Archive for debt

Overcoming The Rising Cost Of Healthcare, Childcare And Tuition

The rising cost of healthcare, childcare, and college tuition are among the biggest concerns for young people entering the workforce. Rising cost of basic needs have caused many to look outside themselves, searching for a solution.

Some expenses have to be paid before we even get to work for the day.  The baby has to be cared for, health care plan has to be funded, and we still have that debt from school hanging over your head.  The burden of these basic expenses can be a distraction from making progress toward your goals.The burden of basic expenses can be a distraction from moving forward Click To Tweet

Life Comes at Us Hard

As soon as we enter the workforce, we start to realize the amount of work it takes to earn money. There are expenses to commute to work. There are expenses for baby care. There are school loans to be paid. There are insurances and health care to pay for. All kinds of expenses that we pay for and we haven’t even made it to work! These are only a few of the seemingly endless expenses we encounter that try to separate us from the money.

Dreams fade fast in the light of reality. The dreams we had during adolescence seemed so real and achievable. There were no limits then. But when you realize how hard it is to earn and accumulate money, you forget all about those things you were going to achieve when you were younger. Read More →

Launching A Practical Get Out Of Debt Plan

The quote from Suze Orman that “Debt is bondage” is so true.  Debt not only holds you in bondage, it steals from you in the form of finance charges.

Do you find yourself avoiding answering the phone because you are tired of the bill collectors calling? I can remember being so broke that I had to spend extra money overnighting my house payment to the mortgage company. That was before the days of online bill payments. You have got it so much easier than ever before.

I have discussed debt and relayed my story about how I got into and out of nearly $100,000 of debt in earlier post Who is Responsible to Provide Basic Needs of Americans?

In today’s post, I want to help you create a plan of action and milestones. A good plan will lead you directly from where you are today to the point of complete freedom from debt. I will give you practical and actionable steps that you can follow to do what I did that got me out of debt.

Philosophy – The How and Why

Vale le Pena! Translation – It’s Worth It! Financial freedom is worth the sacrifice that it takes to get there. There will be some discomfort between where you are and where you want to be, but by enduring it you will reap the reward.Financial freedom is worth the sacrifice that it takes to get there Click To Tweet

When you are financially free, more of what you earn is yours to keep. You can buy and actually own more if you are not sharing a portion of your income with your creditors.

In the future, when you need to borrow money for big purchases like home or car, less money will go to finance charges allowing you to have nicer things.

Maybe you are in a place now where you are forfeiting too much of your hard earned income to finance charges. Perhaps you are not able to get the financing for a new car you want. Is your FICO score where you want it to be?

Pitfalls to Avoid

Setting the target unrealistically high

When you take account of how much you owe and how long it will take to get out of debt, the timetable of the goal could cause you to quit before you succeed. Read More →

Breakthrough As A Student Loan Debt Free College Graduate

Student loan debt is a common cause of financial distress for many college graduates.  There are some ways to lessen the weight of student loans both before getting into debt and after.

College graduates walk away from college with a diploma and a weight around their neck called student loan debt.  Students that leave school before graduation, only walk away with the debt.  Popular wisdom is that it will take years and years, maybe decades to finally pay off student loans.

One of the worst things about student loan debt is that students who are accruing them rarely have prior experience in dealing with debt. Students are almost victims of the system in that they are sort of put on automatic to getting into the debt.  The FAFSA data gets forwarded to lenders and all the student has to do to accept the loan is to sign for it.  The government encourages and enables the process.  There is not a step in the process where students are ingrained with the values of limiting the amount of debt they take on or any sort of urgency to break free from the bonds of debt.  “Debt is bondage” – Suze Orman

Debt is bondage! -Suze Orman Click To Tweet

Student Loan Debt Seems to Linger for a Lifetime

How Long Will it Take to Pay Your Student Loan Debt

Student Loan Debt Seem to Linger Forever

College graduates take for granite and accept that debt will be a part of their life for the next decade or more after graduation.  This does not have to be the case.  Someone needs to stand in the gap for the student and help them understand the down side that having this debt will bring to their life.  So many students are looking to others to make the debt go away after they acquired it.  The natural process that drew them in does not provide a roadmap to get them out.  Unfortunately, only the student is liable to meet the obligation.

Whatever phase of the student debt experience you find yourself, whether that is prior to getting into student debt, in school and increasing debt each semester, or a graduate looking for a way to get free from the weight of debt, I want to give you some hope and direction.

Sooner is better

Hopefully you are reading this before finding the noose of debt around your neck.  If that is the case, take heed and let this be words to the wise.

It might not be possible to get through your college education without any debt, but at least make an effort to keep it to a manageable level.  Only take out what you need to get through.  It is not wise to live lavishly on borrowed money.  You and only you will be paying back that debt.  Well, I take that back.  Possibly you and your future spouse will be paying that back.  Oh and add your kids to that list of who will be affected by the debt you take on during school if you let it get out of hand.  So, maybe you aren’t concerned about how it will affect you, but at least pay attention out of love for your future family.

Phases

Pre-loan phase

If you are at this stage, it is the perfect time to gain an operational understanding of the principles of debt.  There are a number of financial pitfalls waiting for you at college.  Hopefully your parents can give you guidance, but increasingly across the country people of all ages are struggling with debt and finances in general.

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