyifyourcompanycontributesamatchingamount . Cashingouta

401kwillusuallyincludepenaltiesandtaxliabilitiesthatcanreducetheamountthepersongetsbyhalfontopoftheloss

of future earnings. If retirement is not far off, cashing outretirementbene=itsmaybedisastrous.

•In general, using savings or other assets to pay off lowprioritydebts isnotagoodstrategy.Ifnecessary,it isbestto

useit asa lumpsum payment whencreditorsoffersettlements. It is more important tohaveanemergencysavings account than a credit card. You are not required to tell billcollectorsaboutyoursavingsnorisitagoodidea.

Lookforwaystorestructuredebts:

Byloweringinterestandorpayments.

• Re=inancethehouseorcarifthereisenoughequityinthem. But thisoptioncanbe verydangerousandformostpeoplemakesthingsmuchworse.Bythetimetheyseekouthelpmany have already done this and much to their dismay =ind they are now in a worsesituationthanbeforebecauseofit.

WARNING: Debt consolidation does not eliminate debt. It is only a short-term

solutionthatcanattimesmakeiteasiertopaydowndebt.Inmostcasesitshouldbe

avoidedasitcandigoneintoaholesogreatitisimpossibletogetout.





• Transferdebttoacreditcardifalowerrateisanoption.

• Takeoutalowerinterestbankloan.

• Borrowfromfamilyorfriends .

• With therightcircumstancesa debtmanagement planwithacounselingagencycansave

lots of money. Be aware that consumer credit card counselors are in reality debtconsolidatorsandgetpaidbycreditcardcompanies.Thepotentialforabuseishigh.ThoseassociatedwiththeNFCCorganizationandtheUnitedWaytendtobemorereputable

Consolida2onisdangerousif:

• Re=inancingunsecureddebtwithsecureddebt.

• Re=inancingadebtwitha =inancecompanyorhighinterestratesecondmortgagelender.Instead, askthem for lowerpayments ontheexisting loan. Anew loanwill likely includemorefees,higherrates,andprepaymentpenalties.

• Using a second mortgage to pay off a car loan. This now puts the house in danger.

Repossessionisbadbutforeclosureisworse.• Replacingalowercostloanwithahighercostone.Besureinterestandallotherfeesand

expensesinvolvedareconsideredinthecost.

• Taking out a mortgage for tax saving reasons. The real savings is more often than notnegligibletonon-existent.

• Takingoutavariableinterestloan.Thepaymentscanincreasewhenonecanleastaffordit.

• Alumpsumisdueattheendoftheloan.

• Allowingmoneyhabitsandcreditcardusetoremainunchanged.Payingoffcreditcarddebtwithconsolidation loans isverydangerousif thecarddebt isrunup again. If theinitial

causefordebtproblemswasauniquecircumstancesuchasajoblayoff,sickness,etc.itmaybeanoption.

• Committing fraud on the application whether done by theborrower or lender. This was a big contributor to thedisastroussubprimemeltdownin2008.

• Takingmoneyouttobuymorestuff.Danger!

Step 4: Negotiating with Creditors

• Communicatewith creditors tosee if they willmake anyconcessions.

• Ask if they will reduce the debt in exchange for a lump sumpayoff. Be aware of companies that advertise they can reducemuchofyourdebtbynegotiatingwithyour lender. Almostallofthemarecons.

• Ask if they will defer or wave late fees, or allow missedpaymentstobemadeupoveraperiodoftime.

• See if themortgage holderwill agreeto any of the following:mortgage workout, re=inancing, short sale, or a deed in lieu of





foreclosure.

• Findoutiftheutilitycompanyoffersanyspecialhelp.

Step 5: Dealing with Debt Collectors

• Be sure the debts are legally collectible. In Wisconsinand inmost states a majority of debts that are older

thansixyears,cannotlegallybecollected.

• Arethedebtslegallyyours?Hasthestatuteoflimitationexpired or is it about to? Be aware of “zombie” debtcollectors.Theyresurrectolddebtsthatarenotlegallycollectible because of the statute of limitations. If thedebtcollectorcangetyoutopayjustatinybitonthedebt,it“resurrects”thedebtandnowmakesitlegallycollectible.

• Themostimportantcreditorstopayarethosewhohavethepower to terminateutilities,foreclose,orevictquicklywithminimalexpenseorlegalprocesstothem.

• Donotpaylessimportantbills=irstbecauseofdebtcollector’sharassment.

• Beawareofwhatbillcollectorscanandcannotdoifthebillsaren'tpaidrightaway.Oftenthereisnotmuchcollectorscando.That’swhytheyusesuchstrongverbalthreats.

Op2onsofunsecuredcreditors:

• Stopdoingbusinesswiththedebtor. Thisisaproblemonlyifthecreditorhasamonopolyonessentialservices,suchastheonlymedicalorutilityserviceinthearea.

• Reportthedelinquencytothecreditreportingagencies.Ifpaymentshavebeenmissed,thedelinquencyreportisinevitableandhasprobablyalreadybeensenttotheagency.

• Beginalawsuittocollectwhatisowed.Thismaynotbeasseriousasmostthinkbecause:

‣ Thecostofthelawsuithastobeworththecreditor’sexpenseandlimitswhattheycando.

‣ Thedebtorcancontest thisaction andthismay encourage thecreditorto work withtheminstead.

‣ Ifthecreditorwinsalawsuit,thedebtorcannotgotojailfornotpayingadebt.

‣ Ifa judgmentis obtained and they try to garnishwages ortakeout a lien, they arelimitedbylawastowhattheycando.

‣ Ifthedebtoris“judgmentproof”(havingnoassetsorallassetsareprotectedbylaw),

thereisnothingthecreditorcantake.

Waystostopdebtcollec2onharassment:

• Preventit from happening inthe =irst place. Assoonas youknowthereis goingtobeaproblem, contactthecreditorandseeifyoucanworkoutanagreement. Ignoringthebillswillnotmakethemgoaway.

• Useaceaseanddesistletteriftheharassmentistoo greatandthecreditorwillnotworkwithyou.

• Workoutadealwiththecollector.Thecollectormayormaynotbethecreditor.





• Disputethebill ifyouthink theyarewrong.Thiswilldelaythecollectionprocessandbuysometime.

• ComplaintoagovernmentagencysuchastheFederalTradeCommissionorstateattorney.

• Suethedebtcollectorforillegalactivity.Thiscanbedoneinasmallclaimscourt forupto$1,000plusactualdamages,fees,andanyresultinginjuries.

• Fileforbankruptcy.Thiswillinstantlystopallcollectionactivity.• Know ones rights and what constitutes illegal debt collection activity. Check outwww.thefrugalprosumer.comformorein-depthcoverageofthis.

Bankruptcy

Isbankruptcytherightwaytogo?

• Itcanbethefastestandeasiestwayto dealwithall types ofdebtproblems.Usually itshouldnotbe the =irst option, but waiting until the lastminute to think about it may mean someimportantrightsarelostbythedelay.

• It isa complicated legalprocedure that usually requires legal help, fees, and mandatorycounselingandeducationclasses.

• Ittemporarilystopsalmostallcreditorsfromtakinganyaction.

• Itcanpermanentlyremovelegalobligationstopaycreditors.

• Inmostcasespropertywillnotbelostby=iling. Secureddebts,suchashouseandcar, canbeexcludedfrombankruptcy.

• Inmost cases theperson does not need to go to court.One meetingwith abankruptcytrustee(notajudge)isallthatisinvolved.

• Usuallyitwillnotmakeacreditscoreanyworsethanitalreadyis.Itmayactuallyincreaseyourcreditrating.

• Beonthealertforbankruptcyscams.

• Itwill not discharge the following: most student loans, child support, alimony, criminal=ines,courtrestitutionorder,sometaxes,intentionaldebtsrunupbeforebankruptcy,debtsincurredafter=iling,andcosignedloans.

• Itisgenerallynotannouncedinthenewspaper,butitwillbeonpublicrecord.

• There isa precedent forbankruptcyin theBible. InOldTestamenttimes debtwasto beeliminatedaftersevenyears.

• Ifoneisjudgment-proof,bankruptcymaynotbethebeststrategyatthistime.

Things to avoid that often make things worse:

• Writingchecksthatwillbounceorpostdatingchecks.

• Paydaylenders,renttoown,autotitleloans,pawnshops, =inancecompanies,andtaxrefundanticipationloans.

• Debtconsolidatinganddebtnegotiatingcompanies.





• Credit repair organizations. Besides charginga lot forwhat couldeasilybedone by theperson,theyareoftenaripoff,advisingillegalactivities,andmakethingsworse.

• Fraudulentactivitiessuchas:

‣ Conversionof collateral:Giving away or selling collateral is a crime.Notpayingyourdebtisnotacrime.

‣ Fraudulentconveyances:Protectingpropertybytransferringittosomeoneelseforfreeoralowcost .

‣ Lyingtoormisleadingcreditors:Iftheyencouragelyingtoqualifyforsomething,don’t,becausetheycanlaterusethatagainstyou.

• Pouringlotsofmoneyintoamortgagetosaveahousethatisgoingtobelostanyway.

• Spending“therapy”: Spending money irrationally. If this happens justbeforebankruptcy,thosedebtsmaynotbeerasedbybankruptcy.

• ParticipatinginaSaleandLeaseBackprogramtosavethehousefromforeclosure.

• Patronizingcompaniesthatgiveloansregardlessofcreditscore.Theirpricewillbehigh.

• Voluntary wage assignments. (Where you give permission for a lender to garnish yourpaycheckshouldyoudefault.Notagoodthingtosign,obviously.)

• Manyplacesofferingdebthelparebadnews.Beingnon-pro=itdoesn'tmeantheycan’tripyouoff.Findthegoodone.Youhavetodoyourhomework.

• Getrichscams:Like“Earnupto$5,000perweek,noexperiencenecessary.”

• Countingonlotterywinningstosolvedebtproblems.Thechanceofwinningisrare.

• Goingfurtherintodebtforeducationandtradeschoolsthatlikelywillnotbringinahigherincome.Schoolloansarenotdischargeableinbankruptcy.

Preventing & Avoiding SetbacksBank feesandoverdrafts cancostevenmorethanpaydayloans.Forthosewho =indittoo

dif=iculttoavoidthesebankfeesandoverdraftssomeoptionstocheckingaccountsare:

• ETA (Electronic TransferAccount) for directdepositof federal funds. They arelowcost,can’tbeoverdrawn,andaremoreprotectedfromclaimsofcreditorsthanregularchecking.

• Moneyordersandinexpensivecheckcashingplaces.Oftenpayrollcheckscanbecashedforfreeatthebanksthatissuedthem.

• Creditunionsoftenhavelowerfees.

• Wal-Martcashcardscanbeissuedwhencashingpayrollchecks.Thesewillworkanywhere

thattakescreditcards.

• Orderacreditreporttocheckforerrorsandidentityfraud.





Psychology of Financial CounselingFinancialtroublesanddebtareemotionallydrainingandarefrequentcausesoffamily

arguments,separation,anddivorce. Almosteveryonehas =inancialproblemsatone timeoranother.Mostpeoplearetooembarrassedtotalkabouttheir=inancialproblemssotheyneedto be set at ease. Helping them to =indhealthy ways to handle the stress reduces theiremotionalturmoil.

• Peoplewhocan’tpaytheirbillsoftenhaveastrongsenseofguilt.Understandthatbillcollectorswillplayonthis.Creditorstakeintoaccountthefactthatsomepeoplearegoingto beunableto pay theirdebtsbecauseofjobloss, illness,divorceorunexpectedevents.

Thisis=iguredintothecreditorspro=its.

• Adebtcollector’sjobistoplayonthedebtor’semotionssotheywillpaythemirst.

Theyaretaughttohavenosympathyandtoignoreanyreasonsfornotbeingabletopay.





Extra Blank Forms

ExtraForms


For _________________________________________

Owe to:Balance

DueInterest

Monthly

Payment

Past Due

Amount

Estimated

Yearly Interest

(APR) (if any) Balance x APR

If more use another sheet F. Total Credit Card & Other Debt

Put balance in (K) on Income & Expense Form

Do you have them all?

Credit Card & Other Debt Form Include all credit card and other debts (Do not list mortgages, home equity, and vehicle debts here.)

Please list those on the "Income & Expense Form" and in the "Asset Inventory" box.

*Accountant *Alimony *Back rent *Bank loans *Credit Cards *Child Support *Dentist *Family loans

*Finance Co. *Judgments *Lawyer *Liens *Medical *Payday Loan *Personal Loans *Rent-to-own

*Store Credit *Student Loans *Taxes *Utilities past due

! !!!!!!!!!!!!!!!!!!!!!!! ! ! ! !! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!



Income & Expense Form For: ________________________________

(Profit & Loss Statement) Expected Tax Refund $ _____________

Past Revised Past Revised Amount

Income After taxes & deductions Monthly Monthly VEHICLE EXPENSES Monthly Monthly Past due

Self Auto Payment 1

Spouse Auto Payment 2

Other Jobs Car Insurance

Child Support Repairs (Oil change, plates)

Other income Including cash Gas Car Replacement

D. TOTAL VEHICLE EXP Investing/Savings

Charity (Blessing others) LIVING EXPENSES Savings (Emergency Fund) Groceries

Retirement(Passive income) Eating Out

Other Child/Elder Care Diapers/Baby supplies

Amount Allowances

HOUSING EXPENSES Past due CigarettesMortgage/Rent Clothing

Second Mortgage Laundry/Cleaning

Taxes & House Insurance Barber/Beauty/Personal

Home Maintenance Other Insurance

Electric Prescriptions/Doctor

Gas/Heat Dental

Water/Sewer/Septic Pet

Phone Subscriptions/Dues

Cable/ Satellite Dish School/Education

Internet Gifts

Recreation (Wild Money) MiscellaneousE. TOTAL LIVING EXP

Asset InventorHouse/Land: Yr Interest

Owe Value APR Owe x APR From (B) Investing/Save

$________ $______ %______ $______ From (C) Housing Exp

$________ $______ %______ $______ From (D) Vehicle Exp

$________ $______ %______ $______ From (E) Living Exp

G. Total Expenses

Vehicles:

$________ $______ %______ $______

$________ $______ %______ $______ H. From (A) Total Income $________ $______ %______ $______ I. From (G) Total Expenses

J. Sub Total- (H) minus (I) Other Assets Value K. From (F) Total Debt Form

_______________________ $__________ Final Total-(J) minus (K)

_______________________ $__________ ( Profit or Loss)

_______________________ $__________

_______________________ $__________

Total Interest paid out per year $______

A. TOTAL INCOME

B. TOTAL INVESTING

C. TOTAL HOUSE EXP

ExtraForms




ExtraForms


For _________________________________________

Owe to:Balance

DueInterest

Monthly

Payment

Past Due

Amount

Estimated

Yearly Interest

(APR) (if any) Balance x APR

If more use another sheet F. Total Credit Card & Other Debt

Put balance in (K) on Income & Expense Form

Do you have them all?

Credit Card & Other Debt Form Include all credit card and other debts (Do not list mortgages, home equity, and vehicle debts here.)

Please list those on the "Income & Expense Form" and in the "Asset Inventory" box.

*Accountant *Alimony *Back rent *Bank loans *Credit Cards *Child Support *Dentist *Family loans

*Finance Co. *Judgments *Lawyer *Liens *Medical *Payday Loan *Personal Loans *Rent-to-own

*Store Credit *Student Loans *Taxes *Utilities past due

! !!!!!!!!!!!!!!!!!!!!!!! ! ! ! !! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!



ExtraForms


Income & Expense Form For: ________________________________

(Profit & Loss Statement) Expected Tax Refund $ _____________

Past Revised Past Revised Amount

Income After taxes & deductions Monthly Monthly VEHICLE EXPENSES Monthly Monthly Past due

Self Auto Payment 1

Spouse Auto Payment 2

Other Jobs Car Insurance

Child Support Repairs (Oil change, plates)

Other income Including cash Gas Car Replacement

D. TOTAL VEHICLE EXP Investing/Savings

Charity (Blessing others) LIVING EXPENSES Savings (Emergency Fund) Groceries

Retirement(Passive income) Eating Out

Other Child/Elder Care Diapers/Baby supplies

Amount AllowancesHOUSING EXPENSES Past due Cigarettes

Mortgage/Rent Clothing

Second Mortgage Laundry/Cleaning

Taxes & House Insurance Barber/Beauty/Personal

Home Maintenance Other Insurance

Electric Prescriptions/Doctor

Gas/Heat Dental

Water/Sewer/Septic Pet

Phone Subscriptions/Dues

Cable/ Satellite Dish School/Education

Internet Gifts

Recreation (Wild Money) Miscellaneous

E. TOTAL LIVING EXP Asset Inventory

House/Land: Yr Interest

Owe Value APR Owe x APR From (B) Investing/Save

$________ $______ %______ $______ From (C) Housing Exp

$________ $______ %______ $______ From (D) Vehicle Exp

$________ $______ %______ $______ From (E) Living Exp

G. Total Expenses

Vehicles:

$________ $______ %______ $______

$________ $______ %______ $______ H. From (A) Total Income $________ $______ %______ $______ I. From (G) Total Expenses

J. Sub Total- (H) minus (I) Other Assets Value K. From (F) Total Debt Form

_______________________ $__________ Final Total-(J) minus (K)

_______________________ $__________ ( Profit or Loss)

_______________________ $__________

_______________________ $__________

Total Interest paid out per year $______

A. TOTAL INCOME

B. TOTAL INVESTING

C. TOTAL HOUSE EXP

Documents

Steps to Escaping Debt Slavery