HUMS 202 Lecture Notes - Lecture 10: Credit Counseling, Identity Theft

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7 Feb 2017

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1. Evaluate current financial situation:
a. Amnt and source of income
b. Date recieve income
c. How prioritize and spend income
d. How much overspending each month
Basic necessities: mortgage/rent, food, utilities, transportation
-if can’t afford mortgage/rent payment contact lender of landlord immediately to explain situation
and negotiate payment plan or contact HUD to locate a HUD-approved counselor
Can’t make car payment → sell car to pay off loan to avoid repossession expenses
High priority expenses: insurance for home, car, health and life; medical expenses
2. Develop financial recovery plan
a. Org. financial goals by timeframes
b. Evaluate progress and goals
Budget tools:
1. Expense envelope system: useful if you want to pay your bills in cash each month, label
an envelope for each expense category and write amnt and due date then divide income
you receive into each envelope
2. Computer spreadsheet system: create spreadsheet w/ income sources and expenses
3. Budget box system: small box w/ dividers for each month and bills placed in each
divider→ pay off bills when income comes
4. Monthly payment schedule: dates on calendar to align with when need to pay basic
Identity theft: file report w/ police & get copy of report, contact creditors about any accounts
that’ve been changed, follow up in writing and include supporting documents, use identity theft
affidavi, file complaint w/ FTC
Credit counseling agencies used to help with budgeting → help w/ managing money/debt,
develop budget, learn about consumer credit, money and debt management
Review budget plan w/in 2 months of implementing and then every 6 months after
Review and adjust insurance coverage @ least 1/yr to determine if adeqaute
Once on path to recovery, rebuild savings
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