How-To & Education
Living Debt Free
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Welcome to the Living Debt Free Lens!
Looking for the best way to get out of debt?
This is the place to be for tips on debt management, credit cards, credit scores, budgeting and more.
My name is Kristine McKinley. I am a CPA and Certified Financial Planner, and the founder of Beacon Financial Advisors, a fee-only financial planning firm in Missouri.
I offer financial and tax planning on an hourly, fee-only basis. This means that I can help people of all walks of life, regardless of how much (or little) money they have to invest.
Due to the growing credit card problem in the United States, this lens is dedicated to Living Debt Free. Enjoy!
What You'll Find at Living Debt Free
- You CAN Get Out of Debt On Your Own!
- Your Biggest Challenge
- New! Living Debt Free Ebook and Audio Program!
- The True Cost of Paying Just the Minimum
- How to Ask for a Lower Interest Rate
- Five Ways to Find Extra Money to Pay Off Debt
- Credit Resolutions for the New Year
- Pay It Down! From Debt To Wealth on $10 a Day
- Is Now a Good Time to Refinance?
- The Spirit of Giving Should Not Produce Bankruptcies!
- The Money Wise Coach Blog
- The Fastest Way to Pay Down Debt
- Building Good Credit With Secured Credit Cards
- What's in Your Credit Score
- Beware the High Cost of Payday Loans
- How to Get Your Free Annual Credit Report
- Create a Visual Debt Reminder
- Motivational Video - Debt Free at Last!
- Great Debt/Credit Resources
- Finding Money to Pay Off Debt
- Instead of Saying "I Can't Afford That"
You CAN Get Out of Debt On Your Own!
There are many resources out there for those who are deep in debt. There are credit counselors and debt consolidation companies. There are lawyers offering to have your debt reduced for a fee, and in extreme cases, there is bankruptcy. With all of these choices, one might think that a person can't get out of credit card debt on his own.The truth is that it IS possible to get out of debt on your own. Even those who think there is no room in their budget to pay down credit card debt are often surprised. It takes willpower and determination, but you CAN get out of debt on your own.
So... how do you get out of credit card debt on your own? Here are some tips:
1. Stop adding new debt. Put the credit cards away, and avoid taking out new loans or refinancing old ones to borrow more money.
Click here to continue reading...
Your Biggest Challenge
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New! Living Debt Free Ebook and Audio Program!
Are you swimming in debt, with no end in sight? Do you cringe every time the phone rings, fearing it's creditors calling for money? Do your debts keep you up at night, tossing and turning, wondering how you're going to dig your way out?If you're deep in debt, you're not alone! The average American family has over $8,000 in credit card debt at an average rate of 18%!
Announcing... Living Debt Free - Learn How to Get Out of Debt and on the Road to Financial Freedom!
This complete Living Debt Free program includes:
* A 35-page ebook with real advice and tools to help you finally get out of debt, once and for all!
* Worksheets to help you plan and track your debt reduction strategy
* Sample letters to help you negotiate with your creditors and to correct errors in your credit report
* A 45-minute audio recording of the ebook for those who prefer to listen while they work or play
* A 58-minute audio recording of the teleclass "Get Your Top 'How to Get Out of Debt' Questions Answered" held on January 17, 2008
* A bonus ebook, "Save Money on Groceries: A Simple Guide to Meal Planning, Coupons, and Sales Circulars" provided by Cara Mirabella of The Household Helper.
So... are you ready to sop struggling and to finally live debt free? Get your copy of Living Debt Free now and get started on the road to financial freedom today!
The True Cost of Paying Just the Minimum
Many people think that if they can afford to make the minimum payment on their credit card that they are doing okay.
That couldn't be further from the truth. If you're only making the minimum payment on your credit cards, thanks to the magic of compounding (which is your friend when you are investing, but your enemy when you are in debt), you'll be paying on your credit cards for a long, long time...
Bankrate.com has a new calculator that shows the true cost of paying the minimum payment on your credit cards.
Check it out here.
That couldn't be further from the truth. If you're only making the minimum payment on your credit cards, thanks to the magic of compounding (which is your friend when you are investing, but your enemy when you are in debt), you'll be paying on your credit cards for a long, long time...
Bankrate.com has a new calculator that shows the true cost of paying the minimum payment on your credit cards.
Check it out here.
How to Ask for a Lower Interest Rate
Below is a video of four people calling their credit card companies to ask for lower interest rates. Of the four, three were successful. So, it is possible to get your interest rates lowered, just by calling.
Is saving a few hundred dollars a year in interest charges worth a few minutes on the phone? Take a listen and decide for yourself...
Is saving a few hundred dollars a year in interest charges worth a few minutes on the phone? Take a listen and decide for yourself...
Want A Lower Rate? Just Ask
You've heard the old saying... it can't hurt to ask... And when it comes to your credit card interest rate, just asking the bank to lower your rate could save you hundreds, even thousands of dollars.
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Five Ways to Find Extra Money to Pay Off Debt
Do you need extra cash to pay off credit card debts? To go on vacation? Just to make ends meet?Here are five ways to find extra cash today:
1. Adjust your withholding. Do you typically get a large tax refund? Instead of giving Uncle Sam an interest free loan each year, why not reduce your withholding so that you get more back with each paycheck?
2. Refinance your mortgage and other loans. We are experiencing some of the lowest interest rates in our history. Now's a great time to refinance mortgages and car loans to lower interest rates. Lower interest rates mean lower payments and more cash in your pocket for other things.
Click here to continue reading...
Debt Free Forums
Getting out of debt is hard to do, so it really helps to have a support system in place. If you don't have family and friends that you can go to to talk about your debt, consider participating in debt forums.
Debt free forums are a great place to share your challenges and accomplishments with other people who are on the same debt free journey you are.
Here are some of my favorite debt free forums:
Saving Advice Personal Finance Forums
Debt Consolidation Care Forums
About.com Credit/Debt Management Forums
If you've got a favorite forum that you visit, please post a link to it in the guestbook area. Thanks!
Debt free forums are a great place to share your challenges and accomplishments with other people who are on the same debt free journey you are.
Here are some of my favorite debt free forums:
Saving Advice Personal Finance Forums
Debt Consolidation Care Forums
About.com Credit/Debt Management Forums
If you've got a favorite forum that you visit, please post a link to it in the guestbook area. Thanks!
Credit Resolutions for the New Year
One way to cut the sting of the post-holiday credit card bills is to set a new agenda when it comes to credit. So consider the following ideas when setting your credit resolutions for 2007:Set dates for getting your credit reports: Each year, you should check each of your credit reports from annualcreditreport.com directly. You should spread out your requests, making requests quarterly so you can catch errors that might come up at different parts of the year and spot identity theft.
Get your credit score once a year: A credit score is a three-digit number that reflects the credit history detailed by a person's credit report. Go to www.myfico.com to retrieve your credit score once a year from one or all of the three credit bureaus.
Lock up cards; don't cancel them: Do whatever it takes to limit the use of credit cards in your life, but don't cancel credit card accounts once they're paid off. Why? Because your credit score relies on the number of credit lines you have open and in good standing and the length of time they're open. Lenders want to see a long record of credit management, and longtime accounts that you haven't touched in years may actually help your score because it shows you have some restraint. Remember to use them once a year and pay the full amount off immediately, to keep credit cards active.
Pay on time: Nothing damages your credit standing faster than late payments, particularly on big loans like mortgages and car payments. Get current and then resolve to pay in advance of the due date. A suggestion: once you get a bill, immediately look for the due date. Then make a note to yourself on a calendar 5-7 days before the due date to put a check in the mail so you're on time. You can also secure electronic payment options so you can pay closer to the due date or automatically.
Click here to continue reading...
Pay It Down! From Debt To Wealth on $10 a Day
Pay It Down! : From Debt to Wealth on $10 a Day
Amazon Price: (as of 10/11/2008)
The number one enemy of the American family's finances is debt, says Chatzky-especially credit card debt. The average American family, she reports, has 16 credit cards carrying a debt load of more than $8,000.
In this terrific little book, the Today Show financial editor and author of You Don't Have to Be Rich and other titles offers a tough-minded but workable plan for getting rid of that burden.
Is Now a Good Time to Refinance?
The Fed reduced rates once again this week. This usually causes many people to wonder... should I refinance my mortgage?
Refinancing offers many benefits but if you're considering it, there are some things you need to know. Let's take a look at the benefits first, then answer a couple of questions you might have about the process.
Benefits of refinancing:
#1: Save money. If your mortgage is currently at a high interest rate, now might be a good time to refinance at a lower rate. Refinancing not only reduces your monthly payment, but could save you thousands in interest over the life of your loan.
#2: Improve your cash flow. If you're able to refinance at a lower rate, you will lower your monthly mortgage payments and have more cash at the end of the month to use towards other goals/bills.
#3: Consolidate your debt. If you have credit card debt, you may be able to consolidate your debts. Your refinanced interest rate is probably much less than your credit card or loan interest rates. You'll save money in the long run by not paying as much interest.
Click here to continue reading...
Refinancing offers many benefits but if you're considering it, there are some things you need to know. Let's take a look at the benefits first, then answer a couple of questions you might have about the process.
Benefits of refinancing:
#1: Save money. If your mortgage is currently at a high interest rate, now might be a good time to refinance at a lower rate. Refinancing not only reduces your monthly payment, but could save you thousands in interest over the life of your loan.
#2: Improve your cash flow. If you're able to refinance at a lower rate, you will lower your monthly mortgage payments and have more cash at the end of the month to use towards other goals/bills.
#3: Consolidate your debt. If you have credit card debt, you may be able to consolidate your debts. Your refinanced interest rate is probably much less than your credit card or loan interest rates. You'll save money in the long run by not paying as much interest.
Click here to continue reading...
The Spirit of Giving Should Not Produce Bankruptcies!
by Cara at Cara's Coffee Break
The holidays are the giving season, and all of us enjoy spreading holiday joy by supplying loved ones with gifts. However, it is important to approach your holiday shopping with a firm budget in mind-and to abide by it.
Overspending can lead to a great deal of holiday stress and concern-as well as even more stress down the line when the credit card bills come due. One of the most important things you can do to minimize the stress (and potential adverse financial impact) of the holidays is to develop a firm budget for gifts. Even Santa Claus is careful enough to check his list twice! You should do the same, making sure you have established a budget that fits your financial needs.
Don't let holiday spending ruin the Christmas experience. The holiday season should end with a rendition of Auld Lang Syne, not with a Chapter 7 bankruptcy petition! Reduce your holiday stress by budgeting.
If you enjoyed this article by Cara, please check out her free ebook "How To Save Money Holiday Shopping"? Click the link to download today!
The holidays are the giving season, and all of us enjoy spreading holiday joy by supplying loved ones with gifts. However, it is important to approach your holiday shopping with a firm budget in mind-and to abide by it.
Overspending can lead to a great deal of holiday stress and concern-as well as even more stress down the line when the credit card bills come due. One of the most important things you can do to minimize the stress (and potential adverse financial impact) of the holidays is to develop a firm budget for gifts. Even Santa Claus is careful enough to check his list twice! You should do the same, making sure you have established a budget that fits your financial needs.
Don't let holiday spending ruin the Christmas experience. The holiday season should end with a rendition of Auld Lang Syne, not with a Chapter 7 bankruptcy petition! Reduce your holiday stress by budgeting.
If you enjoyed this article by Cara, please check out her free ebook "How To Save Money Holiday Shopping"? Click the link to download today!
The Money Wise Coach Blog
Fetching RSS feed... please stand byThe Fastest Way to Pay Down Debt
There's some debate among financial planners as to the best way to pay down debt. Some say paying the highest interest rate debt first is the best way; others say paying the smallest balance first is the best way.
Both methods have advantages and disadvantages, so we'll take a look at both, and help you decide which method is best for you.
Method #1 - Highest Interest Rate
In this method, you focus on paying off your highest interest rate debts first. The basic steps in this method include:
1. List all debts in order from the highest interest rate to the lowest interest rate.
2. Commit to paying the minimum payment on every debt.
3. Determine how much extra can be applied to the highest interest rate debt.
4. Pay the minimum amount plus the extra amount towards the debt with the highest interest rate until it is paid off.
5. When that debt is paid off, apply the amount you were paying to the debt that is paid off to the next highest interest rate debt until paid off.
6. Repeat until all debts are paid in full.
This method is the best method mathematically, as you will pay less interest in the long run.
Click here to continue reading...
Both methods have advantages and disadvantages, so we'll take a look at both, and help you decide which method is best for you.
Method #1 - Highest Interest Rate
In this method, you focus on paying off your highest interest rate debts first. The basic steps in this method include:
1. List all debts in order from the highest interest rate to the lowest interest rate.
2. Commit to paying the minimum payment on every debt.
3. Determine how much extra can be applied to the highest interest rate debt.
4. Pay the minimum amount plus the extra amount towards the debt with the highest interest rate until it is paid off.
5. When that debt is paid off, apply the amount you were paying to the debt that is paid off to the next highest interest rate debt until paid off.
6. Repeat until all debts are paid in full.
This method is the best method mathematically, as you will pay less interest in the long run.
Click here to continue reading...
Recommended Reading...
Zero Debt: The Ultimate Guide to Financial Freedeom (Includes "How to Deal with Collection Agencies" Audio CD)
Amazon Price: $29.95 (as of 10/11/2008)
Building Good Credit With Secured Credit Cards
I've gotten several emails lately from people who need to build credit, either because they are young and don't have any credit history, or they have had a bankruptcy or bad credit in the past.One of the best ways to build or rebuild your credit is with secured credit cards.
What is a secured credit card?
A secured credit card is where you give a bank a security deposit - $500 for example - and receive a credit card with a $500 limit on it. You use the secured credit card the same way you would any other credit card and make regular monthly payments to pay off any money that you spend using the card.
Click here to continue reading...
What's in Your Credit Score
Ever wonder what makes up your credit score? Here are the five categories that determine what your credit score will be:Payment history - this makes up 35% of your credit score. That means that the best way to improve your credit score is to always pay on time.
Amount you owe - makes up 30% of your credit score. Specifically, the reporting agencies are looking for the amount of debt you have compared to the amount of debt that is available to you. So if you max out your credit cards, your credit score is likely to go down, even if you pay all your bills on time.
Click here to continue reading...
Recommended Reading...
How to Get Out of Debt, Stay Out of Debt and Live Prosperously*: *(Based on the Proven Principles and Techniques of Debtors Anonymous)
Amazon Price: $9.60 (as of 10/11/2008)
Beware the High Cost of Payday Loans
As a small business owner, I know how tight cash can be at times. Many small business owners turn to credit cards and other sources for short term loans when business is slow and cash is tight.I've noticed that payday loan stores have been popping up in my area lately, so I thought I'd do some research to find out how these places work. Here's what I found out...
First, if you're not familiar with payday loans, basically, they are short-term loans, usually in small amounts. Typically, you write a check for the amount of the loan plus fees, and the lender cashes the check on a specified date, usually one to four weeks later.
Click here to continue reading...
How to Get Your Free Annual Credit Report
Unfortunately the holiday season usually brings an increase in credit card fraud and identity theft, so right after the holidays is a great time to check your credit report. Following is why, when and how to check your credit report...
Why you should check your credit report
* to check for errors
* to check for fraud and identity theft
* to get the best interest rates
* more and more people are relying on credit scores - car insurance, employers, etc.
When to check your credit report:
* Once a year if you have good credit and don't anticipate any large purchases in the near future
* Before a major purchase, such as a new home, new car, etc. - should request your credit report 6 months ahead of a big purchase so you have time to correct any errors
* If you've been denied a credit card, loan or other product or service because of your credit (you are entitled to a free credit report if you have been denied credit based on information found in your report)
* If you suspect that your identity has been stolen
* If you are starting a plan to get out of debt or repair your credit.
How to check your credit:
There are three credit reporting agencies (Equifax, Experian and TransUnion), and they are required to provide you with one free credit report each year. The three agencies do not always share the same information, so it's important to check all three.
Click here to continue reading...
Why you should check your credit report
* to check for errors
* to check for fraud and identity theft
* to get the best interest rates
* more and more people are relying on credit scores - car insurance, employers, etc.
When to check your credit report:
* Once a year if you have good credit and don't anticipate any large purchases in the near future
* Before a major purchase, such as a new home, new car, etc. - should request your credit report 6 months ahead of a big purchase so you have time to correct any errors
* If you've been denied a credit card, loan or other product or service because of your credit (you are entitled to a free credit report if you have been denied credit based on information found in your report)
* If you suspect that your identity has been stolen
* If you are starting a plan to get out of debt or repair your credit.
How to check your credit:
There are three credit reporting agencies (Equifax, Experian and TransUnion), and they are required to provide you with one free credit report each year. The three agencies do not always share the same information, so it's important to check all three.
Click here to continue reading...
Recommended Reading...
The Total Money Makeover: A Proven Plan for Financial Fitness
Amazon Price: $16.49 (as of 10/11/2008)
Create a Visual Debt Reminder
Trent over at The Simple Dollar recently posted about how he uses a visual debt reminder to remind himself of his commitment to reduce his debt.
His visual debt reminder combines several elements including:
Inspiration - this could be your children, your spouse, or anything else that will inspire you to keep your commitment
Goal - this could be buying a new home, a new car, going on a fantasy vacation, etc.
Progress - to show how close you are to meeting your goal.
Trent combined these three elements into pictures which he then placed in strategic places (his truck, wallet, and other highly visible places) to remind him of his goals and priorities.
I thought this was a great way to keep your goals at the top of your mind and just had to share.
His visual debt reminder combines several elements including:
Inspiration - this could be your children, your spouse, or anything else that will inspire you to keep your commitment
Goal - this could be buying a new home, a new car, going on a fantasy vacation, etc.
Progress - to show how close you are to meeting your goal.
Trent combined these three elements into pictures which he then placed in strategic places (his truck, wallet, and other highly visible places) to remind him of his goals and priorities.
I thought this was a great way to keep your goals at the top of your mind and just had to share.
Recommended Reading...
The Everything Get Out of Debt Book: Evaluate Your Options, Determine Your Course of Action, and Make a Fresh Start (Everything Series)
Amazon Price: $11.66 (as of 10/11/2008)
News about debt/credit from Google
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- The next horror for beaten-down financial firms is the $950 billion worth of outstanding credit-card debt?much of it toxic. That's bad news for players like ...
- Grappling with high personal debt
- Once you complete the plan, your remaining credit card debt would be erased. Dear Liz: We have a mortgage and home equity line of credit with a bank that ...
- More and more running risk of credit trap
- He had built up a debt of nearly $20000 on his credit card. "You're really paying interest on interest and paying interest on a credit card that is near ...
Motivational Video - Debt Free at Last!
Getting out of debt can be very stressful. To help people stay motivated on their journey towards becoming debt free, I created a motivational video. Enjoy!
Great Debt/Credit Resources
- Living Debt Free
- Ebook shows you how to get out of debt and on the road to financial freedom.
- Boost Your Credit
- Free ecourse shows you how to boost your credit score in five easy steps.
Questions? Feedback? Please share!
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shanmw22
Great job on the lens! Thanks for the info. Posted September 17, 2008 |
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Crenshaw
Great Lens, you have some great information listed. Posted May 27, 2008 |
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jsellers
Great lens. When you get a chance check out mine at http://www.squidoo.com/fight_back Posted May 07, 2008 |
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DianaWalker
Great information, Kristine. Diana Posted October 03, 2007 |
Alyssa
Thanks for this great lens Kristine! Looking forward to having you on my new blog!
Posted August 19, 2007
Finding Money to Pay Off Debt
Finding Money to Pay Off Debt
Five tips to help you find money to pay off debt from www.TheMoneyWiseCoach.com.
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Recommended Reading...
The Finish Rich Workbook: Creating a Personalized Plan for a Richer Future (Get out of debt, Put your dreams in action and achieve Financial Freedom
Amazon Price: $10.17 (as of 10/11/2008)
Instead of Saying "I Can't Afford That"
why not ask "how can I afford that"?
While browsing the The Carnival of 20-Somethings Finance, I saw a post called Tori Spelling - Unsung Financial Hero? that caught my attention.
If you like reality shows (me, not so much, but I actually caught part of this episode on one of my 'unable to sleep' nights), you may be familiar with Tori and Dean - Home Sweet Hollywood. On a recent episode, Tori and Dean were looking at new houses to buy, and they were looking at one that was twice their budget.
While that in itself isn't very remarkable, what was remarkable was Tori's response to her husband's objections that they couldn't afford the house.
Instead of saying "we can't afford it", Tori's attitude was "how can we afford this house?". She was willing to start a business - or even two - to be able to afford this house, even while 9 months pregnant!
In my financial planning business I work with a lot of people who are in debt. I'd like to take Tori's "how can we afford this house?" attitude and challenge those of you who are in debt, to consider...
Instead of asking, "how can I get out of this debt hole I've dug for myself?", ask yourself, "how can I make more money?".
By focusing on how to make more money, you'll have a more positive attitude towards your money, and you'll probably pay your debts off much faster than if you took a negative approach and spent your time worrying all the time.
What do you think?
While browsing the The Carnival of 20-Somethings Finance, I saw a post called Tori Spelling - Unsung Financial Hero? that caught my attention.
If you like reality shows (me, not so much, but I actually caught part of this episode on one of my 'unable to sleep' nights), you may be familiar with Tori and Dean - Home Sweet Hollywood. On a recent episode, Tori and Dean were looking at new houses to buy, and they were looking at one that was twice their budget.
While that in itself isn't very remarkable, what was remarkable was Tori's response to her husband's objections that they couldn't afford the house.
Instead of saying "we can't afford it", Tori's attitude was "how can we afford this house?". She was willing to start a business - or even two - to be able to afford this house, even while 9 months pregnant!
In my financial planning business I work with a lot of people who are in debt. I'd like to take Tori's "how can we afford this house?" attitude and challenge those of you who are in debt, to consider...
Instead of asking, "how can I get out of this debt hole I've dug for myself?", ask yourself, "how can I make more money?".
By focusing on how to make more money, you'll have a more positive attitude towards your money, and you'll probably pay your debts off much faster than if you took a negative approach and spent your time worrying all the time.
What do you think?
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Jump-Start-Your-Finances
Learn how to Jump Start Your Finances! Visit The Money Wise Coach for tips on saving money, investing basics, minimizing your taxes, getting out of debt, and much m... more
What's here
- What You'll Find at Living Debt Free
- You CAN Get Out of Debt On Your Own!
- Your Biggest Challenge
- New! Living Debt Free Ebook and Audio Program!
- The True Cost of Paying Just the Minimum
- More...
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