Adding It All Up–How Much Debt Do You Really Have?

Have you sat down and actually added up how much money you owe to creditors? This can be eye opening to people. You may want to leave out your original mortgage, but if you have a home equity line or second mortgage you should include that amount in your total. This would also include what you owe in student loans, and on your cars. It the number manageable. Is there anyway that you could pay this off in a year? Or is the number higher than what you bring home in a year? Adding up your total debt can be … Continue reading →

Holding off the Creditor and Collection Calls

In debt and over your head? Make sure you open communication with all your creditors. Call them, write them and inform them that you will be paying them off, but that ou need extra time. The key is to initiate the phone call, don’t wait until they have to start calling you. One of the worst mistakes people in debt make is to stop answering the phone calls and ignore the warning collection letters. They start too late to work with the debt collectors. If creditors are calling you, arrange a time when you can talk – away from work … Continue reading →

Can You Borrow Your Way Out of Debt?

Have you considered borrowing your way out of debt? It sounds silly, doesn’t it? You are borrowing money to pay off your debt, so are you actually getting anywhere. Many people justify doing this by explaining that they are moving the money they owe to a lower interest rate loan, so they are saving money. Unfortunately many people do this using a home equity loan. And usually they are transferring unsecured debt (like credit cards) to a secured debt (your house), which means if you cannot pay for some reason you will lose your home. Often times people will not … Continue reading →

Where to start on my debt reduction plan?

How do you set priorities when starting to budget or set up a savings account? Should you pay off debt first? Pay off your home mortgage? Save for emergencies? I think the answer is yes yes and yes, but actually, it depends upon who you ask. Some advisers tell you to pay off your largest debt first, or the debt with the highest interest rate first, and others tell you the opposite, leaving you more befuddled than ever. Perhaps you’ve also heard that you have to get an emergency fund going before you pay off any debt. Who should you … Continue reading →

Baby Steps for Debt Reduction

Are you up to your eyeballs in debt and feel overwhelmed? Welcome to the club. Most of the USA has more debt than they can handle and most of the of population says they are stressed about money at some point or another during their lives. Many people have made a New Year resolution to pay off debt and stick to a budget but don’t know how or where to start. Here’s my easiest baby step list for newbies: 1. Read this blog. There are several writers on the Money Blog that come with different perspectives and tips to help … Continue reading →

Are you Upside Down on Your Car Loan?

Are you upside down on your car loan? When you are upside down on a car loan, it means that you owe more on the loan then you can sell the car for. This happens when you trade in a car for a newer one and the dealership roles your old loan into your new one. It can make it very difficult to get ahead when you make this move. If something were to happen to your car, your insurance would not completely pay off your loan, and so you would need to continue to pay on your old car … Continue reading →

Student Loan Consolidation

You may want to consider student loan consolidation. This option can be a good one if you have a large amount of student loans. Since student loan rates vary you may consider doing this is to lock in the lower interest rates that are available. It is important to consider your options carefully before you make a choice. When you consolidate your loans you are locking in your interest rate. This is good if the interest rates continue to rise, but if the interest rates drop you have locked in the higher rate, and you will not be able to … Continue reading →

Five Tips to Paying off Credit Cards

Paying off a credit card can be a real pain. It seems to take forever! You make the payments every month like clockwork, yet somehow the balance doesn’t seem to decrease – or if it does, it’s only pennies at a time. Maybe the interest rate on your card is way too high, and it feels like you’ll be paying off the card for years to come. Here are five tips to help you pay the card off faster: 1. Call your credit card company and ask them for a lower interest rate. Depending upon your credit rating, you may … Continue reading →

Hi, I’m Michelle and I’m an Overspender

I’ve been a working gal all my life. My first job was at twelve years old helping the neighbor lady in her small grocery store down the road. Every Friday I’d proudly get my paycheck and…. spend it. Years later,as a married woman, I more or less did the same thing. I got my paycheck, and hubby and I spent it. We went out to dinner, to the bars, I got massages, had spa days, and bought new clothes at the trendy spot downtown. Then Hubby and I adopted a little girl and I quit working. Suddenly we found ourselves … Continue reading →

5 Reasons to Payoff Your Loans Early

Many people often wonder why you should payoff your loans early. Often they look at loans as a time commitment and as long as you are making your monthly payments you really do not need to worry about the loans that you have taken out. Paying your loans off early can be a great benefit to you and your family. Here are five reasons to pay off your loans early. 1) You will save money on interest payments. For the average mortgage you end up paying at least as much in interest as you originally borrowed. You end up paying … Continue reading →