Hope for your financial life and beyond

The Best and Worst Places to Save Money When Getting Out of Debt

July 22, 2023 by 26 Comments

Lets assume that you’ve finally decided getting out of debt is a priority. You know that saving money in the monthly budget by cutting expenses is a key component to the debt payoff process. But where do you start? What is the best place to start chopping away at your budget?

getting out of debt

The Headache Factor Equation will help you determine which spending categories to cut first.

Not all categories are created equal. For some expenses, you can find money savings quickly. Others are going to take a little more time and effort. Some budget cuts will be easy to endure while others might lead to some family frustration at the lack of spending for that category.

In order to better identify the best places to save money in the monthly budget, I’ve created what I call the “Headache Factor Formula.” This equation takes into consideration three factors that are each scored on a scale of 1-5, with 1 being positive and 5 being negative. The lower the cumulative score of the three factors the better when determining where to start saving money first.

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How to Know if Debt Consolidation Will Work for You

April 12, 2023 by Leave a Comment

Looking to pay off debt? It can be quite the challenge. But it is one of the most rewarding journeys in the end once you are on the other side of it.

The problem with paying off debt for some is the amount. The sheer number of dollars one owes can paralyze you. That is especially true if that debt is spread out over many accounts. It can be overwhelming when so many different bills are coming at one time.

That is where consolidating debt may makes sense for some. Consolidating debts involves getting a single account to pay off multiple old loans. It’s also one of the common reasons people acquire a personal loan. It allows them to consolidate all of their existing loans into a larger one that offers the best repayment terms or a lower monthly interest rate.

However, before consolidating your loans, remember that this option isn’t for everyone. If you want to know whether or not debt consolidation is good for you, here are some ways to find out.

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5 Benefits You Can Enjoy With an Increased Credit Limit

November 20, 2022 by Leave a Comment

For those who use credit, having a high limit is important. You want to have as much access to capital as possible so that you can purchase what you need to purchase. So paying off your debt with regularity will increase the odds that creditors will increase your credit limit to give you the margin you need. 

For some people, having a high credit limit is also a status symbol. It’s a sign that they are doing well financially and that credit card companies trust them to use their products responsibly. That may seem like a shallow reason but many people view their credit limits this way. But even if you don’t care about status symbols, there are plenty of good reasons experts say to increase your credit limit.

Whether you’re trying to improve your credit score or simply want more financial flexibility, an increased credit limit can be beneficial. Here are five benefits you can enjoy with an increased credit limit.

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6 Signs You Are Living Above Your Means

September 2, 2022 by 3 Comments

Let’s face it. We live in a fast paced, consumer friendly, debt-driven society. Spending money has never been easier.

above your meansThat might be why more than 60% of Americans deal with credit card debt on a daily basis. Access to credit has never been more available to the general public. Unfortunately, it is a main reason why living paycheck-to-paycheck is an unfortunate reality for nearly half of Americans.

However, that reality doesn’t have to be inevitable. Your situation can improve with some quick refinements to your spending habits. I’ve done it before and so can you. You don’t have to live above your means.

It does come down to a simple choice. But first you must be able to recognize that you have a problem. With that in mind, here are a few warning signs that may indicate you are living above  your means.

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I Have a Lot of Debt: Can Hard Credit Checks Impact My Credit Score?

July 8, 2022 by Leave a Comment

Debt has become the standard way for people to manage their financial life. Instead of cash, families and individuals are turning to credit more and more. It seems an easier form of payment, granting access to things when we need or want them.

But, the amount of debt is a major problem many Americans face. According to a 2022 financial report by CNBC, the average US household with debt owes an average of $155,622. That is up 6.2% from over a year ago. The debt includes credit cards, mortgages, home equity, lines of credit, auto loans, student loans, and other household obligations. This makes one wonder whether using debt is a wise path in the first place.

Regardless of where you fall on that issue, existing debt makes it harder to pass credit checks and get any additional financial applications approved.  Banks are less willing to extend additional lines of credit to someone already swimming in debt. So, you need to understand what you are facing if you are wanting additional financing for something. 

In this article, we’ll be diving into credit checks and how they impact your credit score. We’ll also see if there are any work-arounds to help you get the financial assistance you need.

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What Does the Bible Say About Debt? Wait Til You See

May 9, 2022 by 11 Comments

I turn to the Bible for a lot of questions in my life. After all, God has a lot more wisdom than I do. So why not tap into that knowledge? It seems that no matter what I’m dealing with, I can find some answers within the pages of the Bible.

what does the bible say about debtA few years ago, I’m reviewing our finances and this question randomly pops into my head, What does the Bible say about debt?  The truth is it wasn’t a random thought at all. My wife and I were trying to get out of debt so the topic was weighing on our minds. I knew what I thought about debt but didn’t really know what God said. So I decided to give it a look.

What I found was a little surprising and served as a wake-up call. Not only that, but at another level, it provided encouragement and hope. I realized there was a better path to take than the one I was on.

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How to Get Out of Debt and Win in Five Simple Steps

March 14, 2022 by 39 Comments

Are you up to your eyeballs in debt? Don’t see anyway out? If so, take heart. You are not alone. Millions of Americans live with this burden. They either never think about how to get out of debt or they think that it is impossible for them to get out of debt. So they never deal with it.how to get out of debt

It would be unwise for you to ignore the mountain of debt that is piling up. You need to wake up and pay attention because excessive debt will cripple your wealth building process. It will mess up your savings, helping the kids with paying for college, and even your retirement investing.

And sadly, in many cases, it also ruins relationships.

Debt is a chain of bondage around your life. It’s an anchor weighing you down. You can’t go where you really want to go because it’s holding you back.

In order to break free, you’ll need to change your perspective, your behavior and your systems for purchasing things. But it’s all possible. It will be a journey you will never regret.

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7 Steps to Take to Alleviate Your Financial and Job Security Worries

December 15, 2021 by Leave a Comment

The COVID-19 pandemic has caused severe and extensive damage to many people’s finances. Worse still, financial experts say the financial and economic effects could persist long after the pandemic ultimately subsides. It’s going to take some time for life to get back to what we would call normal. 

Aside from the obvious medical issues, the pandemic has shown us this – how an unanticipated event that is entirely out of our control can instantly knock us out. Emergencies are going to happen and we should always be prepared for crazy events in life. But for most that is not the case. They know these things are going to happen, but they don’t prepare for them.

There is a solution to the problem though, and it begins with addressing what you can do right now, in the moment. You don’t have to be left helpless by a negative life event. You can be prepared if you take the right steps.

What are those steps? Here are seven things you can do to be prepared as possible when life circumstances impact your income. 

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How To Use Your Home’s Equity To Consolidate Debt

August 29, 2021 by Leave a Comment

If you want to get rid of high-interest debt, the idea of debt consolidation can be all you need. Since home equity loans are available with minimal interest rates and long repayment schedules, these can be a great tool to use.

For those who do not know, a home equity loan is a form of a loan secured by your home. The money you receive from the home equity loan can be applied for several purposes. This can include remodeling or expanding your home, paying off credit card debts or consolidating multiple loans.

In this article, we will talk about how you can use your home equity to consolidate debt. You can also visit this page for more comprehensive information on this topic. 

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Should I Cosign? Here Is the Truth About What God Says

June 17, 2021 by 21 Comments

“Do not be one of those who shakes hands in a pledge, one of those who is surety [ cosign ] for debts.” – Proverbs 22:26

If you’ve ever had a situation where a friend or family member asked you to cosign a loan, you know it’s a tough spot to be in. On the one hand, you want to help. But the idea of being responsible for someone’s debt has you a little squeamish.

cosignSay “No” to them and it seems like you don’t care.

Say “Yes” to them and you are opening yourself up to financial risk.

Maybe as you thought about what to do, you should have considered asking this question: “What does God have to say about it? Would He want me to cosign for this loan?” It may never have occurred to you to seek advice from a higher power.

The truth is God talks a lot about money in the Bible. He even has advice about cosigning which really surprised me when I found it. For anyone really, the real world application is sound. But especially for people of faith, His advice is worth listening to.

God’s Advice on Whether to Cosign

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Tips for Managing Your Debt Responsibly

April 25, 2021 by Leave a Comment

Whenever you look for financial advice, you probably see articles that advise you to avoid debt. In fact, I’ve written a lot about that here on this site. In fact, getting out and staying out of debt is a common characteristic that is listed among those who have reached millionaire status.

With that being said, it is becoming increasingly difficult – if not impossible for some – to get a college education or buy a house without borrowing money. College tuition continues to escalate, putting the funding of it out of reach for those families who did not start saving early enough. So many turn to the federal student loan program to fund part or all of their college education. 

Additionally, many see renting as “throwing away money.” I’m not one that subscribes to that. There are times when renting is the wisest choice. But it’s a hard mental hurdle to overcome. A mortgage where you can have a forced savings plan by paying yourself each month through the reduction of the principal, seems like the best course of action.

In many people’s eyes, the two types of debt listed above are considered “good debt.” In other words, they are the type of debt that can lead to further benefits down the road. Let’s explore that concept some more. And let’s look at some tips that can help you know when it might not be such a bad idea to borrow and how to manage the debt that you have.

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