I know from speaking to community based groups the FCRA is the most important document you can have if you have credit, ever applied for credit or want to apply for credit in the near future. You are reading this column because you are determined in changing your current credit status and are determined on improving your current, and future credit rating.

This week’s column will concentrate on budgeting techniques for your creditors and collections agencies. Guess what the most important aspects of budgeting are. No, not having enough money - no not getting a loan and definitely no not believing you are going to hit the numbers or the lottery. It is an experience that we have all had to deal with - I know from where I speak. I was not always a consumer credit counselor and just as many of you have doctors who lecture you about weight loss and they themselves could stand to lose an ounce or two. There are a number of credit counselors, bankers, and accountants who are not good with their finances. Many times when people think of budgets they think of taking away or doing with out. To be quite honest it just means to plan your expenses. Planning is what we are going to have to do and if you do not like planning or believe it is too much of a drag - I understand; however the rest of us who are committed to changing and becoming better stewards with our money will think of you from time to time as what we use to be.

1. Gather all bills - new, old - bills, light bill, gas bill, water bill, grocery bills, telephone bill, student loans, finance company bills, tickets, insurance bills, court fines, IOU’s, cell phone bills, the cable bill, nsf notices from your bank, and most important your bank statement. If you really want to be come debt free you are going to have to realize that you can not run from your financial obligations and responsibilities.

2. Purchase a $9.99 solar (no need to spend extra money on batteries) calculator. That’s two packs of cigarettes, a case of beer or burgers for two. Then get two pens. A red pen and a green pen. Any other colors and you will not “get it.” This will do one of two things. You will make an excuse for not having the pen colors and decide it is too much trouble and not complete the exercise or it will show you that you are serious about getting out of debt. Many will look at this as a just two pens. I look at this as a commitment. The first step to overcoming any dilemma is to focus and begin to do something about it - this is your do phase. It is amazing that something as little as the color of pens can get your life in order.

3. Green vs Red - In one column with the green pen write down all the money that has come into your household this month - through paychecks, income tax refunds, child support, money on the side from loan repayments, braiding hair, babysitting, any income or generous gifts from friends - add the numbers up. In a second column, with the red pen write down all the money that has to go out - to pay bills, baby sitter, groceries, car notes, car insurance, credit card bills, gas for the car tune ups, bus passes, cab fares etc.

4. Add the green and the red numbers up.

5. Subtract the red from the green; if your green is more than the red then good - you are not in the red; however if you do not have that amount in your savings account than you are not ahead of the game - you are either blowing the money and not knowing it, or saving it under your bed, which means your money is not making money for you - and someone could clip you anytime for your money.

6. Subtract the red from the green; if your green is less than your red than you are like a majority of Americans - and your government - you are in the red. I believe I can help you - and hopefully you too will agree.

Swygert is a credit counselor with the Credit Corner, 9955 South Post Oak#415, Houston, TX, 77004. Call 713/799-8570 for more information.


Take each bill - you know your needs and wants and where you can plan to cut back not cut out - just cut back for example, you have cable a cable bill each month - do you need the extra premium channels no especially if you have not watched ShowTime or HBO this month - think about it if you work a lot or go out to the clubs on that one day a month that you are home - how many times have you called your friend and stated that there was nothing on t.v. About that telephone bill - do you need call forwarding, speed dial 8, call blocker, yes I know it's a package deal but call the telephone company and see iE it can be cheaper and another thing about the telephone bill examine it closely - did you make those long distance the telephone calls and does it appear that you call people more than they call you - I have a solution a stamp its $.37. Remember, I speak from experience I use to have $200-$300 telephone bills and I realized I was calling people more than they were calling me - and they were not sending me to money pay the bill so if my telephone service was cut off they would never know because they never called me anyway. Get a stamp write them a letter. Next what about Credit Card debt are you receiving late fees each month - because the due date falls at a bad time each month on your off pay day or the due date is the same time around you rent and you would rather a late fee on credit card debt and have a place to live. Ok- call the credit card company and change your due date - to a date that makes it convenient for your budget - remember planning. Please do not think this only applies for credit card debt, the telephone company, the cellular phone company will change due dates as well - try it. Ok now it appears we have a lot of work ahead of us so until the next column "Because better credit is just around the corner".