Pay Off Debt or Invest

Pay Off Debt or Invest

Pay Off Debt or Invest – Which is Better?

Either one is an acceptable goal, but is one better than the other, or maybe you should do both? There are many opinions to the answer to this question, so let’s explore some of them. People who have created a budget and have extra cash, are sometimes faced with this dilemma.

So, should you pay off debt or invest that extra cash? A broad answer is there is no one size fits all situation. It all depends on a lot of factors surrounding your personal financial circumstances.

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10 Safe Tips to Get Out of Debt

10 Safe Tips to Get Out of Debt

10 Tips to Get Out of Debt and Keep You Out 

Whether you want to get out of debt or want to avoid it, what matters is you’re inspired to be better. But how do you start? Well, I’m here to help you with that! Today I bring you 10 tips that will help you get out of debt and keep it that way. If you make life habits out of these tips, you will never have to deal with the headache and stress of debt ever again.

  1. Check Your Statements Regularly

If you want to get out of debt, you need to start paying attention to detail. You won’t notice things such as a recurring fee on your credit card bill for that gym you don’t go to anymore if you don’t check your statement regularly. If you monitor your personal finances like a hawk, you won’t ignore View full post…

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How to Get Rid of Debt Now

How to Get Rid of Debt Now

Do You Know How to Get Rid of Debt? – 10 Helpful Tips

Do you know anyone who is living a debt free life? Do you want to live without the stress of meeting loan obligations every month? Read on and see how to get rid of debt once and for all.

Debt-free individuals usually share the following ten similar characteristics that enables them to live below their means. There’s nothing here that is so highly technical that prevents anyone else from copying.

  1. Start paying attention to details – As an example, if you don’t review your monthly credit card statement closely, there may be charges on there that shouldn’t be. Debt free individuals monitor their personal finances very carefully.

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5 Benefits of Debt Free Living

5 Benefits of Debt Free Living

Debt Free Living – 5  Benefits Await You

Are your debts causing stress and you want a normal life? Do you struggle every month just trying to make the minimum payments on your credit cards? Do you really want to achieve debt free living?

It’s so easy in today’s life style to get caught up in the “charge it” philosophy. You see your friends and acquaintances driving that new car or buying a very large house with new furniture. You think to yourself, if they can do it, so can I. What you don’t see is your friend’s , large mortgage, car loan, and several maxed out credit cards used to furnish that new house.

The average American is used to living with debt. Credit cards are used to buy things we don’t need, car loans for seven years because we like a luxury vehicle. Larger homes than we need are bought because we can get a mortgage for 30 years to lower the payment. We won’t get into the sensitive area of student loans in this article.

Debt free living is not just a simple choice. It’s a brand new life style that you decide to undertake, and it is by no means an easy route. Many try it and fail for a variety of reasons. Primarily, it is their lack of financial discipline.

If you’ve had enough stress and anxiety due to juggling payments on credit cards with balances that never reduce, maybe it’s time for a change.
Instead of the debt route, choose the debt free living road. There are many benefits that we can list for living debt free. For our purposes here, we’ll list the five major ones:

Stop paying interest and fees.
Current averages say that the rate of interest on a credit card is around 15% and the average balance carried is about $5,500.00. To make matters worse, credit card interest is not tax deductible. Keep in mind that those are only averages. Many that I have seen in my practice have credit card balances of $25,000.00 and higher. The decision to go with debt free living isn’t easy, but it can be done. I know it’s a difficult decision to make a life style change and I speak from personal experience.

My wife and I made that change many years ago, and by eliminating all debt, we’ve been debt free for over 20 years. We use one credit card for certain purchases to get points that can be used as cash. That card is paid in full every month. We’ve been able to pay cash for a new car (not a luxury vehicle), and we have no mortgage or a home equity line. Once you attain debt free living, all of that interest, including your mortgage payment, can go into savings which takes us to our second point.

Set up an emergency fund
Recent statistics issued by the Federal Reserve show that about 25% of American households don’t have any savings. In addition, the average amount in retirement funds is about $35,000.00. These figures are deplorable at best.Every household needs to have an emergency fund that should cover your total living expenses for at least 6 months. When you’re living paycheck to paycheck, and mired in debt, it’s next to impossible to spare any money for it. If there’s one thing for certain, an emergency will happen.

Establish a retirement fund
This is one area that everyone needs to start and the earlier the better. Even if you can only spare a few dollars each month, that will mount up over the years. If you’re debt free, you’ll be able to fund this account more and have a nice nest egg when you finally retire. As we mentioned earlier, it’s a difficult road, but with a good budget and controlled spending, it can be done.

You’ll have the freedom to make life style changes
Living with heavy debt and struggling to make the monthly payments limits you tremendously. However, If you’re already on the road to debt free living, you aren’t bound with those chains. Perhaps you’re in a job that you no longer like, you now have the freedom to make a change. Or you may want to move to a different area of the country. This leads to our fifth point.

You can live with less stress and worry
I can tell you for sure, debt free living most certainly reduces and/or eliminates a lot of stress, both financially and personally. The peace of mind of not having to decide who and how much to pay each month is a stress reliever.

We realize that with the previous recession and current economy, many are in debt. Some have lost their job and some are trapped in jobs with stagnant wages. Even worse, many have upside-down mortgages with little chance of recovery.

There are so many others though that can make the decision to take the road to debt free living. The sooner they do, the sooner they can enjoy the five benefits above. Give it a try!

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Alarming Student Loan Crisis

The Student Loan Crisis is Worse than We Realize

Student loan crisisRecent publicity comparing the increase in student loan debt to credit card and auto loan debt indicates how serious the problem really is. In 2017, outstanding student loan debt passed the $1.31 trillion dollar figure. That and the following facts and statistics will tell anyone that we have a student loan crisis.

The figures are bad enough, but how does all of that debt affect the students who must borrow to get a college education?

Over the past twenty years, approximately fifty percent of students who graduated with a bachelor’s degree, saw a tremendous increase in student loans. As an example, in 1994 the average student loan debt was slightly more than $10,000.00.

In 2017, the average more than tripled to $37,172.00. Does the word View full post…

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How To Pay Off Debt Fast

How to Pay Off Debt Fast While Living on a Budget

Learn how to pay off debt fast

With student loans at an all-time high and record delinquencies, millennials want to know how to pay off debt fast. Increasing debt is becoming a major concern and more than half of a survey group said they felt overwhelmed because of high debt.

 The millennial group surveyed had twice as many complaining of high debt as the 49 to 59 age group and the obvious question is why? What do you think the reason is? Please share your comments below.

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Mortgage Debt & Silent Generation

Secrets of the Silent Generation on Mortgage Debt

Mortgage debt is climbingSince the last financial crisis, many lower income American citizens have seen their mortgage debt levels rising. This has hit those nearing or in retirement the hardest, and is one of the primary obstacles that would otherwise have provided adequate retirement funding. Actually, debt has increased substantially since the 1990’s for many individuals because wages have struggled to keep up.

As an example, in 2007, those lower income individuals carried mortgage debt for their households that was approximately twenty percent (20%) of their total income. Six years later, in 2013, that percentage had jumped to fifty percent (50%) of total income.

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Debt Management Tips

4 Debt Management TIPS for 30-Something Year Olds

4 debt management tipsHaving debt is never easy or fun.  In your 20’s, studies show this age group seem to be able to manage their debt without too much stress and struggle. This all seems to change once people hit their mid-30’s.

There is almost a tipping point that defines the future in the years between 35-44.  This age group appears to have the highest level of debt than any other age group according to the Census Bureau.   This age carries 25% more debt than the next highest debt age grouping.

Coming in at more than $100,000 in debt, it is easy to see why the 30 something year olds feel like they are at a tipping point.

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