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5 Things to Avoid to Live Debt-Free

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<p>Reaching financial freedom is far from easy. Only 29% of Americans consider themselves to be financially healthy. Once you obtain debt freedom, you want to be able to stay there. So, there are several things you’ll want to avoid to live debt-free.</p>::Pexels

Reaching financial freedom is far from easy. Only 29% of Americans consider themselves to be financially healthy. Once you obtain debt freedom, you want to be able to stay there. So, there are several things you’ll want to avoid to live debt-free.

1. Budgeting is Always Crucial to Your Financial Health

You had to budget to get out of debt. That doesn’t stop just because you no longer have creditors to pay off. In fact, budgeting is even more important once you’ve paid everything off. If you don’t set a budget you run the risk of racking up debt again if an emergency arises.

Remember that your budget needs to be 100% cash. Don’t consider your credit cards or any other form of money spendable.

2. Overspending is a No-No If You Want to Live Debt-Free

That directly ties into overspending. If you start considering the money available on credit lines to be spendable, it is more likely you’ll restart the cycle of debt in your life. You certainly don’t want that after all of your hard work to get where you are.

Instead, plan for bigger purchases and save up for what you want. You should also have a set budget for recurring expenses and other plans. Don’t deviate from that budget.

3. Don’t Stop Saving Your Money

Saving money isn’t just important during your debt freedom journey either. As mentioned in the point above, it is important to save money for large purchases and planned expenses. However, it is also always a good idea to keep money saved.

Having an emergency savings fund will keep you from tapping into credit lines if something comes up. Additionally, saving money can help you secure your financial future and ensure you’ll be able to retire someday.

4. Giving Up on Investing Isn’t an Option

When it comes to saving for retirement, you should also continue to invest while you live debt-free. Even though you may not have as much cash flow or you may be tempted to spend cash, it is a good idea to invest in a diversified portfolio.

Not only will this allow for you to have financial freedom throughout the rest of your life but it can help you expand your current finances. Avoid being afraid of the stock market once you’ve paid off your debts.

5. Neglecting Insurance Will Cost You

Renter’s insurance, homeowners insurance, car insurance, and health insurance. Purchasing coverage is important to protect your finances. In the event of an accident or emergency, these policies can help you avoid racking up debt.

Even though the monthly cost of insurance may seem like a pain, it can help you replace damaged items, restore your health, and protect your belongings. Without it, it is easy to swipe your credit card. Insurance is crucial if you want to live debt-free.

Readers, what else would you add to the list? How do you live debt-free?

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How You and Your Family Can Save Money Around the Home

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With the current state of the economy, it’s important for every family to do their best to save money around the home. This can help secure their financial future and make it possible for them to weather the years ahead, no matter how tough things get. Read on to see some of the methods that you and your family can use to save money around the home. These are going to prove to be some of the most valuable lessons that you learn about money.

Insulate Your Home Well

A home that’s properly insulated is going to be great for the environment as well as your energy bills. This is evidenced by the fact that a typical family spends roughly one-third of its yearly heating and cooling budget, about $350, on air leaking into or out of the house via gaps and cracks that shouldn’t be there. That said, perform an inspection of your entire home, especially around your doors and windows. If you find any cracks or gaps, either find a way to seal them yourself or talk to an expert to come and do it for you.

Maintain Your Home

While maintaining your home may feel like an expenditure that you can avoid, this is not the right move to make. That’s because when you ignore making fixes around the home that are necessary, you’re only postponing an issue that’s inevitable and giving it a chance to get a lot worse. Keep in mind that homeowners will, on average, spend between 1% and 4% of a home’s value each year on repairs and maintenance. These tend to increase as the house ages, with a home worth $200,000 costing at least $2,000 every single year. As such, you need to include home maintenance in your budget and you may end up making your maintenance expenditure regular and predictable.

Get the Right Window Treatments

Your windows can also play a considerable role as far as your energy bills go. With inefficient window glass accounting for 25% of the energy bill of a regular home, it’s clear that you can make savings by getting better window glass. Pair this with the right window treatments, such as shades and draperies, which will make a positive difference when used the right way. Closing them to prevent excessive sunlight from filtering into your home, for instance, will help you keep your home cooler. You’ll also keep your home’s interior looking good for a long time since UV can fade colors on upholstery and the natural finish of the wood. As such, you should spare some time to make sure that everyone in your family knows when to open and close drapes or shades if you install some.

Turn Off Unused Appliances and Lights

Finally, there’s no need to leave lights and electronics on if they’re not currently being used. This is because doing so means that they’re consuming energy while no one is actually using them. Your entire family can thus benefit from forming the habit of turning off any electronics that they’re done using. Take the savings a step further and buy power strips. These will make it easy for you to turn off all unused electronics easily and do away with the power-leeching that takes place when they remain on standby. You could also change your home’s bulbs to LED bulbs, which are going to be better as far as energy consumption goes.

With these tips, you and your family can make your home more energy-efficient. It’s worth forming these habits early on as your children will grow up knowing what they need to do to minimize energy use around their own homes.

Support Your Business and Your Family: How to Pay Yourself and Manage Cash Flow

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<p>Do you run a small business?Do you struggle with managing your company’s finances? Are you able to set aside for yourself and your family without disrupting the cash flow of your business? A recent survey revealed that about 41% of small business owners in the United States face cash flow struggles. These problems affect small business owners beyond the financial aspect. Around 56% said that the struggles had a consequential emotional impact. There is also the question of how should you pay yourself as the business owner. The answer can be very tricky. There are certain factors that you need to consider especially when you are the boss. If you want to know how to pay yourself as a small business owner correctly, continue reading below.</p>::Pexels

Falling money on a white background

Do you run a small business?

Do you struggle with managing your company’s finances? Are you able to set aside for yourself and your family without disrupting the cash flow of your business?

A recent survey revealed that about 41% of small business owners in the United States face cash flow struggles. These problems affect small business owners beyond the financial aspect. Around 56% said that the struggles had a consequential emotional impact.

There is also the question of how should you pay yourself as the business owner.

The answer can be very tricky. There are certain factors that you need to consider especially when you are the boss.

If you want to know how to pay yourself as a small business owner correctly, continue reading below.

How to Pay Yourself the Right Way

Regardless if you are running a small business or a freelancer who works alone, you need to pay yourself. If you have people working under you, you need to set up a payroll system. If you are doing things by yourself, there is payroll for self-employed people.

1. The Structure of Your Business

First, you must consider the structure of your business.

The most common structures include sole proprietorship, partnership, limited liability company (LLC), corporation, and cooperative. The corporate structure has five types, namely, the C Corp, the S Corp, the B Corp, the close corporation, and the non-profit corporation.

If you’re starting small with a few trusted friends, an LLC might be the better option. It ensures everyone has a firm grasp on the company’s finances and ownership. This guarantees no one can out-profit the other, an issue that can happen in a traditional partnership.

We advise that you sit down with your trusted accountant regarding your payroll options in relation to your business’ structure.

2. Identify the Appropriate Payment Method

There are two common types of payment methods that small business owners tend to use: the owner’s draw and the salary.

If the structure of your company falls under a sole proprietorship, LLC, or partnerships, the IRS considers you as self-employed. Hence, the owner’s draw is the one for you. This is because you are not paid through traditional wages.

Keep in mind, however, that you still need to pay your individual taxes even if the owner’s draw is not taxable upon withdrawal.

Traditional salaries, on the other hand, work for C Corps and S Corps. Salaries are recurring payments. Unlike the owner’s draw, the IRS imposes taxes on salaries.

3. Compute an Amount

Now that you have determined that suitable payment method, you can move on to the amount of pay you should receive.

To avoid overpaying or underpaying yourself, you need to look closely into your daily duties. Determine an amount that equates to your daily business tasks. You should also consider how the amount impacts your business’ long-term growth.

Review your profit and loss statements and zoom into your monthly net profit. Take out your desired pay from the net profit. Do you find the pay fair and justifiable?

Identify the major duties you have in relation to your business operations. Find out how much you would pay if you hire someone else to do those things. The amount can serve as a guide to how much pay you can take from the profit.

There are online resources you can use for your computations. You may also consider services that help manage business cash flow.

You should also consider looking at the standards set by the industry.

How much do your competitors pay for services? How much do they pay their employees? How do they break down salaries and how do factors like hours worked, experience, and seniority in the company come into play?

4. Schedule Your Payroll

You need to follow a payroll schedule even if you only have one or two employees working for you. The usual pay schedules among companies in the United States are twice a month, bi-weekly, or weekly.

Majority of the states follow a basic payroll calendar. If your state enforces one, then you should abide by all means.

Not many companies consider one important factor: collaborating your schedule with local, regional banks. Some banks are strict in releasing credit cards or loans to employees and require a weekly or bi-weekly direct deposit account. You can support your business and manage cash flow by sticking to the schedule your local banks abide by.

5. The Mode of Payment

Lastly, you need to determine how you are going to get your paycheck. You can deposit your salary directly into your bank account. You can also write a check if you wish to.

Which modes of payment should you prioritize?

Direct bank deposits should be the primary method available. You should also consider methods such as PayPal. PayPal is great for people hoping to save money since it’s always online and you can’t simply withdraw the cash from an ATM.

As mentioned, checks should be an option for those who prefer a more traditional method.

Bonus Tip: Fragment Your Pay

One extra tip is to fragment your own pay. It’s likely you already have a spreadsheet of different bills to pay, employees to pay, and personal desires to purchase. You should set your account to automatically pay these things out upon receiving your own pay.

This guarantees you won’t forget to pay out anything. The money left in the account is purely a surplus you can spend on business expansion and personal wants.

Grow Your Business and Eliminate Debt, Today!

Taking your small business to the next level requires patience and the thirst for learning. The same thing goes for eliminating your family’s debt. Following these tips should help you pay yourself, keep your business afloat while also guaranteeing steady growth and expansion.

If you are struggling in both areas, we encourage you to get in touch with us. Simply fill out our contact form and take the first step toward becoming debt-free. Don’t hesitate to speak with the professionals to get back on solid ground!

A Few Things to Know About Loans

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<p>The current life standards have forced many people to think about the option of getting a loan whenever they want to buy something or enjoy a good holiday abroad. Even though people are paid much better than 20 or 30 years ago, the standards have risen to a point where you need to apply for loans several times throughout your life. This is not something that we should be ashamed of. After all, those are things that we have to get used to. Some research has shown that more than 60% of the people in the world are living in some kind of debt. There are many things to know about loans and paying them off, but we wanted to share a few interesting facts about them which are highly informative.</p>::Pexels

The current life standards have forced many people to think about the option of getting a loan whenever they want to buy something or enjoy a good holiday abroad. Even though people are paid much better than 20 or 30 years ago, the standards have risen to a point where you need to apply for loans several times throughout your life.

This is not something that we should be ashamed of. After all, those are things that we have to get used to. Some research has shown that more than 60% of the people in the world are living in some kind of debt. There are many things to know about loans and paying them off, but we wanted to share a few interesting facts about them which are highly informative.

Debt Consolidation

When you get a loan, it’s important to have a plan on how to pay it off. If you don’t have a plan, you might end up not being able to keep up with the monthly payments which can lead to a lot of trouble. One way to manage to overcome a problem like this is debt consolidation.

Debt consolidation is a form of refinancing in which you take a loan which will pay off all other loans. There are many advantages to it, like lower interest rates, fresh start on monthly payments, etc. But, these advantages come only if you get this type of loan form a good and credible company. So, it’s extremely important to choose a good company which will help you deal with your financial difficulties.

The overall lower interest rate is what makes debt consolidation loans so popular and handy for anyone who is having trouble paying off their debts. With this type of loan, the repayments can spread over to a larger period.

They Are Available Online

As we all know, there are plenty of advantages that came with the rise of the Internet. Many services have been made available online. Such is the case with online loans. Many online lenders hand out loans to people all around the world and they became extremely popular lately. The reason for that is that they are very easy to deal with.

Online lenders are flexible with their clients. To make things even better, their approval rates are much higher than the ones of the banks. Online lenders have a 70-75% approval rate, whereas the banks have around 55-60%. The applying process is also much faster – all you need to do is fill out an application and wait a few days for feedback.

Countries With Low Interest Rates

The top 3 countries with the lowest interest rates in the world are Switzerland, Denmark, and Japan. The good economic state, as well as the politics of the countries, have been huge contributors in making them stable and ‘affordable’ to the people. Feel free to check out the top 5 list here.

Side Jobs Can Help You Pay Loans

This may sound a bit funny, but many people around the world take up some side jobs as a way to help them pay off their debts. And they can extremely helpful, a lot more than you would think. There are plenty of easy profit-making side jobs that can better your financial status and ease your worries when thinking if you are able to pay off your debt. Going online to make money is also a good idea.

7 Financial Superstitions Many People Believe

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<p>It’s Friday the 13th, which many people consider bad luck. There is a bit of history behind the number 13 and Friday the 13th. However, it got me thinking about financial superstitions that many people still believe to this day. Here are a few you may or may not know.</p>::Pexels

It’s Friday the 13th, which many people consider bad luck. There is a bit of history behind the number 13 and Friday the 13th. However, it got me thinking about financial superstitions that many people still believe to this day. Here are a few you may or may not know.

Why is Friday the 13th Unlucky?

If you do some digging into the history of Friday the 13th, there are a number of theories as to why people consider the day to be unlucky. From The Scotsman:

The Christian belief that Jesus was killed on Good Friday appears to be the reason Friday is seen as unlucky.

There are also biblical references that are linked to fear, doom, and tragedy. In the Bible, it states Eve handed Adam the poisoned apple on a Friday, while it was a Friday on which Cain murdered his brother, Abel.

On top of that, the phrase “Hangman’s Day” from the United Kingdom is also associated with Friday. It was the day in which people who were sentenced to death would be hanged.

Additionally, famous rapper Tupac Shakur died on Friday the 13th. A number of flights have crashed on Friday the 13th over the years. Buckingham Palace was bombed during WWII on Friday the 13th and on the same day in 1940 a cyclone killed more than 300,000 people in Bangladesh. ISIS launched attacks in Paris on Friday the 13th. The list can go on and on.

Financial Superstitions

Because of that, there are a number of superstitions attached to the number 13 and Friday the 13th. Many people try to avoid doing anything considered to be unlucky on that day. There are a number of financial superstitions from all around the world. Below are seven that I’ve heard over the years.

#1 Itching Hands

Itching hands is one of the most well-known financial superstitions. If your left hand is itching, it means you’ll come into some money soon. At the same time, if you find your right-hand itching, it means you’ll probably come into money troubles soon.

#2 Tossing Money Into a Fountain

We’ve all tossed a quarter into a fountain and made a wish. Did it come true? Perhaps. This is another superstition that dates back hundreds of years to Europe. It was thought that clean water was a gift from the Gods. So, people left many people left money near the fountains to thank them.

#3 Sixpence in the Bride’s Shoe

Many people are aware of the superstition surrounding weddings – something borrowed, something blue, something old and something new. That last bit of that line has gotten cut off in more recent years but for a long time it was considered good luck to have a sixpence in the bride’s shoe. This was believed to help her have a prosperous marriage.

#4 Purse or Wallet on the Floor

In some countries, it is considered bad luck if you let your purse or wallet hit the floor. It is bad luck for your business and your finances altogether.

#5 Find a Penny, Pick It Up!

Another one of the better known financial superstitions pertains to when you find a penny on the ground. You are supposed to pick it up because it’s good luck. However, that is only if it’s heads up. Tails-side up and you should leave it be – it could bring bad luck.

#6 Spider in Your Pocket

I’d scream if there was a spider in my pocket, but this is another one of those pesky financial superstitions. Evidently, if you find a spider in your pocket, it means that you’ll be rich. So, maybe a happy scream would be in order.

#7 Don’t Gift Empty Piggy Banks

Last but not least, another financial superstition I’ve come across throughout my life is that it is bad luck to gift someone a piggy bank without putting money in it. When you gift someone a piggy bank, you’re supposed to put some change in there or a few dollar bills to wish them good luck with their finances.

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What Hurts Your Credit Score? 6 Things That Can Cause It Serious Damage

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<p>The average American credit score has risen steadily since the Great Recession. The national FICO score average is now 704. If you have good credit, your main concern should be avoiding mistakes that may lead to this score getting lowered.By finding out what hurts your credit score, you can use this information to keep your credit in good shape. Without good credit, you will find it hard to do things like getting approved for car or home loans. Not only will you need a good credit score to make these larger purchases, you will also need to save money. One of the biggest trends in the world of savings is the 12-week challenge. This challenge requires you to save between $100 and $150 a week for 12 weeks.</p>::Pexels

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The average American credit score has risen steadily since the Great Recession. The national FICO score average is now 704. If you have good credit, your main concern should be avoiding mistakes that may lead to this score getting lowered.

By finding out what hurts your credit score, you can use this information to keep your credit in good shape. Without good credit, you will find it hard to do things like getting approved for car or home loans.

Not only will you need a good credit score to make these larger purchases, you will also need to save money. One of the biggest trends in the world of savings is the 12-week challenge. This challenge requires you to save between $100 and $150 a week for 12 weeks.

The following are some of the things you need to avoid when trying to keep your credit score high.

1. Missing Payments is What Hurts Your Credit Score the Most

If you are like most consumers, you have a number of credit card minimums and loan payments to make each month. While keeping up with these payments may be difficult, you need to avoid missing one by mistake.

Not only will missing a credit card or loan payment lead to additional late charges, it can also hurt your credit score. A payment that is over a month late can lead to a credit score being reduced by nearly 90 points.

The last thing you want to do is significantly reduce your credit score due to a mistake. This is why you need to get organized when it comes to when payments are due.

2. Avoid Maxing Out Your Credit Cards

Did you realize credit card utilization accounts for nearly 30 percent of your credit score? This means that the lower your credit card balances are, the higher your score will inevitably become.

Practicing a bit of restraint when it comes to credit card spending is vital. Maxing out one or more credit cards is a horrible idea that could cost you dearly.

Higher credit card balances will lead to your monthly minimums increasing, while your credit score decreases. Maxing out your credit cards can reduce your credit score by up to 45 points.

3. Too Many Hard Inquiries Can Affect Your Credit Score

Every time you attempt to get a loan or a new credit card, a hard credit inquiry will usually be performed. Lenders need to pull your credit report to ensure you are a good candidate for a new loan or credit card.

Applying for a number of different loans or credit cards in a short time frame can lead to a number of hard credit inquiries being generated. Instead of hurting your credit score with the inquiries, you need to be selective about applying for new lines of credit.

Doing some research before applying with a particular company is a must. With this research, you can figure out which lender offers the best terms on the loan you need. Once you have this information, you can apply for one loan instead of a handful of them.

4. Steer Clear of Charge-Offs and Collections

Having unpaid debt can affect your credit score in a negative way. If you avoid making an attempt to pay a particular debt, the company that holds this debt may sell it to a third-party collection agency.

While this may not sound like a big deal, it can actually hurt your credit score. In some instances, a company will classify your debt as a charge-off. Basically this means that a company is removing the debt from their books due to it being unpaid for a long period of time.

Checking your credit report regularly can help you find issues with unpaid debt. Taking out a personal loan to pay off these debts is a good option. If you are looking for information about the best personal loans on the market, you can read more here.

5. The Damage Done by Bankruptcies and Foreclosures

Being unable to pay your debts will put you in a very compromising position. Often times, people who are unable to make these payments will have to file for bankruptcy.

If you are unable to pay your mortgage, the bank may decide to foreclose. A bankruptcy can lower your credit score significantly. The negative mark left by a bankruptcy can stay on your credit report for up to 10 years.

A bankruptcy or foreclosure can lower credit scores by up to 240 points. Contacting your creditors and letting them know about your financial hardship is a step in the right direction. Usually, lenders will offer a reduced payment plan designed to help you avoid foreclosures and bankruptcies.

6. Debt Consolidation Should Be Avoided

Some consumers think that consolidating their debt into one easy to make payment is a good idea. While a single monthly payment may be helpful for you, it can be damaging to your credit score.

Generally, companies that offer debt consolidation loans will have to pull your credit report. This means you will have a hard inquiry, which as previously mentioned can lower your credit score.

Paying off mounds of credit card debt can be a daunting task. By doing this on your own without the help of a consolidation loan, you can avoid affecting your credit in a negative way. Meeting with a financial advisor is a great way to get a plan of action when attempting to pay off debt.

Focus on Keeping Your Credit Score High

Getting low-interest rates on loans and increasing your buying power is easy with good credit. Now that you know what hurts your credit score, you can avoid making these mistakes. Keeping your credit card utilization low and your savings high can benefit you and your family.

Looking for more information on paying off your debt? Be sure to check out our article on how to create a debt avalanche.

4 Signs It Would Benefit Your Family If You Look for a New Job

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Looking for a new job may feel like a lot of work, given the process. This is on top of the fact that countless other people are also likely looking for a job at the same time. That said, it may be in the best interests of your family for you to look for another job. Read on to see four signs that should let you know that your family would benefit a lot if you got a new job.

1. You May Improve Your Financial Security

The first reason why you may want to get back on the market to hunt for a job is that doing so could improve your financial security. If you’re earning just enough to get by from your current job, you should think about looking for another job that pays better. When you do this, you may improve the financial security of your family and improve your future prospects. You may also lower the likelihood of having to file for bankruptcy when you get a better-paying job with good benefits. Note that a whopping 97% of bankruptcies are filed by individuals. This shows that you may end up having to file for bankruptcy yourself if you don’t take care. The best measure is to make sure that you’re comfortable with your expenses and cash flow isn’t an issue in your home.

2. You Could Improve Your Work-Life Balance

Your current job may be so demanding that you hardly have any time to spend with your family. In this case, it’s important to find a job that doesn’t leave you too tired and overwhelmed at the end of the day to take pleasure in your family’s company. Your family no doubt wants to spend time with you and build a strong bond, something that you’ll only be able to do if you can comfortably get some time off from work. To this end, your family could benefit immensely if you find a new job that allows you to spend more time with them, indulging in the simple pleasures of life.

3. Layoffs Are Imminent

If you feel that there are potential furloughs or layoffs on the horizon, you’re better off looking for another job. Doing this can help you to maintain your family’s financial security. To tell if there are layoffs that could affect you, you should keep an eye open for signs like noticing your coworkers being furloughed. Other signs are if you seem to have a lot less work to do than you did before and your job’s major clients are either leaving or struggling with making payments. These signs show that things are unstable and you may be better off looking for another position. Do this bearing in mind that over 73% of job seekers in the current market are looking for a job passively. This means that if you put in the hard work, you may have a chance of getting another job, even in an unstable economy.

4. You Could Get Opportunities to Advance

Finally, if you feel as though you’ve reached the furthest point of your job, you and your family could benefit from you getting a new job. This is because the potential for growth is one of the most motivating factors for most individuals when they get employed. It helps that with the growth comes a higher earning capacity so you can be sure of improving your financial state. You may enjoy improved mental health as well, something that your family will also enjoy a lot.

These four factors should motivate you to look for a new job as soon as possible. You could improve your quality of life and get the opportunity to do more as a person as well as with your family when you do.

7 Important Things You Need to Know Before Stashing Your Money in Offshore Accounts

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<p>A 2017 study revealed that the amount of cash in offshore accounts is equivalent to 10 percent of the world GDP. Most people use these accounts as tax havens, so it’s vital to learn more about them before opening one. Inasmuch as stashing money in foreign accounts is portrayed a shady thing, it isn’t entirely illegal to open a bank account in a foreign country. Using foreign bank accounts can make things easier for people who like traveling or for business owners who want to diversify their assets. In this post, we’ll cover more about offshore banking to help you navigate this area well. Read on!</p>::Pexels

A 2017 study revealed that the amount of cash in offshore accounts is equivalent to 10 percent of the world GDP. Most people use these accounts as tax havens, so it’s vital to learn more about them before opening one.

Inasmuch as stashing money in foreign accounts is portrayed a shady thing, it isn’t entirely illegal to open a bank account in a foreign country. Using foreign bank accounts can make things easier for people who like traveling or for business owners who want to diversify their assets.

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My 30th Birthday: Reflections

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30th Birthday Reflections

My 30th birthday is this Sunday. Many people see this birthday as a big milestone. A lot of people don’t look forward to 30 because it seems like you are supposed to be meeting so many goals and reaching them seems daunting. Others, like myself, try to take the day in stride. After all, turning 30 is better than the alternative.

That being said, I am always reflective around my birthday. I’ve been thinking about everything I’ve accomplished over the last year and the last three decades. I’m proud to say I’ve come a long way.

Remembering What’s Important

One of the things I have grown to focus on in the last year is remembering what’s really important in life. A lot of the time, my anxiety tries to take over and I have to take a deep breath and remind myself that it isn’t the end of the world.

More importantly, I need to remember why I work so hard, and why I do anything. I want to be able to provide a spectacular life for myself, my baby, and my family as a whole. So, when things start to get heavy, I’ve started to unplug and focus on the most important people and things in my life.

Financial Accomplishments And Beyond

Over the last year, our family has had a lot of changes financially. My husband got a full-time corporate job with benefits and it has changed our lives for the better. We were married to the idea that we both want to work for ourselves (and still do). However, holding down this job has made it possible for us to have the quality of life we want and deserve.

Slowly but surely, we are stacking up money for savings, paying off debts, and preparing to move into a new home later in the year (hopefully). Considering six years ago we were homeless and living in a motel, that is amazing! It still blows my mind sometimes when I sit back and think about it.

On top of that, I have accomplished a lot personally as well. I have stepped outside my comfort zone to make new friends, friends who have become important parts of my life. Throughout the year, I have also worked on communicating better and listening. These two things have served me well in various areas of my life.

Hey, 30 Isn’t That Bad

While I know I haven’t accomplished everything I’ve ever set out to do in my 30 years, it doesn’t matter. The things that didn’t work out weren’t meant to be. More than that, the sequence of events led me here – where I have a beautiful family, a fulfilling career, and everything we could need.

So, I won’t be having any breakdowns around turning 30. It’s not all that bad. In fact, from where I’m sitting, it looks fantastic.

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Finding Debt Counseling the Right Way

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<p>There are times when we must admit that we can’t do it all ourselves, especially when it comes to money. Sometimes you’ll need the help of a financial advisor or trusted friend to set up your finances and get you on the right track. However, if debt is your issue, you may want to look into debt counseling services.</p>::Pexels

There are times when we must admit that we can’t do it all ourselves, especially when it comes to money. Sometimes you’ll need the help of a financial advisor or trusted friend to set up your finances and get you on the right track. However, if debt is your issue, you may want to look into debt counseling services.

But how do you know what debt counseling service is right for you?

About Debt Counseling

If you’ve come to the point that you think you may need debt counseling, don’t worry. There are plenty of great organizations out there to help. For the most part, these are agencies with a number of counselors available to help you.

What a debt counseling agency does for an individual in debt is, instead of paying your regular debt collectors each month, you pay one bill to the debt management company. The company will also negotiate lower interest rates if possible. This can be a great way to consolidate your debt without taking out a loan.

There are some debt counseling agencies that have been exposed as scams though so you’ll want to be sure you’re picking the right one.

Why It’s Important to Pick the Right Agency

Of course, no one wants to be scammed but it is extremely important you pick the right debt counseling agency. If you are set up with a poorly run agency (or even a scam) you could run the risk of hurting your credit even more.

While signing up with the agency themselves won’t do any harm, the management of your debt repayment by the agency can impact your credit. Some scam agencies (or agencies that are poorly run) may turn your payment in late to the debt collector. This could cause your credit score to decrease because of late payment.

 

Finding a Debt Counselor

As with most things finance, you’ll want to interview the agency that will be helping you and do plenty of research. A simple Google search of “debt counseling” in your area won’t be enough. Each organization will want to chat with you. You will also want to make sure they are a nonprofit organization (no debt counseling agency you want to do business with is for-profit).

Generally, upon meeting your debt counselor, you will establish a debt repayment plan. Your counselor will be in charge of contacting debt collectors and haggling the interest rates down or removing fees. Once the negotiations are over, you can begin work repaying your debt.

As mentioned above, you don’t want to do business with a for-profit debt counseling agency. After all, what good is paying off all your debt if you have to shell out thousands to do it? You will be looking at $50 or less to sign up for debt counseling services and another $25 to $25 per month on counseling through the debt repayment plan. Some organizations, depending on your financial status, will offer the services completely free.

You may also be able to approach an organization if your financial situation allows. Individuals there will help you get back on your feet and establish a financial plan that works (but your income will need to be within their limits).

No debt counseling agency is the same so, chances are, if you are in need there is an agency out there that can help you. If you are looking for help managing or paying off your debt, go to the National Foundation for Credit Counseling website for more information about debt counseling services.

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