RG&E and NYSEG's recent rate hike approval will soon be impacting it's customers who are located in the Upstate & Rochester New York area in the coming months. Now is the time to review and evaluate your current household budget to see how that increased heat/electric bill is going to fit in.
Inflation and your budget
Inflation measures the increase in the cost of goods and services, like groceries, energy, healthcare, housing, cars, and more. When these costs go up, the power of the dollar goes down. It’s time to take another look at your budget or create one if you don’t have one. Go over all your finances for each month and apply your monthly income. If you don’t have much in excess, it might be time to start reducing expenses where you can, whether it’s dining out or a streaming service you don’t need.
Paying the bills
Understandably, the idea of paying toward multiple debts can be overwhelming. Talking to a certified credit counselor can help you refine or build your budget, and they can also enroll you in a debt management program.
How does a debt management program (DMP) work?
When you enroll in a DMP, you’ll work with a credit counselor who will help you create a budget to manage your household expenses. They will then talk to your lenders to consolidate your unsecured debt into one monthly payment that’s affordable to your specific situation, as well as reduce your interest rate—usually between 6%–10%—all to be paid off in three to five years.
How can a debt management program help you avoid inflation?
By reducing your payments and interest rates, a DMP can help you not only pay down your unsecured debt, but it will also allow you to afford the increases that have occurred in other areas of your budget putting you in a better place financially.