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Saving money ahead of time can avoid future financial problems and the need for debt settlement
By Angela Hawke on Feb 9th, 2010
After agreeing to a debt settlement, many consumers may find that their credits scores are lower, which could make it more difficult to get a credit card.
However, a credit card can be a convenient way for consumers to deal with unexpected expenses. There are other alternatives for dealing with these expenses, including establishing an emergency savings fund.
In a recent posting for CreditCards.com, Todd Ossenfort suggested a number of steps people can take in order to help set up an emergency fund. The first thing consumers should do is not put off setting up such a fund and should budget accordingly.
Budgeting would include reducing unneeded expenses, such as eating out or buying a coffee on the way to work. Another option may be considering getting a job on the side, which can bring in additional income that can be put toward savings.
"Even if it is three to four hours a week at night or on the weekend, the extra income could go a long way to creating that cushion you need, Ossenfort said.
Setting up an emergency fund can be one way consumers avoid needed a more extreme solution, such as debt settlement. Officials in a number of states are taking a closer look at debt settlement while also warning consumers about its potential pitfalls.
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