Living on Less or Getting By on Less
One in 15 people in New Hampshire lives below the federal poverty threshold and 31 percent of them are children under the age of 18. Families and individuals below the poverty level (for a family of four, about $18,850) have a critical need for information and education to help them make wise decisions related to healthy eating, stretching their food resources, reducing debt, getting and keeping a job, and sustaining their own and their families health.
Of those living in poverty, many are hungry or "food insecure"- living with the uncertainty of obtaining adequate food. Increasingly, food banks, soup kitchens and food pantries are called on to meet their food and nutritional needs. More than 22,000 households receive food stamps in New Hampshire.
- What do I do if I can't pay my bills?
- How can I decrease my credit card debt?
- How can I learn more about living on less?
- What do I do if I can't pay my bills?
- How can I decrease my credit card debt?
- The "Most Important" method focuses on repaying debts most important
to your credit rating or to maintain your family's safety.
- The "Low Balance" method focuses on paying off bills with the
lowest balances. Then the money used for those payments can go to
pay off other debts.
- The "High Interest" method is paying off those debts with the
highest interest rate reducing the total spent on interest charges
and increasing the amount available to pay down principal.
- The "New Payment Plan" method is used when credit payments, not
including mortgages, exceeds 15-20% of your take home pay and creditors
will work with you to set up monthly installments that are more in
line with your income.
- The "Debt Consolidation" Method is being used when a loan is obtained
for the purpose of paying off all your debts. Your monthly payment
will be lower because repayment is spread out over a longer period
of time. It's very important not to take out any additional loans
until your consolidation loan has been repaid.
If credit card debt is weighing you down, consider registering for UNH Cooperative Extension's money management course, “Making Money Work For You”, offered in your County that includes free access to the Power Pay Debt Reduction Calendar. Consider requesting the learn-at-home series, “Getting a Grip on Your Money” or obtain a copy of Your Credit File and When Your Bills Pile Up.
- How can I learn more about living on less?
ANS: Many people struggling financially ignore debts and fear contacting their creditors. This reaction will damage your credit rating. Creditors may take action against you in an effort to get payment. It is better to be proactive. If you're finding it hard to get your bills paid, be the one to contact creditors and lenders. Work out arrangements that satisfy you both. Decide how much you can pay back and set up a Debt Repayment Plan. For sample letters to assist you while contacting your creditors, obtain a copy of “Getting In Touch With Your Creditors”. For a worksheet on what to do when struggling to pay bills get " When Your Bills Pile Up" from UNH Cooperative Extension. Also, consider enrolling in the personal money management course “Making Money Work For You” or consider requesting the learn-at-home series, “Getting A Grip On Your Finances”, offered in your county.
Top of pageANS: Consumer debt has grown steadily for the past 40 years. Since the mid-1960s, total consumer credit outstanding relative to disposable income has fluctuated in ranges of 16-21 percent. (Federal Reserve ) That means anywhere from 16 to 21 cents of every dollar goes toward debt. Many Americans find themselves only a paycheck away from financial difficulty. A serious illness or job layoff could affect your ability to pay bills. There are a number of methods you can use to decrease credit card debt.
Often living on less means needing to make smart buying decisions.
In addition to the programs and publications listed below, check the links
under Smart Buying on our web site.
Another concern is when too much debt leaves little money to spend on things
we need or want. For more information about ways to manage credit and reduce
debt, check the frequently asked questions found on our web site under
Managing Credit or under Reducing
Debt.
- Taking Charge of Your Finances -A four-part workshop series designed for people wanting to achieve financial
goals (retirement, vacation, college education, etc) by gaining financial management
skills that reduce debt and increase savings. The workshop series covers reducing
debt, increasing savings, communicating about finances within your household,
understanding your insurance coverage and setting up and following a spend/savings
plan. Cost is $20/person or $25/couple. For more information or to register,
contact your county Cooperative Extension Office.
- Getting A Grip On Your Money - GRIP is a seven-part newsletter series mailed
to your house on a monthly basis. Newsletter topics cover setting goals,
implementing a financial record keeping system, understanding credit and
insurance, and developing and following a spending/savings plan. Subscription
cost is $8.95. For more information or to subscribe, contact your county Cooperative Extension Office.
- Making Money Work For You -A five-part workshop series designed for people concerned about their money,
just starting out or struggling to make it paycheck to paycheck and are looking
to manage debt and begin savings. The workshop series covers goal setting, credit,
insurance, stretching resources, spending choices and making a spending and savings
plan. Cost is $12/person. For more information or to register, contact your countyCooperative Extension Office.
- Power Pay - PowerPay is a computer program to create a repayment plan to reduce debt load. Contact your county Cooperative Extension office and request a PowerPay form. Cost $5.00
