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ABCs of Money Matters:Debt Consolidation

Ron: Uh, could I borrow a fewbucksuntil payday? I'm a little strapped for cash.Nancy:Uh, yeah, I guess, but I'mpinching penniesmyself, and you still owe me !" from last

week. #nd mom and your friend Ron said you borrowed money from them this pastweek. $%h, yeah.& ow #R( things going anyway?Ron: )ell, not *ery well. +o be honest, I'm really in the hole, and I can't seem tomakeends meetthese days.Nancy: )hat do you mean? I thought you landeda great ob recently, so you must beloaded.Ron: )ell, I do ha*e a ob, but I'*e used my credit cards to pay off a lot of things recently,but now, I can't seem to pay the money off.Nancy: Uh, do you ha*e abudget? I mean, how do you keep track ofyour income ande-penses?Ron: )ell, when my money runs out,I come to you. %f course. $reat/& No, but I guess I

should ha*e some financial plan.Nancy: )ell, let me see if I can help you. ow much money do you spend on yourapartment?Ron: Uh, I pay 01" on rent for thestudioapartment downtown . . . not includingutilitiesand cable +2. 3ut the place has an awesome *iew of the city.Nancy: Uh, 01"/ )hy are youpaying through the nosefor such a small place when youcould find a cheaper one somewhere outside of the downtown area?Ron: 4eah, I guess.Nancy: %kay. ow much money do you spend on food a month?Ron: mmm. I'm not really sure. I think I spend around 5"". $5""?/& )ell, I go out toeat at least four times a week, so those e-penses add up. I ust don't enoy eating alone,

and I don't ha*e a knackfor cooking like you do.Nancy: )ell, I can understand that, but perhaps you ought to buy some microwa*eablemeals you could prepare at home.Ron: )ell, I guess I could.Nancy: #nd entertainment?Ron: )ell, I spend a few dollars here and there on basketball and mo*ie tickets, a concertor two, and ballroom dance lessons.Nancy: Uh, e-actly how much do you spend on all of these? 6ust a 7few7 dollars?Ron: )ell, oh . . . about 8"" or so.Nancy: %r so? No wonder you're ha*ing money problems. 4ou can't ustblowyourmoney on things like that/ #nd what about transportation?

Ron: %h, I commuteto work e*eryday in my new sports car, but I got a great deal, andmy monthly payments are only 89". ome outside and take a look. )e can go for aspin/Nancy: No, I'*e heard enough. 4ou'*e got to curbyour spending, or you'll end upbroke. Isuggest you get rid ofyour credit cards,cut back onyour entertainment e-penses, and sellyour car. +ake public transportation from now on.Ron: ;ell my car?/ I can't date without a car. )hat am I going to say? 7Uh, could youmeet me downtown at the bus stop at

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Nancy: #nd you need to create a budget for yourself and stick toit, and start with payingoff your bills, starting with me. 4ou owe me 9" dollars.Ron: =ifty dollars/ )ait, I only borrowed !" from you last week. ow did you come upwith 9"?Nancy: =inancial consulting fees. >y ad*ice is at least worth "/

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