What to Do When Debt Piles Up

The simple fact is that debt equals stress, especially when that debt keeps growing. Even when you feel that there is no possible solution to your current debt situation, don’t lose hope. Options are available to help you to keep the debt from growing and to get yourself in a better financial position. Here’s what you need to know:

Step #1- Stop Accumulating New Debt

Don’t give up! Surrendering is one of the worst steps that you can take. You may think that you might as well keep spending since you already have so much debt and there is no way you could possibly get out. This thought process could keep you in debt for years or even decades longer. Instead, keep one credit card on you for emergencies. Leave the other ones at home. Some people will even freeze their cards in a block of ice or cut up their credit cards, rendering them difficult or impossible to use.

Step #2- Follow the Snowball Method

Many experts suggest that you pay off the debt with the largest interest rate first  but with the snowball method, as developed by Dave Ramsey, you approach the problem a bit differently. This system provides you with a reasonable method for paying off your current debt. To get started with this method, you need to tally all of your debts. For all of them except one, you pay the minimum amount each month. For the smallest bill, put any extra money that you can toward it. Once you have finished paying off that bill, you should move on to the debt with the next smallest amount putting the amount from the first bill toward it in addition to the minimum that you have been paying plus any other money you can spare.

Dave Ramsey gives this example:

In this example you would work your hardest to eliminate the $500 medical bill because it is the smallest and thus it can be paid off the quickest. Once it is paid off you can take the $50 that used to go toward the medical bill and put it towards paying off the credit card debt. So now rather than paying $63/month you will be able to pay $63+$50 which will result in
[Continue reading]

Investments to Consider for Retirement

A myriad of retirement investment options are available, but the problem lies in finding the proper ones for you. No one formula can guarantee that you land profitable investments, but you can spread your retirement savings among different assets that align with your objectives. The two primary purposes of Retirement Investments are:

  1. Provide Enough Income to support an acceptable quality of life
  2. Outlast You

Thus the key is to find the proper mix of investments that will meet these two primary objectives. You to find investments that will both outperform inflation and grow your asset base because each year the life expectancy increases so you will probably live longer than you currently expect. Experts now predict that you may need to fund life for 20-30 years after retirement.

[Continue reading]

5 Ways to Finally Break Free of Student Loans

There’s no questioning the value of a college education. Studies suggest that having one can even make you live longer, besides the obvious career benefits. However, the student loans left over after earning the degree can amount to a lot of debt, … [Continue reading]

Better Way: Money-Wasting Mistakes To Avoid When Moving

When moving day comes you want to have a systematic process in place so that your belongings are loaded and later unloaded without any hitches. But you should also consider the costs involved with moving and the ways you can save money and time just … [Continue reading]

Homemade, Natural, Affordable Cleaning Solutions

Are you looking for effective cleaners for your kitchen that don't cost an arm and a leg? Making your own from a few common household ingredients is the answer you might be looking for. Add the power of a good scent and your cleaners will be better … [Continue reading]

How Much House Can You Afford?

Buying your first house can be an exciting time. It can also be a nightmare trying to get the right amount budgeted for it. Most people sidestep the question by simply going to a bank and asking how much they qualify to borrow.  Unfortunately this is … [Continue reading]

Don’t Panic! 3 Stressful Fiscal Issues That Shouldn’t Blow Your Budget

Divorce finances

While many major events can result in unexpected expenses and lost wages, these issues do not have to jeopardize your financial future.  Major life events can wreak havoc on your personal finances and that is why during ordinary times you should be … [Continue reading]

Unique Ways to Find Extra Cash

Scrapper Girl Recycles

Sometimes, your paycheck might not be enough. If you are looking for some easy ways to make some extra cash, however, you should know that you have options. These are just a few ideas that you can try out if you would like to bring in a little bit of … [Continue reading]