Do you ever get tired of being frugal so you can pay off a debt? Check out these 12 tips to help you stay motivated to get out of debt. I'm the type of person that gets super excited and gung ho at the beginning of a project. I can't wait to get started and live and breathe the project. However, as time goes on, I tend to lose my excitement. And as I lose excitement, my motivation to complete the project wavers. How about you? Does this happen to you … [Read more...]
We all know that life would be so much better if we weren't carrying debt. Wouldn't it be nice to pay off your debt as quickly as possible? If that sounds like something you'd love to do, keep reading. Whether you begin by forcing yourself to stop using credit or consolidate, you can pay off debt quickly. Stop Charging First things first. You want to stop charging your purchases. The more you put on your credit cards, the more interest you'll pay. Also, you'll never pay off debt if you keep … [Read more...]
There are a number of reasons you may find yourself in a lot of debt with little income. You may have made poor decisions as a young adult or you may have gone from a dual to single income household. Regardless, it can be difficult to get out of debt on a low income, but not impossible. Whether you stop utilizing debt or focus on one debt at a time, you can conquer your debt. Stop Utilizing Credit First things first. You want to stop using credit cards. If you find yourself using credit cards … [Read more...]
You're working hard to pay off your debt, but are you doing the right thing? Unfortunately, many people make big mistakes that can cost them a lot of money. Whether it's paying only the minimum due or not exploring all of your options, you want to avoid the mistakes people make when paying off debt. Paying Only the Minimum Payment You're paying your bill each and every month, but don't seem to be getting anywhere. The reason may be that you're only paying the minimum amount due. In … [Read more...]
Did you know that you could be paying hundreds or even thousands more than you have to on your debt? Whether it's a credit card with insane interest rates or a personal loan you needed when your credit wasn't so great, you could greatly cut the costs. Use the Snowball System Some financial experts recommend paying off the high-interest cards first. However, Dave Ramsey, suggests the snowball method and it really does make sense. Once you pay off your low interest cards, you have even more … [Read more...]
While we can’t perform a magic trick to pay off our credit card debt, there are things we can do to make it easier. Whether it’s coming up with more money or consolidating, you can pay off credit card debt once and for all. Let’s look at tricks to pay off credit card debt. Be Realistic About What You Owe You may have a rough idea of what you owe, but you need to know the exact amount. This will give you an idea of how much you need to pay each month to get out of debt at a certain … [Read more...]
Credit card debt is one of the most difficult financial situations to deal with. It’s something that can keep you up at night and hangs over you, weighing you down. However, that doesn’t mean you can just do anything to get out of debt. Here are just a few ways NOT to pay off credit card debt. Taking Out a Payday Loan If you’ve gotten behind on credit card debt, you may think that going with a payday loan is the answer. It’s not. In fact, you’ll find yourself in an even worse position. The … [Read more...]
Things were going so well and then you slipped. You started focusing on the things you wanted right now and either spent money that should have been used on debt or charged those items. It's okay. It happens. The important thing is that you're ready to get back on track. Let's look at how to get back on track for paying off debt. Remind Yourself Why You Want to Get Out of Debt It can be so easy to just keep charging purchases and getting instant gratification, but how well do you sleep at … [Read more...]
Chances are you're regretting your choice to take out student loans. Many people do. Unfortunately, student loans are often necessary to pay for a higher education. While you could be stuck with the debt for over a decade, there are tricks to pay off student debt quickly. Let's take a closer look. Start NOW First things first. If you're still in college, don't wait until after you graduate to start paying on your student loans. Take a part-time job and start putting as much of your check as … [Read more...]
You're on the right track. You've decided to tackle your debt once and for all. What should you avoid? Whether it's being late on payments or continuing to use credit cards, there are mistakes you don't want to make when paying off debt. Let's take a closer look. Being Late on Payments One of the worst things you can do is to be late when making payments. Late charges can be $30 or more each time that you're late. This can really add up. You want to make sure that you're paying your bills on … [Read more...]
So, you've figured out how much you owe. That's a great start (and getting started is half the battle!). The next step is to put together a plan to start paying off your debt. Two Schools of Thought for Debt Repayment: There are two schools of thought for how to pay back your debt. Both have their pros and cons, and it's really up to you and what you think will work best for you to decide which way to pay down your debt. Start with the Smallest Debt First: Dave Ramsey argues that you … [Read more...]
Buying a new vehicle is a big-ticket item, and in most parts of the country, it's necessary to have at least one car per household to get to work, school, shopping, and more. For many people, it's just a fact of life that you'll have a car loan, same as you have a mortgage. However, while a house (usually) appreciates, a car starts depreciating the second you drive it off the lot. Do you really want to take out a loan on an asset that's losing value? But, it's impossible … [Read more...]
A goal that many of us have is to get out of debt once and for all. It seems like it's impossible at times, but it can be done. There are steps you need to follow and decisions that need to be made. However, you can create a get out of debt plan that works for you. Identify Your Debt You know you have debt, but if you haven't created a play to pay it off yet, you may not know quite how much debt you have accumulated. Write down each and every debt that you owe - from credit cards, to … [Read more...]
Perhaps you'd love to make a change and start working your way from under credit card debt, student loan debt, your auto loan, or your mortgage, but you're living paycheck to paycheck and just don't see where that extra money is going to come from to pay everything off. You may feel overwhelmed and feel like it's just easier to continue living how you're living rather than make any change since it's not likely to make a difference. But that's not true! Starting with anything is better … [Read more...]
For most people, having a mortgage payment is just a fact of life. But, think of what you could do with your money if you could eliminate that debt earlier! Here are 7 tips on paying off your mortgage early Add extra money to your payments Even if you can only add an extra $10 extra towards your principal, try to add any extra money that you can onto your mortgage payment. You can use a mortgage calculator to see what the effects are to the payoff date by adding extra … [Read more...]
Each and every day, the phone is ringing off the hook. You're scared and too overwhelmed to answer it because it might be a debt collector. You know you don't have the money to pay the bills you've fallen behind on – the minimum due is well above what you can afford. However, continuing to ignore the situation won't make it go away. Here's how to negotiate with debt collectors. Be Prepared to Explain Your Situation First things first. We all have situations that cause us to get behind … [Read more...]
You may think that your low household income will prevent you from getting out of debt. It can seem impossible to pay all your bills and ever make headway. The good news is there are ways to finally climb that mountain and get out of debt once and for all. Let's take a closer look at how to get out of debt on a low income. Stop Using Credit This may seem obvious, but every time you charge something, you're making it that much harder to get out of debt. It doesn't matter if it's something small … [Read more...]
Buying a home is the American dream. Who doesn’t want a place to call their own and to invest in their future rather than someone else’s? But before you rush out and start hunting for the perfect house, you need to consider your finances. Let’s take a closer look at why you should be debt-free before you buy a house. You Need to Learn to Be Financially Responsible Just because you carry debt doesn’t mean you’re not financially responsible. How you got into debt determines that. If you’re the … [Read more...]
When you have credit card debt, it can consume your every thought causing you to lose sleep. And if you happen to get behind on your payments, the stress can seem insurmountable! Things my seem hopeless, but they don't have to be. Check out these 5 tricks for how to take control of credit card debt. Stop Charging Doesn’t matter what you think you need to pay with your credit cards. Cut the cards up or do something else that prevents you from using them (like freezing them … [Read more...]
How do they do it? How do people go through life debt-free? For many of us, it may seem impossible. However, people do it all the time. What do they do that might be different from what you're doing? Let's take a closer look at the habits of debt-free people. Having More Than One Emergency Account We all know that an emergency account is important. However, people that are debt-free know that it's important to have accounts for different things. They may have an emergency account for health … [Read more...]
Debt stress can cause you to lay awake at night feeling overwhelmed and anxious. The thought of not being able to pay your bills can turn your stomach and leave you living in fear. What can creditors do to you? Will you lose your home? Will they garnish your paycheck? Stop living in fear. Let’s look at how to reduce debt stress. Know the Laws You need to know what a creditor can do to you based on the state you live in. For example, in some states, creditors can garnish your paycheck and in … [Read more...]
That day has finally come. You got the raise you’d been hoping for. But before you rush out and purchase a new car or house, maybe you should consider how this raise could really help your finances. So many people live above their means or at least live just slightly within budget. Instead of applying that raise to a luxury item, let’s look at how you should use a pay raise. Increase Your 401(k) Contributions The sad reality is that a pay raise means paying more in taxes. It may even throw … [Read more...]
Debt is one of those things that can keep you up at night. Day after day, bills and late notices are coming in. You probably get calls on a regular basis from debt collectors. It’s the type of thing that can cause enough stress to make you physically ill. It’s time to step back and catch your breath. You may be drowning in debt but it’s not the end. Remind Yourself of What Can and Can’t Happen What’s the absolute worst thing that can happen if you can’t pay your bills? The absolute worst? … [Read more...]
If you live from paycheck to paycheck, the thought of saving money for an emergency fund or paying cash for a vacation may seem impossible. But, it's really not with these tips on how to save money when your budget is tight: Just Get Started It may seem overwhelming when you really think you have nothing extra, but just do something to get started. That's often the hardest step - overcoming your fear that you can't do it or it won't work. Create and Stick to a Budget Unless you are … [Read more...]
Student loan debt is not something you need to deal with in life. There are ways to attend college without going into debt. Whether you apply for grants and scholarships or take classes online, you can avoid student loan debt when paying for college. Apply for Grants and Scholarships It can be time-consuming, but every student (and their parents) should take the time to fill out the FAFSA form. This form can be sent to a number of different colleges. This form can be used to show financial … [Read more...]
Chances are you’ve heard of the option of paying your mortgage biweekly. The option sounds good, but is it really worth your time? Before you decide on this option with your bank, you need to know a few things. Let’s take a closer look at whether or not you should make biweekly mortgage payments. How Does the Bank Handle This Type of Loan? In many cases, when you sign up for a biweekly mortgage, the bank holds your first payment until the second arrives. In other words, you’re still just … [Read more...]
Are you buying beans and rice or even Ramen Noodles to help you make it through until you get paid? Is your gas light always on and you’re praying you’ll have enough gas for one more day of work? This has to stop. Living paycheck to paycheck is not only difficult, but it’s a stressful situation that can lead to health problems. Let’s look at how to break out of the cycle of living paycheck to paycheck. Know Where Your Money Goes First things first. Where is your money going each month? For … [Read more...]
Debt is one of the most stressful things when it comes to finances. What’s worse is that we’re led to believe a number of things about debt that simply aren’t true. You may believe that everyone has some form of debt or that credit cards provide security. Let’s look at some of the lies about debt you believe. Everyone Has Some Form of Debt Everyone has some form of debt, right? Wrong. There are those that have worked and saved hard to buy everything they own, including their car and even … [Read more...]
Many of us have come to see debt as a way of life. Chances are your parents carried debt, but they may not have explained the stress involved or the extra hours worked just to stay afloat. The truth is that while many people do live in debt, it’s not something you must do. Let’s take a closer look at some reasons you should avoid debt. You Never Know What’s Going to Happen No one knows what’s around the corner. It may be unemployment, illness, or even a natural disaster. The truth is there … [Read more...]
It can be scary and unsettling to start receiving calls from debt collection companies, especially when you’re broke. You have no idea what to do and just want to stick your head in the sand and pretend like it's not happening. Even if you do choose to answer the phone, some debt collectors can harass you, leaving you scared to answer your phone ever again. Let’s look at some tips to deal with debt collectors. Pull Your Head Out of the Sand You want to address the situation as soon as … [Read more...]
Each month you pay your bills on time and always feel that you're not making any progress. Debt can be overwhelming and it can feel as though you're drowning in debt. Instead of simply paying your bills each month, you need a strategy. Not every strategy works for every situation, but you can find one that works for you. Let's look at some secrets to getting out of debt. Make a Budget and Cut Expenses to the Bare Minimum The first key to getting out of debt is to get on a written plan (that … [Read more...]
We all go through times when our income is drastically reduced. Your hours may have got cut or you may have lost your job. If you don't have much money in savings, you may find that you can't pay all your bills. This can cause you to panic, but there are things you can do. Whether you seek out financial assistance or reach out to creditors, you cave survive if you can't pay all your bills. Get Financial Assistance First things first. You want to look for any financial assistance available … [Read more...]
You've worked so hard to get out of debt. The last thing you want to do is create more debt that will weigh you down. So, how do you avoid getting back into debt? The truth is it requires a bit of work. Whether it means saving for the things you want or only charging items that can be paid off immediately, there are ways to avoid getting back into debt. Follow Your Budget You got out of debt by creating a monthly budget and following it, and you'll stay out of debt by continuing to create … [Read more...]
My father always told me not to marry someone who was in debt. In reality, it was me who brought debt to our marriage. And it was no small number - $35,000 in student loan debt. Perhaps in hindsight, I shouldn't have gone to grad school and racked up the student loans. But, who knew that I would meet my husband shortly after grad school and have my first son several years later. We wanted me to stay home with any children that we had. But, that would not be possible with student loan … [Read more...]
The first step to getting help with your finances is admitting you have a problem. The next step is creating a working budget to help you get out of your financial mess. But, once you have a budget, many people are frozen with indecision - not knowing which next step to take. What should they do first with any extra money in the budget - save for their emergency fund or pay down debt? There are varying opinions on this issues, but in my opinion you need to start with at least a small … [Read more...]
One of the biggest mistakes people make is to live above their means. This is when you spend more than you’re bringing in. This can lead to massive debt and an unhealthy relationship with money. Thankfully, it doesn’t have to be this way. There are ways to live below your means (so you can save money or pay off debt) without feeling deprived. Cut Unnecessary Expenses First things first. Go through your bank statements and see what you’re wasting money on. It might be a gym membership … [Read more...]
When it comes to spring cleaning, you may think about your garage or even your closet. What you may not consider is your finances. When’s the last time you really took a good look at them? What if you could get a better interest rate or cut reoccurring bills to save money? While you’re cleaning the windows and tossing out old clothes, now is also the perfect time to spring clean your finances and get your financial house in order. Review Your Financial Goals Has your financial … [Read more...]
It can be hard to save money (whether it's your emergency fund, paying cash for Christmas, or saving for your next car) and pay off debt. You might feel overwhelmed with all your current expenses and feel like you don't have anything extra to save for the future. However, here's one easy trick to help you save money towards your goal - save your change! If you add an average of $0.50 in change to your change jar every day for a year, you'll have $182.50 saved without … [Read more...]
Does a recession have to mean that your family will suffer financially? Not necessarily. There are things you can do to help protect yourself from problems and survive a recession. Whether you pay closer attention to where your money goes each month or build up your savings account, you can remain financially stable. Let’s take a closer look at how to keep a recession from wrecking your finances. Don't Panic If you lose your income or your investments seem like they're dipping ever … [Read more...]
While we may live in a debit card world, we still end up with spare change. Chances are you have a pile of it somewhere in your house or even in your car. While you may not really think about it that change can really add up. Whether you save it throughout the year for Christmas gifts or use it to pay down debt, there are things to do with your spare change. Save for Christmas Christmas is always so, so expensive. But, that spare change you never think about could help you cover some of the … [Read more...]
