Our Debt Free Family

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The Great Debate: Dip Into the Emergency Fund or Take on New Debt?

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<p>In a “debt freedom” community, it is hard to ever feel good about taking on new debt. I cringe at the idea of adding anything onto our current payments, but an emergency has happened. Now we are finding ourselves wondering, should we bottom out our emergency fund or take on new debt?</p>::Pexels

In a “debt freedom” community, it is hard to ever feel good about taking on new debt. I cringe at the idea of adding anything onto our current payments, but an emergency has happened. Now we are finding ourselves wondering, should we bottom out our emergency fund or take on new debt?

Cons of Dipping Into the EF

We recently moved to Atlanta from Charlotte, which costed a bit more than we anticipated. Because we are far from our family and friends, our main goal was to pad our emergency fund and leave it there. If anything happens, we can no longer call someone to come help. We have to rely on ourselves 100 percent.

That being said, after a visit with the dentist, I need all four of my wisdom teeth out. The bottom two are threatening my ability to breathe and the top two are causing my sinuses to swell (it is becoming an emergency). I got antibiotics, which helped the swelling but I need to have oral surgery.

We don’t have health insurance yet from my husband’s new job, and we don’t know if purchasing it will be worth the money honestly. So, for this, I have to pay out of pocket. After doing some research, I realized this will likely cost between $800 and $1,000 (our entire emergency fund).

While I don’t really want to take on new debt, dipping into our emergency fund would make us both pretty uneasy. We’d have nothing to fall back on.

To Take on New Debt or Not…

After chatting with the oral surgeon, I inquired about a possible payment plan. They don’t do anything in-house but I could apply for a Care Credit Card. The words “credit card” send chills up my spine, but if it made it possible for us to have peace of mind, I think it would be worth it.

Now, I have to be approved for the credit (which is up in the air), but if it is paid in full within six months, I’ll pay zero interest. Paying $800-$1,000 in six months will be no issue for us, but adding another thing to pay each month is causing some anxiety.

When it comes down to it, if I’m approved, we will go the payment route, even though it means taking on new debt. Sometimes peace of mind and your health come before your financial goals. We’ll come to terms with that.

Have you had to take on new debt for an emergency? 

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Financial Infidelity Is Real! Make Sure You’re Not Doing It

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Financial Infidelity Pinterest image - Our Debt Free Family

I came across a post recently that talked about committing financial infidelity. The blog post mainly focused on one person’s story, but I got to thinking about my past relationships, my current marriage, and what kind of infidelity of experienced – and committed – financially. It was a toe-stepper.

What Is Financial Infidelity?

According to Investopedia, the official definition for financial infidelity is this: it occurs when couples with combined finances lie to each other about money. Simple enough! This could mean anything from using joint funds to physically cheat, hiding money in a separate account, covering up debt, or spending crazy amounts of money on personal items.

Marketwatch Discusses How To Mend Wrongdoings

Many of my recent posts have been reflective (it’s just that time of year for me). However, after reading the post on Marketwatch about this person’s admitted financial infidelity. Here is a clip from the post:

I have committed financial infidelity. This is a second marriage, and one of my sons is unstable and a substance user. He has stolen from us in the past, and two of his children are now living with him.

He doesn’t work, is on public assistance, and demands money from me. He gets very abusive when I don’t give it to him. This is the second time I have gone into debt behind my husband’s back.

They go on to share that, in order to help their child, they have racked up $50,000 in credit card debt that their spouse doesn’t know about. While I haven’t had anything exactly like that happen to me, I have experienced financial infidelity in my life.

My Experiences With Financial Infidelity

On my end, I have committed this plenty before getting together with my husband. I did not communicate about financial transactions, hid money away for a get away, and spent $400 on a painting because I felt entitled to the money in the joint account. All of this without permission, without consent.

Prior to meeting my husband, I was living with a long-time boyfriend. We had combined a lot of our finances, but we were never married (something I’ve learned from). Throughout our relationship, he hid money and spent money on various inappropriate things while I struggled to pay our rent while waiting tables, working a catering job, and going to school full-time. Many times, he lied to me about having money and I would have to ask friends or family, only to find out he had money all along.

He also had me co-sign on a car loan for him and when he failed to make the payments, he allowed them to repossess the car and drove mine into the ground. It is crazy how different my financial relationship with my husband is. We’ve never committed financial infidelity, and there are things you can do to avoid it.

How To Avoid Doing ‘It’

The biggest thing we do in our marriage to ensure these things don’t happen is we communicate about everything, especially when it is money related. Now, it is a little less strict than it used to be because we have more cashflow in our home. So, smaller purchases didn’t need to be talked about. However, when we first got together, there were times we had to discuss a $10 purchase.

These days, we don’t have to talk about every little thing we buy, but we discuss big purchases – even gifts. Sometimes, we still catch each other checking with the other person about a $20 spend even though it isn’t necessary. This is because communication is key to success in your marriage and with your finances.

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5 Side Jobs That Can Help You Get Out of Debt

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American is said to be the land of the free.

It’s also the land of the indebted.

The average consumer debt per capita stacks up to nearly $12,000. Altogether, that same source reveals how consumer debt amounted to a staggering $3.9 trillion by the end of 2018!

Clearly, countless households around the country are held captive by their finances.

Debt is a slippery slope. It’s all too easy to take on more of it to try and dig your way out. A simpler solution may be to get focused and get another job.

But what could you do? Read on to discover 5 side jobs that can help you get out of debt.

1. Virtual Assistant

Got a knack for administrative work?

Then why not take your skills online? Many businesses and individuals are outsourcing their admin to people online. All you need in an internet connection.

As a virtual assistant, you can expect a range of roles. From managing social media accounts to answering emails and doing research, it depends entirely on the needs of the client.

Expect mundane, tedious work, but regular payments! The more clients you get, the more money coming your way.

2. Tutor

Have you thought about teaching your way out of debt?

You don’t necessarily need to be an expert on anything. A bit of passion, a dose of enthusiasm, and a splash of insight, is often more than enough to make you a great tutor.

You could spend your evening tutoring on particular subjects. Paid by the hour, you can even do it online these days. Keep track of your payments with paystubcreator.net.

3. Start a Blog

Blogging is hard work.

But once you’ve learned the ropes and have yours set up, you can earn a steady stream of income from it. Expect it to take a while. But it’s a business model that takes nothing but time (and a bit of cash) to get set up.

From there, with advertising and affiliate marketing, you can say hello to passive cash coming your way.

4. Dog Walker

Dog walking is a popular side job all over the globe.

For one, it’s easy to get into.

You also get to hang out with man’s best friend, get outside and earn decent money in the process. Many people simply don’t have time to give their dogs enough exercise.

Advertise your services, develop a client base, and you can be doing it for them.

5. Hospitality

You may balk at the idea of hospitality.

All those forced smiles and customer-focused approach…It can be tiresome. But they’re also widely available positions that require no qualifications or experience to start with. A friendly demeanor and hard-working approach are all you need.

Apply to bars, cafes, restaurants, and hotels to see what’s going in your neighborhood.

Time to Get Out of Debt

There you have it: 5 side jobs to help you get out of debt without too much trouble.

Millions of Americans across the country are struggling with crippling debt. It’s all too tempting to buckle under the pressure and go into more debt to pay off existing loans. If at all possible, don’t do it!

Getting a second job may be a much better approach. Hopefully, the side jobs we’ve highlighted here have given you some ideas on what you could do.

Like this piece? Need some incentives? Click here to read why being debt free is so awesome.

Is There a “Best” Way to Pay Off Debt?

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<p>When it comes to paying off debt there are a lot of people that insist one method is better than another. Some people focus on the debt snowball or avalanche method. Others tend to have more success with consolidating. Is there a “best way to pay off debt?”</p>::Pexels

When it comes to paying off debt there are a lot of people that insist one method is better than another. Some people focus on the debt snowball or avalanche method. Others tend to have more success with consolidating. Is there a “best way to pay off debt?”

Personal Finance is Personal

In short, no. There are methods that many people have found to be successful for them in their own personal debt freedom journies. At the end of the day, personal finance is personal. You have to find what will work for you and improve your financial situation. Not everyone will be motivated by paying things off slowly, so the avalanche method may be best. Others need to lower their immediate monthly payments to improve their quality of life. For them, consolidating may make the most sense.

The key to figuring out the best way to pay off debt for you will be addressing your current needs and identifying a method that will meet those needs. You won’t have success if you simply follow someone else’s plan. There is a need to alter different methods to fit your family’s needs.

What is the Best Way to Pay Off Debt?

As mentioned above, there is no “one size fits all” to paying off debt. However, there are some tried-and-true methods that have seemed to work for a lot of people. Of course, you’ll need to tweak each of them to cater to your specific needs, but here are some of the best debt payoff methods.

  • Consolidation: This involves taking out a larger loan and consolidating all of your debts into fewer payments. For instance, we would take out a $40,000 loan and pay off our car, student loans, and other small debt. Then we would have one monthly payment on the $40K loan. This can free up money month-to-month to make your immediate financial situation a bit easier.
  • Dave Ramsey: Dave Ramsey’s method of paying off debt is fairly rigid but it has worked for a lot of people. You need to be extremely strict and focus all of your finances on paying off debt. Once that is complete, you have more money freed up to do the things you want. For some individuals, this is great, but it is difficult. You have to go without a lot of things to make debt payoff your #1 priority without putting money towards anything else.
  • Debt snowball: The debt snowball is one of the more popular methods. This method focuses on paying off specific debts all at once, usually in numerical order (by the amount owed or interest). When you use the debt snowball method, you’ll pay off your smallest debt first and then climb up to paying your largest debt off, while maintaining minimum payments on your other accounts.
  • Debt avalanche: Similar to the debt snowball, the debt avalanche takes large sums of money you receive and puts it towards paying off your debt. So, if you get a work bonus, it would go towards paying off one of your accounts. Any windfall you get would go towards one of your debts.
  • Settlement: Sometimes, the best way to pay off debt is to go through a settlement company. If your debts are too overwhelming or you simply can make the minimum payment, communicating with the company is your best option. You won’t hurt your credit as much and the account will be taken off your plate.

Before you choose what the best way to pay off debt will be for your family be sure you consider your budget, needs, and savings. Again, personal finance is personal so treat your debt payoff plan that way too!

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Do You Need an Online Course to Improve Your Finances?

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<p>If you are someone who is trying to improve their finances, you know there are a plethora of online courses you can take. Each one of them claims to be able to help you fix your money situation overnight or “give you the tools you need to reach financial freedom.” With all of the free information out there today, it is hard to believe they are providing anything that a Google search can’t. So, do you really need an online course to improve your finances?</p>::Pexels

If you are someone who is trying to improve their finances, you know there are a plethora of online courses you can take. Each one of them claims to be able to help you fix your money situation overnight or “give you the tools you need to reach financial freedom.” With all of the free information out there today, it is hard to believe they are providing anything that a Google search can’t. So, do you really need an online course to improve your finances?

Popular Online Finance Courses

We recently talked about Dave Ramsey vs. the rest of the personal finance influencer community. However, despite him not being super popular with a select group of people, his “Financial Peace University” course is one of the best-selling online finance classes out there today. It is also one of the most straight-forward courses available. He provides pretty basic PF advice and then helps you implement those changes in your life.

 

The Perks of Buying an Online Course

One of the biggest perks of purchasing an online personal finance course is that you typically get hands-on help and advice. Usually, these programs provide you with a counselor or mentor to help you with your money habits. Then you are assigned “homework” to look over and take action with your own finances.

Having someone to check-in with who knows what they are doing can be extremely helpful, especially if you struggle with the basics (budgeting, tracking spending, saving money, etc.). At the same time, you will be getting the knowledge and tools you need to be able to manage things on your own.

Do You Need One?

Anyone considering a paid course should take a few things into consideration before moving forward.

  1. Can you truly afford the class? Putting yourself in a bad spot financially to purchase an online class isn’t the best idea.
  2. Is the person selling the course reputable? You don’t want to give someone money for an online course when they don’t have any credentials to back up the information they are providing. Look for testimonials and read about the course’s history.
  3. Have you tried looking for free information? Search for the info you are looking for online before spending money on a course.

Lastly, remember that your financial journey may not look like someone else’s. There is no “one size fits all” financial plan. Any course selling that should be avoided.

Readers, have you taken any financial courses that you have benefited from? I’d love to hear about them in the comments!

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’13 Reasons Why’ Being Debt Free is Awesome (and I Can’t Wait for It)

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Being debt free is awesome

Debt freedom. Those two words literally make me grin ear-to-ear, and who wouldn’t? Can you imagine what your life will be like once you’re no longer being crushed under credit card bills and car notes? Here are 13 reasons why being debt free is awesome (and I can’t wait to get there).

13 Reasons Why Being Debt Free is Awesome

Although I haven’t gotten there (yet), I’ve heard plenty of people talk about how great it feels to have the heavy burden of debt lifted off your shoulders. Here are a few reasons why it feels so awesome…

1. You are free to truly live.

When you aren’t bogged down with your finances you are free to enjoy other things in life. Maybe the stress of your debt made it impossible to go on vacation or practice good self-care. Without debt, you’ll have the ability to do what you want to do when you want to do it.

2. You feel accomplished.

Most people who have accomplished the feat of debt freedom say there’s nothing else like it in the world. Once you’ve paid off your last account, the sense of accomplishment is astounding. It is enough to boost your self-esteem and help you gain confidence where your money is concerned.

3. Being debt free strengthens your marriage and relationships.

This is especially true if you worked on being debt free with someone. For instance, my husband and I are working together on our debt-free goal. At the end of this journey, we will come out stronger (and avoid debt like the plague).

4. You’ll have more money.

When you’re not paying on your credit cards or other debts every month you’ll have more cash flow. At first, it is important to take this extra cash and fully fund your emergency savings (3-6 months of expenses). After that, you can spend freely, invest, and build wealth.

5. Debt free folks have more fun.

It is true! You’ll be able to take that vacation you’ve been postponing without worrying about being able to pay the bills. Not to mention, you won’t have to check your bank account before you go out with friends. You can have peace of mind where your finances are concerned.

6. The feeling of financial security increases.

Being debt free is awesome because it makes you feel more secure in almost every aspect of your life. Financial security increases, security within relationships, and feelings about yourself all become more positive.

7. You can make changes you’ve been wanting.

Many people who become debt free find themselves changing jobs or moving once they’ve reached their financial goal. If you’ve been putting off going after your dream job or moving to the beach, becoming debt free can help you make those changes.

8. Now you have the opportunity to build wealth.

Now that your debt isn’t weighing you down you have the opportunity to begin saving, investing, and building wealth.

9. Maybe you can retire early!

While you’re building wealth, you’ll also be building your retirement fund. Most people who become debt free early on find they are able to retire early.

10. There are fewer risks and more peace of mind.

When you’re holding on to a lot of debt there is always something worrying you. With less liability hanging over your head you’ll have peace of mind.

11. Your stress levels will drop significantly.

Because of the peace of mind you’ll receive from being debt free, your stress levels will drop. You won’t be biting your nails over the next credit card bill or whether or not your car is going to be repossessed.

12. Being debt free is awesome for your mental health.

All of this has a profound impact on your overall mental health as well. Many people find they are no longer depressed, have more energy, and feel happier. (Remember, debt is not a death sentence.)

13. You’ll be able to live your best life being debt free.

When all is said and done, paying off your debt will free you up to live the best life you possibly can. You will have the freedom to do whatever it is you want to do (within reason, obviously). Take the trip you’ve always wanted, send your kids to college, retire early, and live the way you want to.

For those that are already debt free, what is your favorite part about it? 

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25 Alarming Facts About Debt in America

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<p>The total household debt rose by $148 billion in the first quarter of 2023 alone. Since the end of 2019 (COVID-19), the debt increase by 2.9 trillion.</p>::Pexels1. The total household debt in America is 17.05 trillion.

The total household debt rose by $148 billion in the first quarter of 2023 alone. Since the end of 2019 (COVID-19), the debt increase by 2.9 trillion.

 

2. In 1Q 2023, over 102,000 consumers had a bankruptcy added to their credit report.

While credit reporting regulations have restricted third parties reporting delinquencies to the credit bureaus, the number remains high and is up 2000 from the previous quarter.

 

3. The value of outstanding student loan debt sits at $1.604 trillion.

President Biden’s most recent plan is set to cancel $39 billion in student loan debt. Without looking at the bigger picture, one may think $39 billion is a substantial amount, but it is less than 2.5% of the total student loan debt. The student loan forgiveness plan outlined by the president is also facing another lawsuit.

 

<p>That total represents a sharp drop from the previous quarter and is the lowest seen since 2014. Alarming? Yes. Surprising? Absolutely not considering mortgage interest rates and home prices today.</p>::Pexels

 

4. Total value of all new mortgages on consumer credit reports for 1Q 2023 is 324 billion.

That total represents a sharp drop from the previous quarter and is the lowest seen since 2014. Alarming? Yes. Surprising? Absolutely not considering mortgage interest rates and home prices today.

 

5. The average American household has around $10K in credit card debt.

 

6. 15% of Americans Have Been in Credit Card Debt for more than 15 Years

 

7. The Average debt for a credit card holder with an unpaid balance is $7279

 

8. The Average Interest Rate on a Credit Card as of May 2023 is 22%.

As inflation remains high, there is very little chance we’ll see noticeably lower credit card interest rates anytime soon. We haven’t seen similar numbers this high in decades. With interest rates being lowered since the last reporting period, there is a chance we might see a slight decrease in credit card interest rates.

If you’re looking for a great no-annual fee credit card, I highly recommend the Chase Freedom Unlimited. You earn a $200 bonus after spending $500 on purchases in the first 3 months from opening your account. Other highlights are a 3% cashback on dining at restaurants, including takeout and eligible delivery services, drugstore purchases, and 1.5% cashback on all other purchases.

 

9. The Personal Savings Rate is at 4.3%.

The Personal Savings Rate is calculated by subtracting taxes and personal outlays (spending) from your gross pay. The current savings rate will need to increase by roughly 100% to reach the annual national average spending rate of 8%.

 

10. Recent college graduates overestimate their starting salary by $30,000

 

11. 56% of all Americans carry a credit card balance

 

12. 24% of consumers have no savings set aside for emergencies

 

13. 39% of consumers have less than a month of income saved for emergencies.

 

14. People expect to die in debt.

It has become increasingly common for people to die with debt to their name. Around 73% of Americans are expected to be in debt until the day they die.

 

15. The average federal student loan debt balance is $37,717

 

16. Auto loans account for 9% of all household debt

 

17. Outstanding Payday loans debt reached $500 billion in Q1 2023, a 13.78% year over year.

 

18. Around 60% of Americans plan to rely on Social Security as their main source of income in retirement.

 

19. 43% of nonretired Americans don’t believe they’ll  have enough money to ever retire.

 

20. A survey found that medical debt was a factor in 70% of foreclosures.

 

21. Medical debt has the biggest mental impact on Americans.

According to The Motley Fool, only 64% of people with medical debt express satisfaction with their current lives. Compared to individuals with other types of debt, it seems owing medical bills have the biggest mental impact.

 

22. Resident of Connecticut hold the highest average credit card debt.

The average credit card debt in Connecticut is $9.408 New York is trailing closely in second place with the average credit card being $9,165.

 

23. 40% of consumers with no emergency savings have debt 60 or more days past due.

 

24. There are more two times as many payday lenders than McDonald’s.

It may surprise you to find out that there are actually more payday loan centers than Mickey D’s in the U.S. That means there are more than 14,000 payday loan storefronts in the country.

 

25. In 3Q 2022, the Treasury Department paid a record $213 billion in interest payments on the national debt.

 

Final Thoughts on Debt in America

How do we break this debt cycle? The best answer I can provide is through education and utilization of efficient resources. If more Americans are better educated earlier on in life about personal finance, money management, and debt they will be better equipped to deal with it as adults. Give the kids a head starts with these 3 book recommendations:

 

Discipline is also a vital part of reduction. It cultivates consistent payments, curbs impulsive spending, and maintains focus on long-term goals, ensuring a steady path towards financial freedom and peace of mind. Check out out review of Self Inc; a great way to build savings while improving your credit scores. The average user sees their credit score increase by 49 points.

 

<p>Discipline is also a vital part of reduction. It cultivates consistent payments, curbs impulsive spending, and maintains focus on long-term goals, ensuring a steady path towards financial freedom and peace of mind. Check out out review of Self Inc; a great way to build savings while improving your credit scores. The average user sees their credit score increase by 49 points.</p>::Pexels

 

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Debt-Free and Bored: How to Manage Life After Debt Freedom

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debt-free and bored

You are probably still daydreaming about what it might be like to be debt-free. Surprisingly, many of the people I chat with once they reach financial freedom, find it a bit boring. That is usually the case with reaching a goal. What does the villain do once he or she finally conquers or destroy the planet? Here are a few things to consider if you’re debt-free and bored already.

What it Means to be Debt-Free and Bored

You may be thinking, “how can you be bored with being debt-free,” but it is possible! The road to debt freedom is anything but boring, it may even be exciting once you get the flow going. So, once you pay everything off, some individuals find themselves wondering, what next? You dedicated your time, energy, and made sacrifices to one day not have the heavy burden of debt over your head. But now you suffer from boredom or feeling empty because in your unconscious mind, you naturally miss the challenge and constraints because it became part of your life.

Many people actually slip back into debt at this point (almost as if they are looking for another financial challenge). They’ll begin doing things they never would have done before paying things off. So, why now? We could get into neuroscience, dopamine, biochemicals, and how the brain respond to sudden changes that reduces stimulation, but to keep this on the surface, you’re simply bored and looking for another rush.

Financial freedom is a great feeling but it also removes structure from the financial management aspect of your life if you’re not naturally good with money. When doubling down and budgeting to pay off debt, you knew where where funds were being allocated and typically have a few problems to solve. But, once you’re debt-free, things can get a little boring after a while. You may now start wondering if you could now finally afford that new vehicle or vacation. There is nothing fun on your credit report to look at, and you start to get an itch. What you’re doing here is looking for activities fill the void left after destroying your debt.

How to Remain Debt-Free and Feel Excited

If you want to stay debt-free without the urge to accumulate unnecessary and uncontrollable debt, it can be difficult.  Here are a few things you can do if you find yourself debt-free and bored…

  1. Plan something you have to save for. Whether it is a vacation or a new car, you can always find something exciting to save up for. If not having a new financial issue to solve is the problem, finding a reason to save can help with your boredom and return to a more frugal mindset.
  2. Try your hand at real estate. If you don’t know where to start, check out currently discount courses from renowned author and real estate investor Robert Kiyosaki.
  3. Become an even smarter shopper. There are tons of freebies and great deals to take advantage of in the credit card points and airline mileage space. The Chase Freedom Unlimited is my favorite no annual free credit card. You can earn a $200 bonus after you spend $500 on purchases in the first 3 months. Simply use the card to cover your everyday purchases and you’re well on your way to pocketing $200. Click here to view all the benefits and sign up today.
  4. Take on DIY projects. Homeowners can take advantage of the freed-up cash they have from paying off their debts to make some improvements around their home. Maybe not that dream bathtub you’ve always wanted or  a full kitchen rehab, but small beautification projects and updates within budget can bring on a renewed feeling of accomplishment.
  5. Invest. Generally, once you’ve paid off your debt, you can start looking at different ways to invest and to accumulate wealth. The stock market can be an exciting rollercoaster ride if you’re feeling bored and need a new challenge.
  6. Bet on yourself. Maybe you’ve always wanted to quit your job and travel or start your own business. Without any debt attached to your name, you can bet on yourself. Take some of that extra cash and put it towards your next adventure, whatever it may be. Start a website or a blog.
  7. Donate. Now that you can, responsibly donate some of your money to good causes. Take time out of your day to volunteer your time assisting the needy. Help a loved on or even strangers struggling with their debt. Tell your story to others and provide inspiration.
  8. Find new challenges in life. You aren’t bored because you’re debt free, you’re bored because your brain crave a new focus. You placed all your eggs in the debt reduction basket and now have no use for it as you’ve reached your goal. Try a 26-week savings challenge that could make you $10,000 richer in 26 or 52 weeks depending on your allocation.
  9. Cash Free Debt Free. As the term suggests, one of the best ways to prevent a debt relapse is to remain cash-free. Not cash-free as in the lack of income, but cash-free as in keeping your money occupied and out of mind. If the stock market isn’t your cup of tea, try high-yield savings accounts and CDs. Raisin.com provides exposure to FDIC insured institutions offering high-yield interest rates above 5%. I like Raisin.com for its easy to use interface and access to multiple institutions to diversify your funds without creating multiple accounts across different banks. Click here and enter my referral code earlm014354 to earn up to $125 in bonus cash when you sign up and meet the deposit requirements.

 

40 Funny Debt Free Quotes With a Twist to Keep You in Good Spirits

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40 Hilarious Debt Free Quotes to Brighten Your Financial Journey

 

There is no doubt that debt and financial challenges can sometimes leave you feeling hopeless and depressed. Worrying over uncontrollable aspects of your finances consumes energy and rarely ever yield solutions. Focus on what you can change, and nurture a more balanced financial outlook. We aren’t quitting our day jobs anytime soon to start a rap career but here are 40 debt free quotes that rhyme.

 

 

From low to high, credit score’s a sweet blue sky

 

Debt-free and dandy, let’s toast, pass the brandy

 

Financial freedom rhymes, the melody of good times

 

From bad to fab, credit score ended rehab

 

Debt-free focus, like magic, hocus-pocus

 

 

No debts, no frets, just plenty chicken nuggets

 

Debt-free zone, where bills dare not roam

 

Credit score on fire, financial desire, I should retire

 

Debt-free bliss, no more budgeting amiss

Broke no more, debt shown the door

 

Debt-free living, the best way of giving

 

No debts, no tears, just laughter for years

 

Debt-free, no pain, all gain

 

In debt’s rearview mirror, life’s getting clearer

 

Debt-free delight, sleep well at night, no frights

 

Credit score fun, life’s a pun, debts on the run

 

No debts, no strife, just laughter for life

 

 

 

 

From debts, we’re free, let’s raise a cup of tea

 

Debt-free ambition, fueled by funny intuition

 

In debt’s escape, joyous laughter takes shape

 

Broke no more, freedom’s knocking at the door

 

Debt-free dream, silliness and chocolate ice cream

 

No debts, just cheer, let’s celebrate with beer

 

Financially wise, laugh lines in our eyes

 

Debt-free we roam, making memories to call our own

 

More money saving, no more ramen,  lobster craving

 

No debts in our hood, just chilling, feeling good

 

Debt-free and fancy-free, living life with glee

 

No more bills to dread, finally a comfy bed

 

Bills, we shun, living large, having fun

 

No more empty wallets, Dubai trips, I got it

 

 

 

No more being broke jokes, just stocks and 401K growth

 

No more broke endeavors, just yacht parties, steak dinners

 

No more coupon clipping, old rip van winkle sipping

 

From Wallet so thick, no more nickels to pick, I’m feeling slick

 

Debt no more, life’s a grand tour, financial freedom encore

 

No more broke nights, I’m loving these first-class flights

 

Debt-free shenanigan, 71st floor office life, gray cardigan

 

FICO score to the top, no flop, millionaire status, my next stop

 

From debt’s despair, financial flair, life’s finally in repair

 

 

 

Conclusion

Laughter is important as it promotes emotional well-being, reduces stress, enhances mood, and even strengthens social bonds.  Stressing over money issues is counterproductive to one’s well-being. Instead, focus on proactive financial planning, seek advice from professionals, possibly take on an easy remote side job, and adopt healthy money management habits.

 

 

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Debt-Free Homeowner? 5 Tips to Pay Off Your Mortgage Early

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Owning a home is one of the greatest goals to achieve in one’s lifetime. More interestingly, home loans have helped many people achieve this American dream faster than it would have taken to accumulate sufficient savings to purchase with cash.

However, home prices have been increasing faster than income over the years. This has resulted in the need for higher loan amounts to purchase homes. With the average mortgage term hitting 30 years, repaying your home loan may feel like forever. 

For every problem, there is a solution ― these ten(10) tips will help you lower the debt and pay off your mortgage early.

But before you try them, it is essential to note that a mortgage lender may include a prepayment penalty in the loan term.

A mortgage loan prepayment penalty is a fee a mortgage lender charges when you repay all or part of your loan before the agreed loan term ends. The loan comes with interest rates; the more the years, the higher the chance of charging more interest.

Hence, early payment implies the lender will be getting a lower interest in total; therefore, the prepayment penalty is a cushion.

Contact your mortgage lender and ensure you reach an agreement before you start executing plans to pay off your mortgage early.

Another important thing to mention is that while repaying your mortgage, ensure you have enough funds budgeted for your roof inspection and other home maintenance.

Ways to pay off your mortgage early

1. Cancel mortgage insurance premium

Many lenders will mandate borrowers to get Private Mortgage Insurance (PMI) if the down payment is less than 20 percent of the home’s purchase price. The insurance protects the lender in case you stop paying. 

It costs between 0.5 to 2.25 percent of the entire mortgage loan annually and is repaid as part of the monthly mortgage payment.

For context, if you purchase a home worth $350,000 with a 1.5% PMI fee, in addition to your mortgage, you will be a PMI fee of $5,250 annually or about $438 each month.

Some lenders automatically remove the PMI once you have 22 percent equity in the home. But you can request it to be removed once you have 20 percent equity in the home.

The PMI fee can then be redirected into repaying your mortgage loan.

2. Lower your housing cost

You can reduce your home maintenance cost and use your savings to repay your mortgage.

Consider reducing your energy bill by using energy-efficient appliances. Always turn off your tap and repair any leaks as soon as possible to reduce the water bill.

For general home maintenance, check those you can DIY and others you can achieve on a budget.

Also, cut your cable and internet costs, especially if you do not usually use them. Cancel any subscription you are not using and take advantage of discount offers whenever available.

Likewise, avoid impromptu purchases. Only buy what you need and not what you want. You need all cash you can squeeze to hasten your mortgage repayment. 

If you can save $500 by cutting unnecessary costs and using DIYs for some repairs, that is about $6,000 yearly. This can significantly reduce the number of years to repay your mortgage loan.

3. Earn passive income

Increasing your monthly income can help you increase the extra payment for your home loan.

You can work overtime if your company permits it or take a part-time job for your free hours and days. Rent out unused spaces in your home, and invest in dividend-paying stocks or bonds if your finance permits.

Depending on your skills and career situation, you can leverage online freelance opportunities.

If you are an expert in your field, consider writing a book, consulting for startups, or organizing paid webinars.

Blogging and vlogging are other ways to share your experience and, at the same time, generate passive income.

4. Increase your payment

Split your monthly mortgage payment into two and make biweekly payments. Understand the number of days and weeks in a month varies. Therefore, if you do this, you will end up paying 13-month worth of the loan in a year.

Another method is increasing the principal each month or annually. If your lender agrees, this does not only help you pay off the loan faster; it may also reduce the total interest over the life of the loan.

5. Refinance your mortgage

Refinance your mortgage into a new one with a lower interest rate and better loan term. This can be a good option if you have a bad credit score when you get the first mortgage. Now that your credit score has improved, you may be qualified for a better interest rate.

Invariably, a loan with a lower interest rate can be repaid faster than another with a higher interest rate.