Upon deciding to stay home to homeschool my children, my husband and I had to a LOT of soul searching. Without the income I had received in the past, we would definitely need to do without frivolous items... or stuff... which didn't really add value to our lives. By doing this, by creating REAL life experiences, instead of spending money on THINGS we did NOT need, we realized emotional, and spiritual fulfillment.
If I could tell YOU one thing... and PRAY for you to listen... (other than believe in God, family and all that... LOL!)... I would tell you to PLEASE live within your means, and CREATE REAL experiences with your significant other, and children... family.
Get OUT of Debt - a few tips
1. Plan a Budget; Monthly, Weekly, Daily AND STICK to it!
2. Left over monies after planning your budget should be divided in 1/2. Put the 1st half in an emergency fund and apply the 2nd half to credit card debt, signature loans or other small loans. START applying to the debt, loan, or credit card which has the highest MONTHLY interest rate. Pay that debt until the balance is ZERO. Once you've paid the first debt, systematically work your way through the rest of your credit cards or debt until you have paid it them ALL off.
3. Keeping a list of your debt, and checking it off or marking it out as you pay it off creates a sense of accomplishment, gratification and will MOTIVATE you. It will give you a feeling of moving in a positive direction, and provide HOPE for your future; HOPE that you will eventually be DEBT FREE. It's like being on a scale and seeing your weight go down... it motivates you to keep going. If you got on a scale and kept working towards a specific goal and the scales weren't moving... eventually you'd give up. This list acts as a reminder, to you, that you are moving in the RIGHT direction.
4. Apply any "found" money to credit card debt or signature loans.
5. NO MATTER WHAT - if you cannot afford it, DO NOT BUY IT. AND... under NO circumstances do you charge ANYTHING!!! *smile* Yes, I'm talking to YOU! The CYCLE must end!
6. I do not advise a home equity loan - but if you are in so deep you could lose everything, and interest rates are low, it might be a consideration. If you decide on a home equity loan - DO NOT let these extra monies make you feel RICHER than you really are. A home equity loan is a band aid, not a cure for your debt. The debt is still there, it's just consolidated. Don't start borrowing again, simply because you paid off your individual debt items, such as credit cards, small and signature loans.
7. If you have a debit card, you may not need a major credit card. If you have monies in the bank, you can almost always use your debit card for making reservations, and for paying items online. If you don't have money in the bank and are wanting to make vacation reservations on your credit card... I say; NOT SMART MONEY MANAGEMENT. Wait until you can pay cash for that vacation, look for special rates, and/or go at a more affordable time.
8. Once your credit card is paid in full - cut it up and immediately request from the bankcard company that they close your account. Also request that the bankcard company reports your closing the account to the credit bureau so it doesn't appear you have more credit than you actually do.
9. Consider using some - not all- of your savings to pay off credit cards that have low balances - but keep your EMERGENCY fund intact. Why do this? The logic in switching loyalties; you are earning only 3% in savings and eating up that interest by paying 18% on credit card debt.
10. Spending money you do not have leads to debt overload. Consider the economy before making big purchases, and the future of your employment. You could lose your job, or become injured in an accident. If you are living right at your means, or beyond your means... losing your job could set you up for losing everything else too. Do not get yourself so deep in debt that any sudden, even small change in income could push you over the financial 'cliff'.
11. If you're already so deep in debt, don't ignore your debtors. The problem isn't going to vanish over night. Just because they aren't calling you NOW... doesn't mean the unpaid bill won't resurface through a collection agency three years down the road. Contact your creditors; explain your financial problems and commit to a payment schedule YOU can live with. If you need help, inform your creditors. Let them help you, don't ignore it... again, the problems not going to just go away.
Finally... consider seeking a nonprofit counseling service or low-cost assistance planning service to get debt repaid. You can also contact The National Foundation for Consumer Credit or by calling 800-388-2227 .
Hopefully these tips will help get you on the right start to living debt free. ONE MAJOR thing to remember is to LIVE WITHIN YOUR MEANS. If you or your family don't need it ... I MEAN REALLY NEED IT TO SURVIVE... then DO NOT BUY IT!!! The cycle HAS to stop! Best wishes as always!
If I could tell YOU one thing... and PRAY for you to listen... (other than believe in God, family and all that... LOL!)... I would tell you to PLEASE live within your means, and CREATE REAL experiences with your significant other, and children... family.
Get OUT of Debt - a few tips
1. Plan a Budget; Monthly, Weekly, Daily AND STICK to it!
2. Left over monies after planning your budget should be divided in 1/2. Put the 1st half in an emergency fund and apply the 2nd half to credit card debt, signature loans or other small loans. START applying to the debt, loan, or credit card which has the highest MONTHLY interest rate. Pay that debt until the balance is ZERO. Once you've paid the first debt, systematically work your way through the rest of your credit cards or debt until you have paid it them ALL off.
3. Keeping a list of your debt, and checking it off or marking it out as you pay it off creates a sense of accomplishment, gratification and will MOTIVATE you. It will give you a feeling of moving in a positive direction, and provide HOPE for your future; HOPE that you will eventually be DEBT FREE. It's like being on a scale and seeing your weight go down... it motivates you to keep going. If you got on a scale and kept working towards a specific goal and the scales weren't moving... eventually you'd give up. This list acts as a reminder, to you, that you are moving in the RIGHT direction.
4. Apply any "found" money to credit card debt or signature loans.
5. NO MATTER WHAT - if you cannot afford it, DO NOT BUY IT. AND... under NO circumstances do you charge ANYTHING!!! *smile* Yes, I'm talking to YOU! The CYCLE must end!
6. I do not advise a home equity loan - but if you are in so deep you could lose everything, and interest rates are low, it might be a consideration. If you decide on a home equity loan - DO NOT let these extra monies make you feel RICHER than you really are. A home equity loan is a band aid, not a cure for your debt. The debt is still there, it's just consolidated. Don't start borrowing again, simply because you paid off your individual debt items, such as credit cards, small and signature loans.
7. If you have a debit card, you may not need a major credit card. If you have monies in the bank, you can almost always use your debit card for making reservations, and for paying items online. If you don't have money in the bank and are wanting to make vacation reservations on your credit card... I say; NOT SMART MONEY MANAGEMENT. Wait until you can pay cash for that vacation, look for special rates, and/or go at a more affordable time.
8. Once your credit card is paid in full - cut it up and immediately request from the bankcard company that they close your account. Also request that the bankcard company reports your closing the account to the credit bureau so it doesn't appear you have more credit than you actually do.
9. Consider using some - not all- of your savings to pay off credit cards that have low balances - but keep your EMERGENCY fund intact. Why do this? The logic in switching loyalties; you are earning only 3% in savings and eating up that interest by paying 18% on credit card debt.
10. Spending money you do not have leads to debt overload. Consider the economy before making big purchases, and the future of your employment. You could lose your job, or become injured in an accident. If you are living right at your means, or beyond your means... losing your job could set you up for losing everything else too. Do not get yourself so deep in debt that any sudden, even small change in income could push you over the financial 'cliff'.
11. If you're already so deep in debt, don't ignore your debtors. The problem isn't going to vanish over night. Just because they aren't calling you NOW... doesn't mean the unpaid bill won't resurface through a collection agency three years down the road. Contact your creditors; explain your financial problems and commit to a payment schedule YOU can live with. If you need help, inform your creditors. Let them help you, don't ignore it... again, the problems not going to just go away.
Finally... consider seeking a nonprofit counseling service or low-cost assistance planning service to get debt repaid. You can also contact The National Foundation for Consumer Credit or by calling 800-388-2227 .
Hopefully these tips will help get you on the right start to living debt free. ONE MAJOR thing to remember is to LIVE WITHIN YOUR MEANS. If you or your family don't need it ... I MEAN REALLY NEED IT TO SURVIVE... then DO NOT BUY IT!!! The cycle HAS to stop! Best wishes as always!
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