Which Debt Reduction Strategy is Right for You?

You are committed to doing whatever it takes to get out of debt and remove financial worries from your life. You see a promising future, filled not with stacks of bills or collection calls, but a paid-off home and enough liquid assets to be able to enjoy life and to provide a future for your children. What a wonderful goal and one that could come true with some good choices and perseverance. Gaining financial freedom first starts with getting out of debt, with forming your own debt reduction plan that contains solid and achievable goals. It is do it yourself … Continue reading

DIY Debt Reduction – Multiple Creditors

Most people don’t have one type of credit account. Most of us have our debt spread out in multiple locations. This can often make managing our bills complicated. If you have many different types of credit accounts – loans, lines of credit, credit cards, overdraft accounts – and want to reduce your overall debt, you will need to get organized first. Start with a file folder and put in your most recent balance statements into this folder. Collect them all, even the ones you don’t use often. Next, take this folder to a quiet place. Using a calculator and piece … Continue reading

DIY Credit Card Debt Reduction

Is most of your debt with credit cards? Do you have lots of cards with large balances? Are you having trouble making your minimum payments? Credit card debt is one of the worst kinds of debt. It is considered empty debt, as you often have little to show for it. With a mortgage or car loan, at least you have the house or car. Credit card debt tends to sneak up on you with lots of little purchases. This is especially true these days where almost all businesses accept credit cards. If you want to get out of credit card … Continue reading

Paying off your Mortgage Early

Have you ever considered whether you should try and pay off your mortgage early? Many people have. But, a mortgage is different kind of debt than most… so it is good to evaluate all the advantages and disadvantages before you make that leap. The first consideration is other debt. In almost every case, before you ever consider making extra payments on your mortgage you should first focus on all your other debt. In almost every instance, whether it be a credit card, student loan or car, that debt is costing you more to keep in interest than a mortgage. What … Continue reading

Are You Only Making Your Minimum Monthly Payments?

Are you still paying just the minimums on your credit card payments? If that is all that you can afford to do, then you need to begin immediately to change your financial picture. You are too close to a financial disaster. If you have the extra money, but you are not paying it, then you should step back and look at the bigger picture. Recently the credit card companies have doubled the minimum payment due each month. This will help you to get out of debt much quicker. But if you continue to pay just the minimums you are going … Continue reading

Do You Owe More Than Your Annual Salary?

Are you overwhelmed by your debt? Is your debt, excluding your first mortgage, greater than your annual income? Are you barely able to make the minimum payment on your credit cards? Do you feel like even with an aggressive payment plan, it will take you several years to be debt free? It can be quite frustrating to look at your debt and suddenly realize just how much you really do owe. Just the thought of owing more than you make in a year can be quite daunting. It is important to realize that even those with large amounts of debt … Continue reading

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

Small or Big, where do I watch my pennies?

Should you sweat the big stuff or the small stuff when starting out? What a great question I received from a friend, and I’ll try to answer simply. Both of course. Watch both the pennies and the dollars Ok, but that may be easier said than done – after all, your starting out and want to pull your finances in line, but everything seems so, well, daunting! I’ve written about baby steps to take when you are starting to plan a budget, but what if you have to start even smaller than that to get yourself motivated? Here’s what Hubby … 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