How To Get Out Of Debt: Channel Your Impulse Buying

One of the most effective methods that we decided upon when figuring out how to get out of debt, was to channel our impulse spending. This has helped us to both get out of debt faster and to develop discipline with our finances. How to Get Out of Debt by Evaluating Expenses In talking with people about their finances, I've found that one of the problems that many people face when trying to … [Read more...]

How Good Debt Can Go Bad

Have you heard someone say, “debt is fine as long as it’s ‘good’ debt?”  The idea of good debt is defined as using debt to purchase something that will appreciate in value.  Some view it as a tool that helps you meet your goals faster and more easily.  Here are four common sources of ‘good’ debt and how these debts can actually turn bad. Home Mortgages Paying cash for a home is very difficult, … [Read more...]

The Tragedy of Debt

Over the last few weeks, I’ve been convinced that I need to take a stronger stance against debt and offer more resources for people who are in debt.  I feel like I need to point out both the seriousness and ludicrosity (yes, I made up that word) of debt. As I’ve been working on my call for simple living and generous giving (in the form of a book called Transforming Your Financial Diet: 7 Steps … [Read more...]

Cosigning a Loan | A Chronicle of the Many Dangers

If you are a mean, hard, and calloused individual, you need not read this post about cosigning a loan.  However, if you have a tendency toward niceness and kindness flows within you, then you need to read this post line by line. MSN Money says you should never cosign a loan.  I'm not sure if never is the right word, but it would need to be a really unique situation. The nicer you are, the … [Read more...]

Hyperbolic Discounting: Why Paying Your Credit Cards Off Is Like Going To The Gym

This guest post is by Tim Chen the founder and CEO of NerdWallet.com, a website that helps consumers to compare low apr credit card offers. Tim also educates consumers about credit cards and personal finance at the Christian Science Monitor, Forbes Moneybuilder Blog, and the Huffington Post.  If you would like to write you own guest post click here. Have you ever wondered why most of us have … [Read more...]

The Basics of a Credit Report

Understanding what's in your credit report can help you improve your credit rating, lower the costs of borrowing, and fix any mistakes on your report. This post will help you understand the very basics of credit reports: what's in your credit report, who can look at it, how often you should look at it, and how it's created. Once you know these basics, you'll be ready to start improving your … [Read more...]

Debt and the Opportunity Costs of Not Paying it Off

When you make a decision to get into debt, you're also making a decision not to do many other things. Here are the three biggest opportunity costs of not paying it off. Opportunity Cost #1 - Your Future Retirement This cost will affect the day-to-day existence of possibly a third of your whole life. Some people may think that since retirement is so far away, they don't have to be concerned about … [Read more...]

4 Debts You Should Try to Avoid

Excessive use of debt can be a major hindrance to your financial independence. Although sometimes unavoidable, here are four debts you should try to avoid as much as you can. Credit Card Debt Most of our debt problems come from the overuse or misuse of credit cards. Here are some interesting stats from the Federal Reserve's latest Survey of Consumer Finances for 2007. 46% of families have a … [Read more...]

4 Tips to Pay Off Your Debt ASAP

I don't think I know of anyone who likes being in debt. Do you? If you, or someone you know are trying to get out of debt, here are some ideas that will help. Prioritize The first thing you should do is figure out all the debts you have. Which debts have the highest interest rates? If it's from a credit card, call your creditors and work on getting the rate reduced. If they won't do it, tell … [Read more...]

Debt Snowball Explained | How To Pay Off Debt Using the Debt Snowball

I thought we’d better sneak this post in before it gets too warm – a snowball is always easier to visualize in the winter. Editor’s Note: What a great line, eh?  Unfortunately, I wrote this post months ago, but since it was such a good line, I decide to keep it in this post even though it is now the hottest time of the year. What is the Debt Snowball? The debt snowball is a common approach or … [Read more...]