Oh The Ways We Get Into Debt

There seems to be an endless list of ways that we can get ourselves into debt. In the interest of helping others to avoid going into debt, I thought that I would share some of the things that people do that lead them into debt, debt, and more debt. Knowledge is power, and perhaps knowing about these debt traps can help you to avoid them. One way that people get into debt is by doing someone else a favor and co-signing on a loan with them. Sometimes having a co-signer is the only way that that person will be given … Continue reading →

How to Transition From Using Credit Cards to a Cash Based Lifestyle

If you would like to stop using credit cards because you have not been able to use them the way that you had intended to use them, there are some things that you can do to make a transition over to a mostly cash (and debit card) based way of life. You may want to do this sooner rather than later, especially if you have quite a bit of credit card debt. In fact, if you have enough credit card debt that you are having trouble paying, the transition to a cash and debit card based existence may be forced … Continue reading →

Big Bad Bill Collectors Beware

If you dread looking at your called ID every time the phone rings, chances are that you are in debt and you do not want to talk to the bill collectors that are calling (and calling, and calling). Although bill collectors are allowed to call you in an attempt to collect money from you, there are rules that they must follow. Many bill collectors do follow the rules, but some are unscrupulous and use bad business practices to kick you when you’re down. Here’s the scoop on what bill collectors can and cannot do. The Fair Debt Collection Practices Act … Continue reading →

Don’t Pay Off Your House!

I had the most interesting conversation with a lawyer last night. He was telling me and my husband some ways to improve our credit scores and how to prepare for home ownership, and he said something that made both my eyebrows go up. He said that we shouldn’t be in too big of a hurry to pay off a house once we get it. Pretend there are two families, and they each buy a home for $200,000. Family A makes the regular monthly payment, and Family B puts every penny into paying it down faster. Some time goes by, and … Continue reading →

The Debt Snowball – A Good Strategy For Any Season

Over the past few days, a few more inches of snow has fallen where I live. Yesterday while I was outside, I realized that the recent snow is the kind of snow that makes good snowballs. This means that it is a good time to talk about one sensible strategy for getting out of debt – the debt snowball. I first heard about the debt-elimination method called the debt snowball when I read Dave Ramsey’s book, “The Total Money Makeover”. It is an effective method for getting out of debt, and I think that part of its effectiveness is that … Continue reading →

Dealing with Medical Bills Debt

Are you looking for ways to get out of debt? Debt is a common problem. If it’s not enough that you own a house and a car, you may find yourself swimming in medical bills. This has been an ongoing issue in my family. My 11 year old son has had asthma since he was a year old. Fortunately it is not a frequent problem but when it does flair up, it always requires a trip to the emergency room. For some reason his asthma can’t be managed at home and so it requires medical intervention. ER visits are expensive. … Continue reading →

Radical Money Idea: Spend Less Than You Earn

Imagine that it is a long, long time ago. Let’s roll the clock back to the early part of the last century. At that time, material wealth wasn’t nearly as great as it is today. There simply was not as much stuff available as there is now. Yet people did well. In fact, they saved a large portion of their income for a rainy day, anywhere from 10 to 20 percent of that income. They knew that they had to make it on their own, with perhaps a little bit of help from the community. That made this rainy day … Continue reading →

New Debt Relief Rules

There are many tools available to consumers to help them repay their unsecured debt. If your debt load has gotten overwhelming or unmanageable, you’ve probably been looking at ways to get help. I know how oppressive and insurmountable debt feels. Getting out of debt is a lot like losing weight. When you see the entire dollar amount you have to lose to be financially trim and healthy again, you want to throw in the towel and go shopping. Instead of viewing the entire debt load as a whole, break it up into manageable pieces with changes you can make every … Continue reading →

How to Avoid Debt

Yesterday I taught you how to get into debt. These are vital skills, people, vital skills. However, I am sure that we are all too familiar with the many and wonderful ways we can get into debt. Planning to avoid debt is a lot less fun in some ways. It involves fewer consumer habits and more frugal habits. The up side is that you get to spend a lot less time working to try and get what you want, much less time shopping, and a huge amount of time relaxing instead of worrying about your finances. There’s the piecemeal buying. … Continue reading →

How to Get Into Debt

Now, I know that I am pretty good at getting into debt if I don’t think about it. Not serious debt, but mild quantities of the stuff. In the first of this two-part series, here’s how to get into debt, for the record. The first way to get into debt is slowly and piecemeal. If you are going out, don’t bother to pack a lunch. Stop by the corner store instead and pick something up. It’s only a few dollars. You need something for the house? Get it while you are out, right away, in case the need goes away. … Continue reading →