Why an Accurate Budget is Important!

A Straight Talk on Debt

A Straight Talk on Debt gives you the real deal on debt, straight from our employees and personal finance experts. Learn more about debt relief plans and how to be financially fit.

Why an Accurate Budget is Important!

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We are answering our customer's top questions so they can find success on whatever plan they choose by understanding what it takes to be successful.   

This month's question is: Why an Accurate Budget is Important!

So you come across our site online, see a commercial, or are referred by a friend and decide to complete the no-obligation assessment. You get to the budget section either on your own online or while speaking with your Certified Credit Counselor. You immediately draw a blank on your income and expenses or feel you need to pad them to get a lower payment. The truth is your budget is necessary and needs to be accurate for you!

Don't worry we can provide you with all the necessary tools to complete an accurate budget. Here are two resources available on our site to get you started;

The key is to write down all sources of income, as well as, any fixed expenses such as your mortgage, car payments and utilities. Then move on to variable expenses such as; entertainment, gas, and personal items.

CareOne offers a Debt Management Plan (DMP) and a Debt Settlement Plan (DSP); the plan that is right for you may be determined by your budget.

  • DMP. If after completing your accurate budget you have money left over to pay your creditors monthly, then DMP may be the best choice for you. A DMP provides more favorable repayment terms and the ability to pay off your debt in 3-5 years.
  • DSP. A DSP is very different and involves stopping all payment to your creditors. A DSP is an excellent choice for customers who can no longer afford to pay their creditors and do not wish to file for Bankruptcy. If you find after completing your accurate budget that money is tight this may be the option for you.
  • Bankruptcy. The last resort is Bankruptcy. This is not something CareOne can assist you with; you would need to consult a Bankruptcy attorney. If after completing your accurate budget you are in the red or have only a few dollars left this may be your only option.

We are here to help you, and by providing us with an accurate budget we can help ensure that you enroll in the right plan for you.If you have a question you would like to see posted please feel free to leave it in the Comments section or, ask directly in our Ask the Expert Forum

Suzanne Cramer

Suzanne is a certified credit counselor working in our Ask the Expert forums as a coach and a Social Media Specialist for CareOne. Suzanne writes for our Blended Finances and A Straight Talk on Debt blogs.  As a soon to be divorced single mom, Suzanne also writes for the Divorce, Debt, and Finances blog. Ask her questions, share your story or just follow Suzanne on her journey as she navigates dealing with divorce, debt, and finances. Suzanne is also very active on Twitter and manages two CareOne accounts: ADivorcedMom and Ask CareOne where she shares the latest debt industry news and tips to keep your finances in check.

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  • Moving forward, I must continue to stay on this track. It is wise to manage my money because habits established early in life can have a positive impact on my finances

  • One of the reasons budgets fail is because a crucial first (and ongoing) step is missed in the budgeting process: tracking your expenses.

  • The same can be said for paying off credit card debt. You owe $15,000.00 that you don't have. Under the Care One DMP, you are given a monthly goal per month to get the debt paid down over a certain number of years. This is attainable and certainly better

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