Want to pay off debt quickly, but don't know where the extra money will come from? Instead of trying to earn more money to pay off debt, what if you could save money by cutting costs in places you'd least expect?
Here are a few little-known ways to save money to pay off debt.
==> Explore Other Energy and Water Companies
In any residential area, there are usually just one or two energy companies that are heavily marketed. However, that doesn't necessarily mean they have the best or the cheapest service.
Changing power companies isn't difficult, due to anti-monopoly laws. If you find a cheaper company with a good reputation to go with, making the switch can be as simple as making a phone call.
You can save as much as 30% off your utility bills just by making this switch.
==> Disconnect Your LAN Line
If everyone in the house has a cell phone, do you really need that home LAN line? That's an easy $15 to $30 a month you can immediately put towards your debt payments.
==> Buy Generic Products
Is "Kleenex" really that much better than "Generic Tissue?" Is "Kellogg's" better than "Cornflakes?" Is "Colgate" better than "Toothpaste?"
Instead of buying branded products, you can often save as much as half of a product's costs by buying generic brand products.
If you make it a habit to just buy generic products, you can easily save $200 or more a month that can go straight towards lowering your debt payments.
==> Saving on Drinks
If you drink coffee, instead of spending that $3 to $4 on Starbucks, why not just make your own? Your coffee will cost perhaps $0.50 per cup instead.
If you drink soda regularly, avoid the vending machines. Instead, buy your cola in bulk from the supermarkets. This can cut your costs by as much as half to a third.
==> Make One Shopping Trip a Week
Most people make two or three shopping trips a week. That can easily be cut down into just one trip, however.
Have the whole family keep a shopping list. Have it posted on the fridge so everyone can just add anything they need from the store. Once a week, buy everything that's on the list.
This helps save a lot of money on gas. It also prevents things from piling up, especially perishable items. Finally, it saves time.
These are just a few of the many ways you can cut your costs to raise more money that can go towards paying off your debts. Remember that every dollar you save and put towards paying off debts is money multiplied. Applying just one or two of these techniques could make the difference between financial difficulty and smoothly paying off your debts.
Tuesday, July 29, 2014
Sunday, July 27, 2014
5 tips to put you in control of your debt
Admitting your debt situation is the first step to a better financial, emotional and personal life going forward, says debt expert Moeshfieka Botha.
Tuesday, July 22, 2014
Debt Control Tips To Try Before Seeking Professional Help
Going to a debt consolidation agency should be avoided if at all possible. Millions of people all around the world who were in debt manage to climb out of debt - without the help of such agencies. Here are some techniques you can and should try before resorting to debt consolidation.
==> Cut Up Your Credit Cards
Before you embark on any journey to reduce your debt, you need to first stop adding to your debt. From this point on, commit to not spending any money you haven't already made.
Cut up all of your credit cards. If you really must keep one card just in case an emergency comes up, give it to a family member instead.
Instruct them not to give you the card unless you explain the emergency to them and why you really need to take out that extra cash. Apart from real emergencies, from now on you only spend money you've made.
==> Use Cash Budgeting
Make a monthly budget that's significantly less than your total income.
At the beginning of every week, take out the same amount of cash as you've budgeted for the week.
Throughout the week, resolve not to take out any more cash. Don't use your debit card either.
This makes budgeting much more powerful. You can't go over budget, because your budget is being held in cold, hard cash.
==> Use the Debt Snowball Method
The debt snowball method involves paying off your credit cards one at a time, starting with the smallest amount (rather than the highest interest).
Once that amount has been paid off, you can add the amount that used to be the minimum payment on that card to paying off the next card.
Always, always, always pay more than the minimum balance.
==> Use EBay to Take a Chunk Off Your Debt
One great way to kick-start your debt relief program is to raise some extra cash on eBay.
Take a walk through your house, including the garage, the attic and any other storage area. Take an inventory of everything you actually have.
If something hasn't been used in six months or more, sell it. You can sell just about anything on eBay. Some items won't fetch much, but you might be surprised at how much you can get once you put a whole batch of items up for auction.
Put all the money you raise towards paying off your debt.
These are a few things to try before seeking professional help. Doing it yourself is always cheaper and better for your credit than having someone else do it for you. If all else fails, however, seeking professional help is still often a better option than filing for bankruptcy.
==> Cut Up Your Credit Cards
Before you embark on any journey to reduce your debt, you need to first stop adding to your debt. From this point on, commit to not spending any money you haven't already made.
Cut up all of your credit cards. If you really must keep one card just in case an emergency comes up, give it to a family member instead.
Instruct them not to give you the card unless you explain the emergency to them and why you really need to take out that extra cash. Apart from real emergencies, from now on you only spend money you've made.
==> Use Cash Budgeting
Make a monthly budget that's significantly less than your total income.
At the beginning of every week, take out the same amount of cash as you've budgeted for the week.
Throughout the week, resolve not to take out any more cash. Don't use your debit card either.
This makes budgeting much more powerful. You can't go over budget, because your budget is being held in cold, hard cash.
==> Use the Debt Snowball Method
The debt snowball method involves paying off your credit cards one at a time, starting with the smallest amount (rather than the highest interest).
Once that amount has been paid off, you can add the amount that used to be the minimum payment on that card to paying off the next card.
Always, always, always pay more than the minimum balance.
==> Use EBay to Take a Chunk Off Your Debt
One great way to kick-start your debt relief program is to raise some extra cash on eBay.
Take a walk through your house, including the garage, the attic and any other storage area. Take an inventory of everything you actually have.
If something hasn't been used in six months or more, sell it. You can sell just about anything on eBay. Some items won't fetch much, but you might be surprised at how much you can get once you put a whole batch of items up for auction.
Put all the money you raise towards paying off your debt.
These are a few things to try before seeking professional help. Doing it yourself is always cheaper and better for your credit than having someone else do it for you. If all else fails, however, seeking professional help is still often a better option than filing for bankruptcy.
Wednesday, July 16, 2014
How I Changed my Spending Habits
Hi! A couple of you have asked me how to control the urge to shop. The act of decluttering is often easier than keeping new stuff from coming in. Here are so...
SECRET CONSTITUTION HUDES WONT MENTION - GUN CONTROL - PUBLIC DEBT ENSLAVEMENT
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Tuesday, July 15, 2014
What is Better - Debt Relief or Bankruptsy
Is debt relief a better option than bankruptcy if you're having financial woes? There are strong arguments for both sides. There's actually no hard and fast answer to the issue. It depends entirely upon your own financial situation. These are some of the most important things to consider.
==> The Pros and Cons of Bankruptcy
The main major benefit of bankruptcy is that you essentially owe nothing if it's done correctly. You just walk away.
With debt settlement, you still have to cut a sizeable check every month to the consolidation company. With bankruptcy, however, you just don't have to pay anymore.
On the other hand, a bankruptcy will knock your credit score down by 200 to 250 points, turning any credit score into a rock bottom score.
By contrast, debt consolidation which is usually reported by creditors as "Settled" on your credit report will generally only impact your score by about 50 points.
The score isn't the only thing. Future creditors who see a bankruptcy on your report will know you essentially walked away from debt commitments. They're much less likely to trust you in the future.
==> The Pros and Cons of Debt Consolidation
The main drawback of debt consolidation as opposed to bankruptcy is that you're not actually out of your payments. You still have to pay back your debts, albeit a smaller amount.
One huge benefit of debt consolidation over bankruptcy is that it can address many other kinds of debt that bankruptcy can't get rid of, including child support or alimony.
With debt consolidation, if you're working with a credible company, you'll also have someone to take you by the hand and walk you through the debt repayment process.
One of the main things you need to ask yourself before starting any kind of debt relief program is whether or not you can really realistically stick through the program.
Although there are no nationally verifiable statistics on debt relief follow-through rates, many estimate the dropout rate to be around 45%.
In other words, these are people who'll spend months or years going through the process of paying off debt and then end up throwing in the towel anyway.
This ends up costing them a lot of money and delays the recovery of their credit rating.
Debt relief may very well be a better option, but only if you can realistically stick to the plan. If you can't afford to pay even a reduced monthly amount, then you may be better off filing for bankruptcy.
As you can tell, there are a lot of factors that go into weighing this decision. For some, the right direction to go is to wipe their debt clean. For others, that might not even be possible due to the nature of their debt. If you need help making the decision, don't be afraid to ask for a professional opinion.
==> The Pros and Cons of Bankruptcy
The main major benefit of bankruptcy is that you essentially owe nothing if it's done correctly. You just walk away.
With debt settlement, you still have to cut a sizeable check every month to the consolidation company. With bankruptcy, however, you just don't have to pay anymore.
On the other hand, a bankruptcy will knock your credit score down by 200 to 250 points, turning any credit score into a rock bottom score.
By contrast, debt consolidation which is usually reported by creditors as "Settled" on your credit report will generally only impact your score by about 50 points.
The score isn't the only thing. Future creditors who see a bankruptcy on your report will know you essentially walked away from debt commitments. They're much less likely to trust you in the future.
==> The Pros and Cons of Debt Consolidation
The main drawback of debt consolidation as opposed to bankruptcy is that you're not actually out of your payments. You still have to pay back your debts, albeit a smaller amount.
One huge benefit of debt consolidation over bankruptcy is that it can address many other kinds of debt that bankruptcy can't get rid of, including child support or alimony.
With debt consolidation, if you're working with a credible company, you'll also have someone to take you by the hand and walk you through the debt repayment process.
One of the main things you need to ask yourself before starting any kind of debt relief program is whether or not you can really realistically stick through the program.
Although there are no nationally verifiable statistics on debt relief follow-through rates, many estimate the dropout rate to be around 45%.
In other words, these are people who'll spend months or years going through the process of paying off debt and then end up throwing in the towel anyway.
This ends up costing them a lot of money and delays the recovery of their credit rating.
Debt relief may very well be a better option, but only if you can realistically stick to the plan. If you can't afford to pay even a reduced monthly amount, then you may be better off filing for bankruptcy.
As you can tell, there are a lot of factors that go into weighing this decision. For some, the right direction to go is to wipe their debt clean. For others, that might not even be possible due to the nature of their debt. If you need help making the decision, don't be afraid to ask for a professional opinion.
Friday, July 11, 2014
Tax Debt Control
In a tough economy, one organization a lot of people end up owning a lot of money to is none other than the government. Owing more taxes than you can afford is an incredibly stressful position to be in. Fortunately, there are a number of different options you can take.
==> Asking for a Payment Plan
You don't have to pay all your taxes back in full if you can prove to the IRS that you simply can't afford it.
It's called the IRS Form 9465, which is basically an application to the IRS telling them you can't afford to pay all your taxes right now.
You'll still pay them in full, but you pay them off in an installment plan instead. You outline the details of the plan in your form.
For the maximum chances of getting your plan approved, work with a tax professional to write your Form 9465.
Before you file your Form 9465, try to pay off as much of your taxes with a lump sum as possible. Explore all tax cuts and tax write-offs possible and get your total tax amount as low as you can.
The IRS is willing to work with citizens, but it wants to see that you're making a real effort and not just trying to get away with paying less or paying later.
==> When Will the IRS Forgive Your Debt?
There are a few circumstances under which the IRS is willing to simply forgive your debt.
For one, if your total net worth falls significantly under your total debt, you have a good chance of getting your taxes forgiven.
In other words, if your total assets, including cash, stocks, retirement funds, home equity, etc all add up to $100,000 and you owe the IRS $150,000, then you have a good chance of having your taxes forgiven.
Also, if much of your debt comes from real estate or mortgage debt, you might qualify for debt relief under the Mortgage Debt Forgiveness Act of 2007.
Apart from these two conditions, the IRS is rather strict on getting paid. The only other real alternative is bankruptcy, which can often wipe out all your tax debt.
Of course, a bankruptcy is a real black mark on your credit report and should only be used as a last resort.
If you're having trouble paying the IRS, first talk to a qualified tax professional to explore all your options. Get your tax bill as low as possible through cuts and write-offs, then see if an installment plan is realistic.
If that isn't going to work, then explore whatever avenues you can to get the taxes forgiven. If you really have no other alternative, then and only then should you consider bankruptcy. However, no matter what you choose, the IRS is the one creditor whose debt you really can't just ignore.
==> Asking for a Payment Plan
You don't have to pay all your taxes back in full if you can prove to the IRS that you simply can't afford it.
It's called the IRS Form 9465, which is basically an application to the IRS telling them you can't afford to pay all your taxes right now.
You'll still pay them in full, but you pay them off in an installment plan instead. You outline the details of the plan in your form.
For the maximum chances of getting your plan approved, work with a tax professional to write your Form 9465.
Before you file your Form 9465, try to pay off as much of your taxes with a lump sum as possible. Explore all tax cuts and tax write-offs possible and get your total tax amount as low as you can.
The IRS is willing to work with citizens, but it wants to see that you're making a real effort and not just trying to get away with paying less or paying later.
==> When Will the IRS Forgive Your Debt?
There are a few circumstances under which the IRS is willing to simply forgive your debt.
For one, if your total net worth falls significantly under your total debt, you have a good chance of getting your taxes forgiven.
In other words, if your total assets, including cash, stocks, retirement funds, home equity, etc all add up to $100,000 and you owe the IRS $150,000, then you have a good chance of having your taxes forgiven.
Also, if much of your debt comes from real estate or mortgage debt, you might qualify for debt relief under the Mortgage Debt Forgiveness Act of 2007.
Apart from these two conditions, the IRS is rather strict on getting paid. The only other real alternative is bankruptcy, which can often wipe out all your tax debt.
Of course, a bankruptcy is a real black mark on your credit report and should only be used as a last resort.
If you're having trouble paying the IRS, first talk to a qualified tax professional to explore all your options. Get your tax bill as low as possible through cuts and write-offs, then see if an installment plan is realistic.
If that isn't going to work, then explore whatever avenues you can to get the taxes forgiven. If you really have no other alternative, then and only then should you consider bankruptcy. However, no matter what you choose, the IRS is the one creditor whose debt you really can't just ignore.
Wednesday, July 9, 2014
Three Ways to Tell if You Need to Consider Debt Relief
When is it time to stop trying to pay off your debts all on your own and instead to seek professional help? There's so much stigma around seeking help with your debt that it can be hard to know when that time has come.
Here are three signs that it might be time to look for outside help with your debt situation.
==> You Can't Make Even the Minimum Payments
Once you get to the point where your debt has built up so much that you can't even pay off the minimum amount on each of your debt accounts, then it's seriously time to look into your debt relief options.
A lot of people will continue to try and pay off their bills on their own, when it's really just not realistic. This fact is often obscured by the fact that different bills come at different times, so it's easier for people to convince themselves that they'll be able to pay that next bill.
But if you add up all the monthly minimum payments all in one place and look at it objectively, you'll get a much clearer picture. If you can't realistically afford to pay the monthly payments for the next six months, then you might want to consider professional help.
==> You're Digging a Deeper Hole
If the amount you owe to your creditors is growing rather than shrinking every month, then you have a serious problem. If you can't resolve that issue within the next few months, then it's time to consider other options.
One common reason people get into more and more debt is because their credit bills are so high that in order to meet the minimum payments, they need to take out even more debt for everyday expenses.
This is a sure-fire path to credit and financial ruin. Rather than following that path to completion, seek professional help.
These are three signs that your finances are deteriorating and that it might be time to talk to someone who can help. Most debt professionals will be happy to have a conversation with you about your options free of cost.
==> You've Lost Track of How Much You Owe
If you owe mortgage debt, credit card debts, auto debts, tax debts, personal loan debts and so on and so forth to the point where you don't even know how much money you actually owe, then it's probably time to look for some help.
Without knowing where you actually stand with your debt, you have just about no chance of getting rid of your debt. The very first step of clearing your debt is knowing how much you owe.
If you can't quantify your debt, chances are it's time to seek professional help.
Here are three signs that it might be time to look for outside help with your debt situation.
==> You Can't Make Even the Minimum Payments
Once you get to the point where your debt has built up so much that you can't even pay off the minimum amount on each of your debt accounts, then it's seriously time to look into your debt relief options.
A lot of people will continue to try and pay off their bills on their own, when it's really just not realistic. This fact is often obscured by the fact that different bills come at different times, so it's easier for people to convince themselves that they'll be able to pay that next bill.
But if you add up all the monthly minimum payments all in one place and look at it objectively, you'll get a much clearer picture. If you can't realistically afford to pay the monthly payments for the next six months, then you might want to consider professional help.
==> You're Digging a Deeper Hole
If the amount you owe to your creditors is growing rather than shrinking every month, then you have a serious problem. If you can't resolve that issue within the next few months, then it's time to consider other options.
One common reason people get into more and more debt is because their credit bills are so high that in order to meet the minimum payments, they need to take out even more debt for everyday expenses.
This is a sure-fire path to credit and financial ruin. Rather than following that path to completion, seek professional help.
These are three signs that your finances are deteriorating and that it might be time to talk to someone who can help. Most debt professionals will be happy to have a conversation with you about your options free of cost.
==> You've Lost Track of How Much You Owe
If you owe mortgage debt, credit card debts, auto debts, tax debts, personal loan debts and so on and so forth to the point where you don't even know how much money you actually owe, then it's probably time to look for some help.
Without knowing where you actually stand with your debt, you have just about no chance of getting rid of your debt. The very first step of clearing your debt is knowing how much you owe.
If you can't quantify your debt, chances are it's time to seek professional help.
Colorado Debt Relief Experts You CAN Have A 720 Credit Score Even After Bankruptcy
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Tuesday, July 8, 2014
Controlling Your Holiday Spending - Good Company
For the next holiday season, make a smart shopping plan! CEFCU Credit Manager, Mark Priess, joins Good Company with tips on how to control your holiday spend...
Learn To Evaluate Debt Control Companies
The debt control field is riddled with scams and companies who are more interested in taking your money than helping you get rid of debt. How do you actually find a debt control company who can help you?
Follow the following tips and you'll have a much better chance of finding a great debt control program to work with.
==> Work with a Non-Profit Debt Control Company
Non-profit debt control companies are much less likely to be just out to make a buck. In fact, many of them were founded because they wanted to create a more helpful system than the one that currently existed.
Keep in mind that just because the company is not for profit does not mean it's free. You still have to pay for their services. They still have to make enough money to pay for their staff, their facilities and other operational costs.
Make sure you either ask the company to see their 501(c)(3) certification or call the IRS directly to verify their 501(c)(3) status.
There are several debt consolidation companies that aren't non-profits who claim to be so. Don't take non-profit claims at face value without verifying it.
==> Research Complaints and Accreditations
Check the National Foundation for Credit Counseling, the Association of Independent Consumer Credit Counseling Agencies and the American Association of Debt Management Organizations to see if the company you're considering is accredited.
If they're not accredited by any well-known organization, you should probably stay clear of them.
Also research the company on the Better Business Bureau's website. If you can't find anything on their business, try giving the BBB a call.
Look on RipoffReport to see if anyone has filed a report on the company.
Finally, Google their name for terms like "Name + review" or "Name + scam" or "Name + results" to see what kind of feedback other people have.
==> Examining Their Fee and Program Structure
Examine what kind of fee structure they're asking for. Is there an upfront payment? Is there an additional monthly fee on top of the interest percentage?
Compare at least two to three companies to get a good sense for what kind of consolidation you can qualify for.
Remember to do your own math. If a company claims they're only charging 8%, but when you do the math it comes out to 13%, that's something you should know before you sign any paperwork. There are plenty of interest calculators online that can make the math very simple.
Picking a debt control company is not a simple or easy process. Your financial future, as well as your credit report, is on the line. Compare several companies, do careful research and at the end of the day you'll come out ahead.
Follow the following tips and you'll have a much better chance of finding a great debt control program to work with.
==> Work with a Non-Profit Debt Control Company
Non-profit debt control companies are much less likely to be just out to make a buck. In fact, many of them were founded because they wanted to create a more helpful system than the one that currently existed.
Keep in mind that just because the company is not for profit does not mean it's free. You still have to pay for their services. They still have to make enough money to pay for their staff, their facilities and other operational costs.
Make sure you either ask the company to see their 501(c)(3) certification or call the IRS directly to verify their 501(c)(3) status.
There are several debt consolidation companies that aren't non-profits who claim to be so. Don't take non-profit claims at face value without verifying it.
==> Research Complaints and Accreditations
Check the National Foundation for Credit Counseling, the Association of Independent Consumer Credit Counseling Agencies and the American Association of Debt Management Organizations to see if the company you're considering is accredited.
If they're not accredited by any well-known organization, you should probably stay clear of them.
Also research the company on the Better Business Bureau's website. If you can't find anything on their business, try giving the BBB a call.
Look on RipoffReport to see if anyone has filed a report on the company.
Finally, Google their name for terms like "Name + review" or "Name + scam" or "Name + results" to see what kind of feedback other people have.
==> Examining Their Fee and Program Structure
Examine what kind of fee structure they're asking for. Is there an upfront payment? Is there an additional monthly fee on top of the interest percentage?
Compare at least two to three companies to get a good sense for what kind of consolidation you can qualify for.
Remember to do your own math. If a company claims they're only charging 8%, but when you do the math it comes out to 13%, that's something you should know before you sign any paperwork. There are plenty of interest calculators online that can make the math very simple.
Picking a debt control company is not a simple or easy process. Your financial future, as well as your credit report, is on the line. Compare several companies, do careful research and at the end of the day you'll come out ahead.
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