That eats away at resources. One expense O'Grady says you don't want to cut is savings. We want to consider savings a fixed expense. It's not much to begin with, but it creates a pattern of working for their future instead of coping with their past. Debt represents past acquisitions, and it can carry forward for years.
Savings creates a new mentality about their resources.
It says their future is more important than their past. A financial planning expert can help you decide what expenses can be cut or reduced and also assist you in spending your money more wisely. They may have ideas on how to shop for cheaper car insurance, for example. It may take a little work on your part to find them, but a few phone calls to financial planners in your area could get you on the right track. Nan Mead, of the National Endowment for Financial Education in Englewood, Colo., says there's an effort under way to deliver pro bono financial planning to more people.