Issue link: https://viewer.e-digitaledition.com/i/920837
18 | WINTER 2018 1. Take stock: Make a list of what you pay out each month. Take an honest look at your fi nances and document how much you pay each month toward rent/mortgage, credit cards, student loans, car loans and personal loans. "Either write it down or put it in a spreadsheet. Take all accounts you owe and list how much and what the interest rates are for everything," says Paul Golden, a spokesperson for National Endowment for Financial Education. Golden says you should look at a few months worth of spending including variable spending, too — including seasonal purchases and day-to-day cash expenses — so you have a better picture of what you owe, how you spend your money and how much you pay out each month. If you don't want to do this alone, you can call American Airlines Federal Credit Union or walk into a branch and get a template that helps you along in the assessment process, says Susan Longley, Vice President of Consumer Lending & Account Services at the Credit Union. "Recognizing how you spend your money and that you need to make changes in your spending is important," she says. "Education is a big part of taking back control. We help members build a budget and get them on the path so they understand the diff erence between wants and needs. We help them get what they need and work toward what they want." 2. Plan action: Work with your creditors — and on your self control. If you've been diligent about making minimum payments on time, there's a good chance that if you ask your creditors to lower interest rates or give you a payment plan, they will comply. Some creditors will consolidate multiple debts into one account, and there are also fi xed-rate personal loan consolidation products that do the same, often with lower interest rates and payments. Be cautious, though. These options only work if you don't go back to using credit cards indiscriminately once you've consolidated balances. Another smart option: Vow to pay new balances off at the end of each month. "Many times people will roll everything into one account and then start charging again on those cards with zero balances," says Golden. "If you have a problem with spending, chances are you're going to get into trouble again."