The Envelope Method - A New Debt Management Strategy Introduction Discover a unique method to get rid of debt problems - try the envelope method to streamline your finances. The Latest Debt Management Program Strategy There is no doubt that a loan can be a lifesaver in an urgent situation, but did you know they can be life threatening as well? If not paid off on time, debt accumulates and soon becomes a burden. The most common advice you get from debt management programs is to opt for debt consolidation or debt settlement based on the severity of your debt problem. Of course these strategies are helpful for settling your debt, but how helpful are they at setting up your budget? Debt management services have now come up with an innovative envelope method which will help you to not only get out debt but to streamline your budget as well. New Budgeting Technique Have you ever wondered where your money is going? In our busy day-to-day lives, we are so engrossed with meeting our expenses that we forget to review them. The result is accumulating debt, and, in some cases when the situation gets out of control, the only option remaining is bankruptcy. But your debt situation would not be so drastic if only you could be alerted before things get out of control. Debt management programs are teaching a very basic and useful skill with this new budgeting technique. To get started, list out all of your standard expenses. Break your list into categories, like food and groceries, gasoline, mortgage payment, car loan payment, weekly entertainment, personal grooming, etc. Experts in debt management programs suggest keeping an extra section for emergency situations. For each category, label an empty envelope. Now determine the amount of money you will allocate for each of the categories on your list for a particular time period, say one week, fifteen days or even monthly. Debt management program counselors suggest two weeks as the ideal period because most people get paid every two weeks. Put the stipulated amount in the respective envelopes.
This new technique for debt management will help you to not only curb your expanding budget but also to learn to modify your lifestyle by living within your budget and avoiding any further debt.