Making Ends Meet
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?
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. - How can I decrease my credit card debt?
ANS: 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. - 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.
- How can I learn more about making ends meet?
ANS: Often making ends meet 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.
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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.
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Programs:
Getting A Grip On Your Money
Making Money Work For You
Power Pay
Publications:
Developing A Spending/Savings Plan
Need More Money To Pay Bills? (Earned Income Credit)
NH Saves – Build Wealth Not Debt
Other Resources:
Top of pageNational Foundation for Credit Counseling
NH Legal Advice and Referral Center
