Our Debt Free Family

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Should You Go Exclusive? The Buyer Agency Agreement

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Are you looking to buy a home in Ontario? Whether you’re looking to buy in Toronto, Hamilton or Kitchener, it’s a good idea to work with a real estate agent. By working with a local real estate agent who knows the real estate market well, you’re more likely to find your dream home sooner and pay a reasonable price for it.

When working with a real estate agent, you may be asked to sign a buyer agency agreement. The buyer agency agreement is a legal document that outlines the relationship with the brokerage. (In Ontario, it’s the BRA , for “buyer representation agreement,” which may be a funny acronym, but don’t let it fool you—it’s an important legal document.) It includes information such as your desired property type, location, commission and the amount of time of the agreement. It also places fiduciary duty on the brokerage to promote and protect your best interests.

Being an agent can be tough. When your agent helps you look for a home, they won’t get paid unless you buy a home with them. The BRA at least guarantees you won’t go behind your agent’s back and use another agent.

Should you sign a buyer agency agreement? In my experience, it’s usually the newer agents who ask you to sign one. When you do, you’re committed to working exclusively with the real estate brokerage for the length of the agreement. If your agent is a rock star, it shouldn’t be a problem. But what if they’re not a good fit? Unless they let you end the agreement early, you’re stuck working with the same brokerage until the agreement expires. If you buy a home with an agent at another brokerage, your first agent could sue both the second agent and you for breaching the agreement.

When you’re asked to sign a buyer agency agreement, think of yourself like the franchise player on an NBA team. Would Kyle Lowry or LeBron James sign the first contract offer put in front of them? I don’t think so. Take time to think it over. If you do decide to sign an agreement, give your agent a trial run. Start with 30 days and see how it goes (signing any longer than three months is nuts!). You can extend it once your agent proves they’re a rock star. Also, make sure the agreement is limited to a specific geographic area and property type (e.g., houses, townhouses, or condos).

Check with the regulator in the jurisdiction you’re buying in for the rules on buyer agency.

 

Brought to you by Sean Cooper

Financial Tips for Young Adults

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Chances are, you didn’t learn much in school about how to manage your money once you started working and living on your own. Now that you’ve got this responsibility on your plate, it’s probably time to educate yourself about living within your means and preparing for any financial difficulties that may come your way. A good place to start is with these 5 simple tips to help you manage your money as you step into adulthood. [Read more…]

Can You Talk to Your Spouse’s Collection Agency?

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Talk to your spouse's collection agency

As you know, I recently got married. My husband and I have had anything but “normal” for the first few months of marriage. We’ve moved, had a few job changes, moved again, and now we are finally ready to refocus on paying off our debt. Hubby doesn’t like to call and talk to anyone on the phone when it comes to finances, which got me wondering on how I can help. More importantly, I needed to find out if you can talk to your spouse’s collection agency.

Can You Talk to Your Spouse’s Collection Agency?

Many people would read that and say, “make him do it himself.” However, in our marriage, it is important we both support each other in the areas we aren’t super comfortable in. For me, he takes care of in-person meetings and anything we have to take care of face-to-face. I take care of bills, most of the finances, and anything we need to make calls about.

So, the answer is yes, you can talk to your spouse’s collection agency. As far as collections are concerned, a spouse is the same debtor. You may even receive calls about your husband or wife’s debt without being asked to.

No collection agency is allowed to disclose information to any other third party without consent. To get that, you will need to give verbal and/or written consent to the collection agency for the third party (friend, relative, etc.).

Some additional information may be needed to verify you have consent to talk to the collection agency as well. In some cases, they will ask you to set up a verbal password for the phone. Other times, they will ask you to verify the account holder’s Social Security number, phone number, account number, or other identifying information.

Managing Debts Together

Most of our debt is in joint accounts (except for my student loans). For the most part, I draw up the budget, and plans for paying off debt each month. My husband has a certain amount of “play” money that he uses for whatever he’d like, as do I.

When it comes to managing money together, that is what works best for us. I think it is different for every couple. Finding what works for you and your spouse is what is important.

How do you and your other half manage money together? 

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February 2023 Update: Improved Credit Scores and More Progress

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<p>One of the best things about the debt freedom journey is watching how paying off debt will help you improve other areas of your life too. Our credit scores have gone up, especially within the past two months. At the beginning of the year, both of us stood in the “poor” area of the credit gauge and we’ve now graduated to “fair.” There is still a lot of progress to be had, but overall, we are super proud of this progress. Not to mention, being able to improve our credit scores can help us land a consolidation loan (which is something we’ve been discussing, especially for my pesky IRS debt).</p>::Pexels

February was a great month for us. We are getting situated with my husband’s new job as well as focusing on improving our health – physically, mentally, and financially. We made progress in all of those areas last month, which feels SO great. Here’s our February recap…

Our Credit Scores Went Up!

One of the best things about the debt freedom journey is watching how paying off debt will help you improve other areas of your life too. Our credit scores have gone up, especially within the past two months. At the beginning of the year, both of us stood in the “poor” area of the credit gauge and we’ve now graduated to “fair.”

There is still a lot of progress to be had, but overall, we are super proud of this progress. Not to mention, being able to improve our credit scores can help us land a consolidation loan (which is something we’ve been discussing, especially for my pesky IRS debt).

February Debt Update

As always, at the end of the month, I liked to give you all an update on the numbers. In January, our debt counts looked something like this…

  • My Car Amount Owed: $20,217
  • Credit Card Total For Both: $487
  • Student Loans: $24,362
  • Matco/Snap-On: $6,673
  • Amount in Collections: $679

Overall, we put about $1,600 towards debt payments in February. At the end of the month, here are our updated numbers (with interest accounted for)…

  • My Car Amount Owed: $19,729 (Under $20K!!)
  • Credit Card Total For Both: $455
  • Student Loans: $24,352
  • Matco/Snap-On: $6,243
  • Amount in Collections: $679

Accounts Being Paid Off!

One of the biggest things we are looking forward to in March (outside of our first wedding anniversary) is paying off yet another account. This account, once it is paid, will free up an extra $106 per month. While that isn’t a ton of money, it will allow us to pay off our credit card fairly quickly. Having our line of credit open will help us further improve our credit scores as well.

Then we will switch our focus to what we have in collections and get that paid off. Because those items have the highest impact on our credit, we’d like to focus on those. In about two years, our goal is to be in a place financially where we may be able to start looking at homes to buy.

Once collections are paid off, we will refocus on paying his tools off, student loans, and then our car loan. By July, we hope to double our monthly payments towards debts ($3,200 per month). Doing that will help us pay it off even more quickly.

Readers, where are you in your debt journey? Let’s chat!

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The Things We Do For Family

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<p>In the last personal update on the blog I talked about taking breaks and how important that is. I took a weekend off back in July and it was great. Since then, life has been way more hectic and, guess what? I haven’t had a break since, mostly due to the things we do for family.</p>::Pexels

In the last personal update on the blog I talked about taking breaks and how important that is. I took a weekend off back in July and it was great. Since then, life has been way more hectic and, guess what? I haven’t had a break since, mostly due to the things we do for family.

What Are The Things We Do For Family?

For everyone, familial relationships can be different. The things we will do for family members and close friends vary widely. Some people are very close with their families and they are a priority in their lives. For others, family doesn’t play as important of a role. My family has always been extremely close and when someone needs something, one of us comes to the aid of others. In some cases, the whole family is needed to put their heads together to resolve a situation.

About a month ago, I traveled to my home state, North Carolina, to help out with my grandmother. My whole family has taken some kind of time off for this matter, even my husband. Now, this weekend, we traveled even more: seven states, 17 hours in the car, and two plane flights. Ah, the things we do for family…

How Far Would You Go?

Everyone has their limits though. Not every family is as close as ours. Not every family gets along like we do and some relationships are just toxic to continue nourishing. When we set out on our journey to come home and help my family this weekend, it was a lot to ask but my husband and I didn’t think twice. We are exhausted, but we helped and did what we could.

Setting limits is important though. In the past, I’ve stretched myself too thin helping family members, especially where money is concerned. There have been times we gave our last $20 to another family member (seriously). Right now, for us, our boundary when it comes to helping out is money. We don’t have it to give currently. However, we are able to give our time and lend a helping hand when we can. Knowing your limits to how much you’re able to assist is important.

Conclusion

When it comes down to it, figuring out how important different relationships are in your life and determine boundaries. You can stretch yourself too thin, but if you define where your lines are and how far you’re willing to go to help you will save yourself a lot of hurt and trouble.

We will be headed back home today after 5 days of running around to help family. We are exhausted and have a lot to do when we return, but it was worth it and it always will be. If we are able, we will always go the extra mile for those we care about.

Readers, what are your feelings when it comes to helping family? Where do you draw the line?

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How to Pay for a Funeral: Your Complete Guide

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End-of-life expenses are always a bit sad to think about and hardly ever a favorite conversation topic. However, have you ever asked yourself what would happen if a loved one passed on unexpectedly?

Funeral services, memorials, and cremations can quickly add up in cost and place additional stress on family members in an already tense situation. Of course, the best way to lower some of this stress is by proper planning–but you can’t always plan death.

We’re going to discuss how to pay for a funeral–whether the circumstances are completely unexpected or there is awareness of the imminent situation. Keep reading for more information!

Cremation vs. Burial

If your loved one did not have a preference on whether they are buried or cremated, choosing cremation is the less expensive route. This choice still allows for a memorial service, however, there is no need for a casket or burial plot–two major sources of expenses.

Be sure to consider all urn options, as these containers can vary greatly in cost. Green Meadow Memorials offers a large selection of cremation and keepsake urns at fair prices, allowing for your funds to go further.

Planning a memorial service on weekdays and in the early morning will also help reduce costs, or you can simply choose to have a celebration of life at your home.

Government & Insurance Benefits

Part of having a life insurance policy is that it pays out upon death. This payout can range greatly but is often intended to help cover any final expenses.

There is also a Social Security death benefit and VA (veterans’ affairs) assistance for former military members and their spouses. While the Social Security benefit won’t cover any large expenses, the VA can help with burial plots and grave markers.

If your loved one has any association with clubs or organizations, (Rotary, Lions, and other fraternal groups,) you may consider asking for final expense assistance.

Religious Organizations & Crowdfunding

Should you still find yourself struggling to pay for a funeral, approach religious organizations or faith-based groups. This is best done if you or your loved one are (or have been) associated with them.

Many of these establishments have funds in place to aid in the cost of funeral services, caskets, cremations, and burial plots.

Because not everyone is religious, it may also be helpful to set up a crowdfunding campaign. These sites allow you to set a financial goal, share it among friends and can help you obtain the money needed for these final expenses.

Be sure to research these sites thoroughly as crowdfunding site charge a percentage. This percentage can vary from site to site.

How to Pay for a Funeral: Plan Accordingly

Unfortunately, you can’t control whether your loved ones plan for their end of life expenses. This can leave your family in debt or struggling to make ends meet.

However, you can choose to invest in retirement plans or life insurance to help cover your own funeral costs. Choosing to plan for your end of life expenses can help ensure your children never scramble to pay for your funeral, casket, or other related expenses.

If you have any other tips on how to pay for a funeral, let us know by leaving a reply below!

Giving Can Be Toxic Too: How to Focus on Yourself

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<p>First of all, you need to realize that not every source of giving is beneficial. You can give too much of your time, mental resources, and money to people, things, etc. Listen to your body and take a look at your mental state. Be sure to assess the why behind you giving your time, money, or attention to something. If it is draining you emotionally, take a step back. Don’t ever feel bad for caring about your own mental health. Giving too much of yourself to anything (a cause, a person, a topic) will result in your having nothing left.</p>::Pexels

There is so much turmoil in the world right now and, as an empath, I feel it pretty heavily. I’ve spent a lot of time reflecting and, honestly, just crying recently. But, it is important to know when you have nothing left to give, and I’m emotionally spent. So, here are a few tips (from yours truly) on how to focus on yourself without feeling selfish.

Yes, Giving Can Be Toxic

First of all, you need to realize that not every source of giving is beneficial. You can give too much of your time, mental resources, and money to people, things, etc. Listen to your body and take a look at your mental state.

Be sure to assess the why behind you giving your time, money, or attention to something. If it is draining you emotionally, take a step back. Don’t ever feel bad for caring about your own mental health. Giving too much of yourself to anything (a cause, a person, a topic) will result in your having nothing left.

How to Focus on Yourself Without Being Selfish

You may be thinking, “how can I focus on myself with so much going on in the world?” I’m right there with you. But you can focus on yourself without being selfish. In fact, you can practice self-care while still giving back to the community. Here’s how…

  1. Make time for your loved ones. If you are really trying to figure out how to focus on yourself without feeling selfish, call your loved ones, talk to them, and just see how they are doing. You’ll be amazed by how good it will make you (and them) feel.
  2. 2. Continue practicing a healthy lifestyle. Between COVID-19 and the civil unrest in the country, it has been difficult to focus on healthy living. It is still important to get regular exercise even at home and take care of your body.
  3. Try new things. When everything has been topsy-turvy for a while, it is easy to feel stuck in a rut. Switch up your routine or try something new. Just having something different (or something to look forward to) can greatly improve your mental state.
  4. Practice self-love and nurture your self-esteem. Offer yourself positive affirmations and stay away from negative self-talk. These things can have a profound impact on your overall self-esteem and how you interact with others.
  5. Keep a journal. Journaling has personally helped me a lot through this time. Think about getting a notebook or starting a digital journal to just write things out. For me, I am able to write out my thoughts, positive affirmations, and record what I was able to accomplish throughout the day. No matter what you are jotting down, having a journal can be a spectacular release.

Be Patient With Yourself and Others

Finally, it is so important to be patient with yourself (and others) during these tough times. Everyone is living through some pretty major turning points in history. Cut yourself some slack if you are feeling a little less motivates and are preoccupied. Everyone is. Just strive to do the best you can each day.

Readers, how are you emotionally dealing with everything going on in the world right now? 

 

 

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5 Financial Hacks for Every Startup

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Every startup’s goal is to reach financial stability in order to generate real profit, establish a fierce base in the competitive business world, and upscale their corporation. Although these may seem hard to reach, many of these objectives can be attained through a few simple steps early on. A systematic approach to your business management will allow you to better your time, capital, and other efficient resources. In order to do so, every start-up entity must understand and realize the following financial hacks. [Read more…]

Learning to Live on One Salary

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live on one salary

In my last update, we celebrated having paid off $20,000 or so in debt within one year. However, there have been a lot of changes with our cashflow in the house that has hindered the speed of that continuing. Mostly, we are down to one (main) salary.

My husband is breaking off on his own a bit and has been considering starting his own business. Because of this, cash flow on his end hasn’t been consistent. We’ve lived on one salary multiple times in the past, but every time it is different. Here’s how we’ve learned to live on one salary (and benefits of doing so).

Learning to Live on One Salary

Living on one income isn’t as hard as it sounds. First, you have to come up with a budget that only requires a single budget. For us, it is my income because it is more stable. Your family may want to choose the larger (or smaller) income, depending on your financial goals.

If you are over budget when you tally up your expenses, see where you can cut costs. Do you really need Hulu, Amazon, and Netflix? Or, if you’re looking for a bigger decrease, consider downsizing to a smaller home to better fit your new one-income budget. Others may find it beneficial to move to a more pedestrian-friendly area to cut down to one (or no) car payment or walk more places. If you’re comfortable doing so, you may even consider taking in a roommate or renter.

Consider giving up your indulgent behaviors like going out to eat, junk food, and other items as well. You certainly don’t need to eat out every Friday and spend tons of money on junk foods. This will help cut down the cost of food in your budget as well.

Why You Should Live on One Income

You’re probably thinking, why would anyone willing to live on a single income? It can be difficult and, at times, hinders you from being able to do everything you want to. It can also help you achieve some of your financial goals and feel more secure with your finances as a result.

  1. It makes saving money easier. Simply save your spouse’s income instead of spending it. If you can live on one income, why not bank the rest? You can create a strong emergency fund.
  2. You can use the cash for debt repayment. If you want to focus more on your debt payoff plan, living on one salary can make that more doable as well. Learn to live on one spouse’s income, then use the second to pay off what you owe.
  3. Financial security increases when you have a surplus of cash flow. You have more money than you need, why wouldn’t you feel more secure? You have the ability to invest in your future, pay off debt, and increase savings. It can truly pave the way for financial freedom.

Not to mention, if you live on one salary, you will always be ready if something happens to one of your jobs. You’ll have some savings, and you will be able to continue your current lifestyle until your spouse finds a new job (or starts earning more).

Our Debt Freedom Progress

live on one salary

So, while we are adjusting to living on a single income again, our debt freedom progress has been slow. However, today we paid the final $175 payment to completely pay off a credit card. That will free up an additional $175 for us each month to redirect towards other debts and savings.

In the next few months, we will be paying off other accounts and see our debt freedom progress continue. I will be in a wedding in October, which will be a small cost (around $200 total). We have prepared for that cost though. Both of us are planning to spend the holidays at home as well, to cut down on travel costs.

Readers, have you lived on one income? Tell me about your experience in the comments!

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Does Afterpay Help Your Credit?

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<p>If you haven’t already encountered Afterpay at checkout, it is a payment option that allows you to pay for your online purchase in four equal installments. Payments come out every two weeks, which works well for many people on a bi-weekly pay schedule. All you have to do to use it is choose “Afterpay” at checkout. Link your Afterpay account to a U.S.-issued credit or debit card where they can process future payments. Then, you are ready to go! Afterpay does limit the amount you are able to finance at first, but they increase it over time after seeing your ability to pay it back. It is also important to note that not everyone will be approved for Afterpay or the full amount you may need. It all depends on your repayment history.</p>::Pexels

Over 220 million Americans shop online every year. Because of this, digital wallets and virtual ways to pay have increased in popularity. Programs like Afterpay even allow you to make payments on your online purchases. But does Afterpay help your credit?

What is Afterpay?

If you haven’t already encountered Afterpay at checkout, it is a payment option that allows you to pay for your online purchase in four equal installments. Payments come out every two weeks, which works well for many people on a bi-weekly pay schedule.

All you have to do to use it is choose “Afterpay” at checkout. Link your Afterpay account to a U.S.-issued credit or debit card where they can process future payments. Then, you are ready to go!

Afterpay does limit the amount you are able to finance at first, but they increase it over time after seeing your ability to pay it back. It is also important to note that not everyone will be approved for Afterpay or the full amount you may need. It all depends on your repayment history.

Where Can You Use Afterpay?

Afterpay can be used at more than 25,000 online retailers. Anywhere you spend $35 or more and see the Afterpay option at checkout, you can use it. Some of the bigger names offering Afterpay include Jeffree Star Cosmetics, Shein, Armani, Ray-Ban, Carhartt, Bare Minerals, and more.

You can visit the Afterpay website to see a full list of retailers they work with.

Does Afterpay Help Your Credit?

Unfortunately, making on-time payments with Afterpay does not help your credit. The company doesn’t pull your credit to approve you for payments either. When you successfully pay off an Afterpay loan you get a kind of “in-house credit” and Afterpay will agree to lend you more in the future.

Customers who are unable to pay their bill on time are hit with an $8 fee the day after the bill’s due date. Then you accrue an $8 fee for every seven days the bill goes unpaid. Although Afterpay doesn’t technically charge interest, these late fees can stack up quickly.

Thoughts About Programs Like Afterpay

If you are making all the payments on time, Afterpay can be a good interest-free alternative to a credit card. However, it is important to remember that your debt freedom journey has a lot to do with reforming your behavior. Continuing to buy things with payment installments may put you back into a debt mindset (and you definitely don’t want that).

Anyone choosing to use Afterpay should be sure they can pay all four payments. Otherwise, it will be in your best interest to just save the money for the purchase instead.

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