Debts
“There is no dignity so impressive and no independence quite so important, as living within your means” _Calvin Coolidge
"A bank is a place that will lend you money if you can prove that you don't need it." - Bob Hope
“Beware of little expenses. A small leak will sink a great ship.” Benjamin Franklin
“When you run in debt, you give to another power over your liberty.” Benjamin Franklin
When you actively reduce your debt, you save on interest. When you pay on time, you save on late fees and maintain your credit score – which will save money long term. Reducing debt should be acknowledged and celebrated as a form of saving and a component of your financial plan.
TIPS ON GETTING OUT OF DEBT:
Keep debt to a minimum
List all your debt from smallest to largest
Know how much you spend every month
How much money are you bringing home every month?
Use the debt snowball method by paying from the smallest balance to the biggest balance and the envelope system from Dave Ramsey. Dave Ramsey has taught people a step-by-step approach to slashing their debt called the 7 Baby Steps.
Make a separate payment every 14 days to the credit company to avoid paying late fees and to pay it faster.
Be frugal: go thru all your expenses and find savings opportunities like buying used at thrift stores
Start a side gig or part time job in order to bring extra income
Sell anything you don't want or need on Craig-list or Facebook Marketplace or Gazelle
Stop using your credit cards, stop borrowing money
Talk to your creditors, let them know your situation and ask for lower payments or lower interest rates
Transfer to a zero interest rate card using balance transfer
Establish a budget: a budget that tracks your income and your expenses
Throw any excess cash at your debt
Establish an emergency fund of at least $1,000: “Why is having an emergency fund important”
Make everything automatic (paying bills and saving)
Find lost funds
Transition from using credit cards to paying cash only
Hire a financial guru for free. My favorites: Dave Ramsey and Clark Howard (listen to their podcasts, get their newsletters, read their books.... sign for the Financial Peace University (Dave Ramsey)
Talk to a credit counseling agency
Use physical triggers to keep you on the path
Dealing with Debt Is Not Easy, But USAGov Can Help : Whether it’s credit card charges, loan payments, or medical bills, struggling with debt of any kind can be overwhelming. Take the time to learn about common tactics to manage your debt and get help:
✅Credit Counseling Services: These services provide resources to help solve your money problems. Counselors discuss your entire financial situation and help you develop a personalized plan.
✅Debt Consolidation: Consolidation involves rolling your various debts into one monthly payment. If you have multiple credit card accounts or loans, this method can help simplify or lower your payments.
✅Personal Bankruptcy: If you're unable to pay your creditors, filing for bankruptcy can help you get a fresh start. Bankruptcy involves liquidating, or selling off, your assets to pay your debts, or creating a payment plan.
Research these options and other solutions to see how to best manage your debt and financial life.
Explore your options to learn how to become debt free: Life can be challenging at times and you may accumulate debt. If you’re in a position where you need help, it’s available. Understand choices you have like: Credit counseling, Debt settlement, Debt consolidation loans, Bankruptcy and Credit repair
Learning about your rights can help to prevent problems and avoid scams during this stressful time. If you have outstanding debts, you can use the When debt collectors call tool from our Your Money, Your Goals financial empowerment toolkit to be prepared to respond to debt collectors. The tool will help you to:
Take action to verify whether the claim is valid
Know how to dispute the claim if you do not owe the debt
Know what to do next if you do owe the debt
This information can also help you be prepared to avoid scammers who may pose as debt collectors to get you to pay on debts that you don’t owe.
Simplifying The Meaning & Costs of Compound Interest and Debt: if you carry debt, this phenomenon of compound interest is working against you, instead of for you. Debt payments accumulate interest, and interest charged on interest creates a compounding effect based on the same principles seen in investments.
Every Penny Counts When Paying Off Debt
Should I Get a Personal Loan? Things To Consider
The Right and Wrong Way To Do Automatic Bill Pay According to Clark
I Have $20,000 in Savings and $15,000 on a Car Loan. Should I Pay Off the Loan?
How a Sinking Fund Can Help You Avoid Debt
Yes, a Debt Can Go To Collections Despite Monthly Payments
5 Ways To Save on Your Mortgage
13 Tricks That Can Help Control Discretionary Spending
Buy Now, Pay Later? Why Installment Payment Plans Are Hurting Your Wallet
If you are struggling with debt, we can help Ramsey Solutions
The 12 Lies That Keep People in Debt
Why You Should Think Twice Before Lending Money to Family and Friends
The 7 P's of Early Loan Repayment
Resources to tackle debt from Ramsey Solutions
Simple Tricks for Controlling Overspending
When You Just Can't Stop Spending: Helpful Tools and Tips
Every Penny Counts When Paying Off Debt (the power of compound interest)
Stop Harassing Collection Calls on a Paid Debt
Debt Consolidation: The Pros and Cons of 3 Options
3 Critical Tools for Paying Off Debt
The Truth About Debt Consolidation Loans
Consolidating Debt into a Mortgage Refinance: Will It Save You Money?
Expert Interview: How a 401k Loan Affects Future Wealth
Debt Warning Signs You Shouldn't Ignore
The Rule of 72 (or How To Easily Double Your Debt)
Is It Possible For a Lawyer To Get You Out of Debt?
The Safer Way To Use Your Debit Card
Keep Tabs on Your Financial Overhead To Avoid Money Problems
Listen to 637 - Which Debts Should You Prepay First? A 6-Step Plan from Money Girl's Quick and Dirty Tips for a Richer Life on Apple Podcasts. https://podcasts.apple.com/us/podcast/money-girls-quick-and-dirty-tips-for-a-richer-life/id209859739?i=1000474435032
When You Can't Repay a Loan to a Family Member (Tips & Advice)
Ranking Debt Types From Worst To Best
Debtors Anonymous - Meetings, Support, Groups and Programs
What Is Zombie Debt? - Ramsey - Ramsey Solutions
Pitfalls of medical credit cards and financial plans
Debt Collection FAQs | Consumer Advice
What’s the Fastest, Best Way To Get Out of Debt
Consumer’s story on successfully managing an incorrect debt collection effort.
Facts and key resources for dealing with debt collection
Getting Out from Under Payday Loans: 7 Options
13 Tricks That Can Help Control Discretionary Spending
Yes, a Debt Can Go To Collections Despite Monthly Payments
Build Emergency Fund or Repay Debt First?
How To Avoid Loan Payment Pain
6 Legit Ways To Pay Off Debt Quickly
6 Steps To Take If Your Debt Goes Into Collections
How To Get Out of Debt in 7 Steps
Can I Get Out from Under My Son's Co-Signed Auto Loan?
Want to buy now but pay later? Read this first
How To Dig a Financial Hole and Bury Yourself in Debt
Understand buy now pay later loans
Guidelines for Calculating and Budgeting Debt Repayment
Using a 401k Withdrawal or Loan To Pay Off Debts
9 Strategies to Stop the Paycheck-to-Paycheck Cycle
4 Ways to Make Sure You Don’t Go Back Into Debt
What Is Zombie Debt and How Do You Slay It?
5 Steps To Take If a Debt Collector Calls
3 Ways Cognitive Bias Causes You to Spend Money
Simple Tricks for Controlling Overspending
How the Snowball Method Can Wipe Out Your Debt
5 Must Haves If You're Going to Borrow From Your Parents
Tools to help when you can’t pay your bills
Tips for Staying Motivated to Dig Yourself Out of Debt
What To Say to Someone Who is Having Money Problems
The Pros and Cons of 8 Ways To Consolidate Debt
A Safer Way To Use Your Debit Card
Consolidating Debt into a Mortgage Refinance: Will It Save You Money?
7 Tips to Manage Household Expenses and Debts Together
The Rule of 72 or How to Easily Double Your Debt
What You Can Do About Medical Deb
I bought a burrito in four easy payments
How to Stop Throwing Your Money Away
A Great Way to Think About Paying Off Debt!
Debt Snowflake: How to Use Tiny Payments to Put a Big Dent in Your Debt
6 Legit Ways to Pay Off Debt Quickly
How to Just Say No to Binge Spending
Debt 101: The Ultimate Guide to Debt
When You Just Can't Stop Spending: Helpful Tools and Tips
The Benefits and Dangers of Paycheck Advance App
Here’s What Happens to Your Debt When You Die
4 Life Saving Strategies for Those Who Are Deep In Debt
How a Family With Children Is Getting Out of Debt
Tackling Debt When Bills Exceed Income
The High Cost of Phantom Bills
When is it okay to go into debt?
50 Things Anyone Dealing With a Debt Collector Should Know
Staying Motivated to Continue Digging Yourself Out of Debt
Simple Tricks for Controlling Overspending
Behind on Debts? Know Your Rights
Tips for managing family lending and borrowing
Pay Off Debt Faster - 9 Ways To Attack Debt
Getting Out from Under Payday Loans
Should I Pay Off Debt, Save Money or Invest?
6 Steps to Pay Off Debt With a Credit Card Balance Transfer
6 Legit Ways to Pay Off Debt Quickly
Avalanche vs. Snowball: Which Debt Payoff Method Is Best?
Smart Strategies to Tackle Your Debt
Reduce Your Debt with a Sinking Fund
Need relief from debt? Here's what to know about your options
10 Red Flags That May Signal You’re In Big Financial Trouble
The High Cost of Phantom Bills
Debt After Death: What You Should Know
The man who wants to help you out of debt – at any cost
What to Do When You’re Being Harassed About an Old "Zombie Debt"
How to Avoid Being Surprised by 7 Nasty Expenses
The Statutes of Limitations on Debt Collection by State
The Wrong Way to Think About Debt | White Coat Investor
8 Surefire Ways to Get Rid of Debt ASAP
Avalanche vs. Snowball: Which Debt Payoff Method Is Best?
The Rule of 72...or how to easily double your debt (or your savings).
Falling Behind on Bills? 8 Steps to Get Help From Creditors Fast
How To Pay Off $10,000 Of Debt In One Year [It's Possible!]
Protect Yourself from Abusive Debt Collectors
Paying the high cost of payday loans
How Charge Offs Affect Your Finances (Even If You Pay Your Bills On Time)
8 Surefire Ways to Get Rid of Debt ASAP
9 Times You Should Not Use a Debit Card
14 Tips to Stop Impulse Buying and Save Money
What is the 30 Day Rule? Take Control of Impulse Spending
How to Protect Yourself from Predatory Lenders and Debt Collectors
Debt Freedom Doesn’t Equal Wealth
Wipe Out Debt, One Step at a Time
The 10 Biggest Reasons Baby Boomers Are in Debt
What to do When You Miss a Bill Payment
8 Surefire Ways to Get Rid of Debt ASAP
Which Debts Should You Prepay First? A 6-Step Plan
The Absolute Best Tool For Getting Out of Debt
Overwhelmed With Massive Debt? Do These Three Things Right Now
Are You Stuck In Debt? Let's Ditch The Cycle Of Being Broke And In Debt
The 5 Best Debt Tracking Systems
8 Surefire Ways to Get Rid of Debt ASAP
Examples of physical triggers to keep you on the path
Eight Ways to Find Out If You Have Too Much Debt - The Dough Roller
Ultimate Guide to Creating Your Own DIY Debt Management Plan
How the Debt Snowball Method Works | DaveRamsey.com
What Does My Debt Cost Me? | The Dollar Stretcher
Exactly How Much You Have To Earn To Pay Off Your Debt
Ultimate Guide to Consolidating Your Debt | MMI
Automatic bill pay: How it works and how to do it safely - Clark Howard
Should I Use Automatic Bill Payments?
6 Steps to Take If Your Debt Goes Into Collections | The Dollar Stretcher
3 Critical Tools for Paying Off Debt | The Dollar Stretcher
How to Get Out of Debt in 7 Steps - Clark Howard
6 Types of People Who Have Trouble with Money | The Dollar Stretcher
The Rule of 72 (or How to Easily Double Your Debt) | The Dollar Stretcher
25 Simple Ways to Start Paying off Debt Now - Frugal Rules
Pay Off Debts or Save First? | The Dollar Stretcher
What Is a Personal Loan and Should I Get One? - Clark Howard
Is there such a thing as good debt? - Hope+Cents
Is Debt Consolidation a Good Idea?
Reduce Your Debt with a Sinking Fund
How to Catch Up on Bills When You Fall Behind
Pay Off Debt App: Create Your Own Debt Payoff Plan
Save for Retirement or Get Out Of Debt? 5 Steps to Help Prioritize
How to Prioritize Your Debts When Money is Tight
Paid Off Home - How We Did It in 2.5 Years
Hope for an Almost-Retired Spendaholic
The High Cost of Phantom Bills
3 Dangers of Completely Automating Your Finances
Snowball vs. Avalanche: Which Debt Payoff Strategy is Best?
25 Ways to Start Paying off Debt NOW
Savings Secrets from People Who Have Paid Off Debt
Best Free Personal Budget Templates For Every Type of Financial Goal
When Your Adult Kid Wants to Borrow Money
Becoming Debt Free with Zero Sacrifice
Tools to help when you can’t pay your bills
5 Simple Steps To Stop Overspending Today
11 Tips and Tricks That Will Keep You From Overspending
Why Spending Rates Matter More Than Savings Rates
5 Things That Happen When You Spend Only Cash : This is why we don't use debit cards we use mainly checks
Tools to help when you can’t pay your bills
Having a hard time paying off debt? Try a Money Board!!
Why It Pays to Sleep on It Prior to a Big Decision
TIPS ON SETTLING PAYING DEBT:
-If you offer to settle you must have it confirm in writing before they receive any money. Make sure the letter states "settlement in full". Call the creditors after figuring out how much you owe and how much you can afford to pay. Tell them how much is your total debt and how much you can afford to pay monthly and if they agree put the terms in writing.
-Choose to pay anybody you owe by money order. Never give them access to your checking account or pay them by check. The amount your creditor agrees to write off is taxable income by the IRS.
- Beware of no payment, no interest, no down payment deals. Once the loan becomes due if you cannot pay you may owe thousands in interest. Interest charged are extremely high (25%-30%). Interest is retroactive back to the 1st date of the loan. You will end up paying interest on interest and the pay due date given might be wrong so make sure you check on your own when the loan is due and pay it way before.
Understanding Write-Offs, Charge-Offs and Foreclosures
MissingMoney.com Free unclaimed property search for American states that are members of the National Association of Unclaimed Property Administrators.
National Association of Unclaimed Property Administrators Simply click on any state you have lived in and it will take you to the states' website where you can search for unclaimed money and unclaimed property for free.
Claim for Lost, Stolen, or Destroyed United States Savings Bonds
6 Legit Ways to Pay Off Debt Quickly
Know the 8 emotional spending triggers
Statute of limitations on debts by state
State-by-State List of Statute of Limitations on Debt
Get money smart. 25 tips to improve your financial well-being
How To Get Out of Debt So You Can Retire | Money Talks News
QUOTES:
Spending Plan Success: I've found the key to making a spending plan work. Have a "spending plan meeting" with yourself (and spouse if married) every week. I review my spending for the previous week and think about whether any of it was unnecessary or unwise. This simple review makes a big difference. Often, I'll talk myself out of spending money by remembering my meeting. Amber from Dollar Stretcher Tips
The Cost of Debt: Have you ever totaled up all the interest you pay on your debt each month? I was shocked! There were finance charges on my car loan, credit card, student loan. When I added them up I figured I was working about half a day a week just to pay interest! So I've decided to work hard to pay them down. Lindsay from Money Saving Tips by Dollar Stretcher
Try Out Those Payments Before You Buy: If you are looking to buy something like a car or anything else that is expensive, find out what your payments would be each month and save that amount for six months. This helps for two reasons:
1. It allows you to see if you can afford this comfortably.
2. It allows you to have six months' worth of payments planned in advance at all times.
RS from Dollar Stretcher Tips
DEBT COLLECTION:
How To Dispute an Error on Your Credit Report and Win: https://clark.com/credit/how-to-dispute-error-credit-report/
Know Your Rights in Debt Collection: https://www.kiplinger.com/personal-finance/credit-debt/debt/debt-management/603152/how-to-manage-debt-you-dont-owe
5 Steps To Take If a Debt Collector Calls: https://thedollarstretcher.com/money-problems/steps-to-take-if-a-debt-collector-calls/
Debt Collection FAQs: https://consumer.ftc.gov/articles/debt-collection-faqs
What Is Zombie Debt?
https://www.ramseysolutions.com/debt/phantom-debt
Major takeaways:
1) Looks like the statute of limitations if you live in Massachusetts is 6 years(always confirm with a consumer lawyer because there could be exceptions to this rule)
2) If you are being sued, always hire a consumer lawyer ... never ignore court notifications about debt. Always show up. If you fail to do so the collector will win by default.
3) Always ask for verification in writing that proves that you owe this debt. Many times the debt collector does not have actual proof.
4) Collectors are barred from trying to collect after the statute of limitations has expired on the debt.... to find out how long you have the debt ask the collection agent when was the last time you made payment. That does not prevent them from trying to collect. You can ask in writing that the collector stop contacting you about the debt. You still owe the debt, but they can’t keep calling you about it.
5) It is not true that the statute of limitations starts after the debt collection is taken over by another agency. That is a lie!
6) The only time debt collectors can trick you into starting over the statute of limitations is when you agree to make a partial payment. If you do that the debt is revive
7) If you decide to settle, negotiate on pennies on the dollar (less than 50%)
8) Never send them a check, a credit card or give them access to your bank account. They will charge you for the whole amount. Send them a money order by certified mail. Always get the agreement in writing before sending the money.
8) Any debt older than 7-10 years should be dropped from your credit report.
Regarding the article Top 10 Reasons People Overspend, an 11th reason is a lack of planning! If you only buy things the moment you need them, you are bound to pay too much for them.
Some examples of how to avoid this overpaying:
Pay attention to sales.
Think ahead about occasions for which you'll need to buy gifts.
Stock up on shelf-stable grocery items for the cheapest price when they go on sale.
Bring food with you to work, on road trips, going to the park, etc., so you won't get caught having to buy expensive restaurant food.
A little forethought helps your dollar go a long way!
Drea
One- or Two-Day-A-Week Spending: I know some people occasionally like to do a no-spend month, but we have found that no-spend days work best for us. If you're trying to get better control over all those little expenditures you make throughout the week, try limiting any spending to one or two days a week — every week. This habit has stopped us from random spending. On the days we can spend, we have a set limit that we allow ourselves on discretionary purchases. We also pay bills, grocery shop and gas up the cars on our spend days. It just makes it easier for us to stick to our no-spend days. Doing this has made us far more aware of our spending and we are finally staying on budget each month and putting money into savings.
Lilith
Advice and tips for getting the best bank services and loans by Consumer Reports
Lend money or borrow money use either Prosper | Borrower or The Leader in Peer to Peer Lending: Loans and Investing | Lending Club.
If using this as an investment never put $ you cannot afford to loose and spread it into many accounts to reduce the risk. If you are using this as a borrower, this will give you access to small personal loans up to $35,000 to be use for everything from paying for wedding, for business and credit card debt. Interest rate will vary depending on your credit worthiness.
How To Get Out Of Debt Even On A Low Income
MORE QUOTES about Quick Tips on Paying Off Debt
I leave all income from side hustles in my Paypal account until the end of the month when I use it solely for paying down my mortgage. - Aaron Crowe
For paying off our mortgage I obsessed ALL THE TIME using my Pay Off Debt app. So basically my "tricks" are automation + obsession. - TheDebtMyth.com (Editor's note: I followed up with Jackie to see why she used "obsessed" in the past tense, and it's because she's completely paid off her house :) Guess that app (linked above) works!)
Any money I receive outside my normal salary (all reimbursements, gifts, etc.) goes to debt. - Kacy Wickenhauser
I split my monthly payments over 4 weeks for student loan payments = less interest (as accrued daily) and smaller chunks of money going to payments (easier to budget around $147/week than $1,000 full hit) - SmartWomanBlog.com
I tricked myself into paying off our mortgage by refinancing from a 30-year to 15-year loan (and basically paying the same monthly payment). Since we had/have savings and investments, and interest rates were higher when we borrowed, this made sense for us (the home's been paid off for a few years now). - InvestingToThrive.com
Every month after our mortgage payment comes out, I see what its new balance is and pay down the odd numbers to make it a nice even number via online account transfer. This encourages me to pay it down faster so if I have extra cash at end of month I make what I owe a nice round number. - James G
If you have credit card debt that you're trying to pay down, pay something as soon as the bill arrives vs waiting until the due date. This simple trick will shave down the interest you pay and help you pay it off quicker. - BaldThoughts.com
I use all of my cashback bonuses to pay down the balance. With some of my cards, the rewards are available immediately, and you don't have to bank $25 or $50. I've been known to make a $50.90 payment on a card with $50 being my money and the $.90 being reward. It really does make a difference. - Linsey Knerl
For other debt awesomeness, check out this tracker Jon put together tracking all the (significant!) amounts of debt that bloggers have killed so far. Pretty motivating! --> Debt Payoff All Stars