Hope for your financial life and beyond

How to Get Out of Debt

September 16, 2013 by 27 Comments

Debt thermometerIs debt casting a stranglehold on your finances? Take heart, you are not alone. Millions of Americans choose to remain shackled with boatloads of consumer debt and never do anything about it. Well, nothing substantive anyway.

You don’t have to ignore the mountain of debt piling up. In fact, it would be better if you didn’t because excessive debt will cripple the wealth building process. It will mess up your savings, the kids college funding, and even your retirement investing. In many cases, it also ruins relationships.

Perhaps people choose to ignore their plight because they are blind to debt’s affects in their life. Some probably enjoy the perks that come from excessive spending. Maybe in some cases, the mountains are so overwhelmingly high people don’t know where to begin climbing.

Whatever your circumstance, this post can help. The steps to get out of debt are easy enough to understand. However, they are more challenging to implement. And I’m probably not going to start at the place you would expect.

It all begins with attitude.

Step #1: Get angry

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Beating the Credit Card Reward System

May 14, 2013 by 23 Comments

Money Credit CardFive years ago, my wife and I were killing it with the rewards we were receiving on our credit cards. That’s right…free stuff! We exchanged our rewards for airline miles, countless merchandise items and even received cash back in our pockets on some cards. It felt great! We were really beating the system at their game.

However, through a series of personal events and some advanced education, I realized I could do even better. I found out there was (is) a way to get more cash back into my pocket and really stick it to the credit card companies. The best part about this system was that it also improved my monthly budget and helped me save more in the long run.

The system?

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Two Shall Become One: A Case for Financial Togetherness

April 11, 2013 by 25 Comments

wedding rings

Honest to goodness, I’ve been planning this post to come out today for a couple of weeks. And then, lo and behold, Grayson at Debt Roundup dropped a bomb on the personal finance blogosphere on Monday in a great post entitled “Love and Money - An Internal Debate.” So I used his post as a springboard for what I was going to talk about anyway. Thanks Grayson!

In it, he propositioned that he would NOT pay for his wife’s debt under most normal circumstances wherein people incur debt (car loans, student loans, credit card loans, etc.). His main reasoning for this stance was so that a lesson could be learned and responsibility taught to the spouse who had been reckless in running up debt. After all, marriage is about making each other better people.

Grayson and his wife sound like they are completely on the same page in regards to how they live out their financial life. They have set themselves up for success by communicating their values and beliefs to one another and then agreeing to move forward together based on what they believe. By all accounts, that’s a winning formula!

The great thing though about personal finance is that it’s personal.

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3 Reasons Credit Cards Didn’t Work For Me

December 18, 2012 by 4 Comments

Credit Card TrapTo use credit cards or not? That is the question.

Like most of you, I have placed a good many credit cards in my wallet through the years. I believed what every American hears - that using credit is convenient, it’s safer than carrying cash or debit cards, and there is protection on large purchases. I also figured I needed one for emergencies, and of course to improve my credit score for those all-important car and home loans.

Good people come down on both sides of this question and the purpose of this writing is not to discuss the pros and cons of each position. Rather, I would like to share with you why, after years of using credit cards for EVERY purchase, I just finally decided it wasn’t for me. I just couldn’t get past these three issues in my life.

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Scary College Debt Statistics

October 23, 2012 by Leave a Comment

In case you missed it, the cost of a college education is increasing dramatically. Public and private colleges alike are increasing tuition significantly, many because of state budget cuts. This has left many high school seniors in a bind. For years they have heard the media, their parents, their teachers and counselors say the best way to get a decent job with good pay is to earn a college degree. But now they wonder how they can afford it.

The Institute for College Access and Success’ Project on Student Debt conducted a recent survey that gives us insight into how students are paying for a college education. The results are astonishing and scary.

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Lend, But Don’t Borrow

October 5, 2012 by Leave a Comment

We live in a “Have It Now” culture. We want our fast food within 5 minutes or less in the drive-thru. We want to make quick money for as little work as possible. We drive fast cars so we can get to our destination sooner. We are first in line for the newest technology gadget the day it is released. Can’t wait…gotta have it.

This “Have It Now” culture has also skewed our reasoning ability, in that it has masterfully helped us change our “wants” into “needs.” We no longer want the new bass boat - it is a need. We no longer want the weeklong cruise to Bermuda - it is a need. We no longer want the $5,000 Hall of Fame rookie card - it is a need. We no longer want…(fill in yours here)…it is a need. Think through all of your major purchases in the past year. How many of them would truly be classified as “needs?”

Put these two things together - getting what we want quickly and “wants vs. needs” - and a real problem begins to arise for most everyone in society. We don’t have the money to pay for these items!

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Surety…Are You Sure You Can Get Out?

September 4, 2012 by Leave a Comment

The idea of becoming surety for a stranger, friend or family member has not been spoken highly of in the Bible. We have been warned about the potential dangers and risks involved in doing so. Despite these warnings, there will still be some people who think their situation is unique and choose to vouch for the debt obligation of someone else by cosigning for them. It is unfortunate that they would ignore this wisdom and put themselves at risk for financial and emotional harm.

So what do you do if you become surety for someone? Is there a way out if you regret your decision? Well again we turn to the wisest man who ever lived. In Proverbs 6:1-5, Solomon addresses this situation by saying,

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