With layaway being done away with, most big market franchises are implementing a buy now, pay later option. Watch BNC Video below as host Tashanea Whitlow interviews me about if this new wave of paying is going to hurt credit, or help it.
Financial freedom is right at the front door for many Americans. However, DEBT is the lock that it keeping them from unlocking that door to experience the pleasure of financial independence and security. Not only are many people drowning in credit card and other debt as #MatureMoney (aka Adults), the debt amount is increasing for #YoungMoney (aka Young Adults) thanks to Student Loans.
In this episode of Financial Fornicating with Madam Money, my #YoungMoney guest Candice Marie of YoungYetWise.com shares these KEYS to eliminate debt and open the door to Financial Freedom:
- How to tackle paying off debt.
- How to deal with obstacles and still stick to the course.
- Who your accountability partners should and should not be.
- Why accountability is powerful and helpful.
- and more…
Candice Marie shares her vulnerabilities of your Debt Elimination Journey to help others reach their Debt Freedom Goals!
[ctt template=”8″ link=”I8E4e” via=”no” ]”Sometimes sharing your vulnerability is the super power that will save someone’s life.” – @MsMadamMoney[/ctt]About Candice Marie
6 years ago Candice Marie didn’t want to check her net worth because she knew it would be in the negatives. She created a blog called Young Yet Wise to help her stay on track and learn more about her own money. Today she has a positive net worth, built up savings, investments and paid off $47,500 worth of debt and is now on a mission to help others do the same.
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One of the most horrifying experiences for me was struggling with money and not being able to pay my bills. The fact is that there are many people and families who are experiencing some very difficult financial situations.
Although there is no magic pill or “one size fits all” method to fixing financial struggles or “financial dis-eases,” based on my experience with financial struggles, here are a few tips to help you get started.
Tip # 1: Assess the Problem
The most important step is to assess why you can’t pay your bills. This could be because of a job loss, a pay cut, increase in fixed expenses, unexpected medical bills, an expensive mistake or poor spending habits. After understanding the cause of the problem, the next phase of this step is to write out your budget. You may see that you are spending more than you make. By writing this down in detail, you will understand your fixed verses flexible expense.
Tip # 2: Fix the Problem
Once you understand what the problem is, you can now begin the process of fixing the problem. Most of the time problem is overspending. If this is your issue, the best cure for this financial dis-ease is financial abstinence by eliminating the use of credit cards or unsecured lines of credit. Also, cut back on eating out and reduce or eliminate flexible bills like cell phone, land line phone, cable or any other unnecessary expenses.
RELATED ARTICLE: Brilliant Budget Tips to Eliminate Credit Card Debt
However, many people aren’t overspending at all. They may not be making enough money and their income does not meet their baseline budget of their fixed expenses. If this is your issue, it is now a matter of increasing your income. Finding a part-time job or establish a home-based business can generates that extra income needed.
RELATED ARTICLE: Make Extra Money With These 4 Side Hustles
Here are few more ways to handle challenging financial situations:
Ask your family or friends for a loan or gift to assist you during your short-term struggle.
Make sure that you only ask them once and make it clear that it is a gift (you do not have to pay it back) or it is a loan (you will pay back). If it is a loan, establish the payment arrangements and make sure you pay them back on time. Don’t be that family member that everyone ignores phone calls from because they know you are just going to ask them for money.
Contact your creditors.
Contact your creditors to explain your temporary financial hardship and request to skip a payment for the month to get back on your feet or to modify your payments, permanently or for a limited time. Many financial institutions have a loan modification program.
Contact a debt management organization, like CCCS.
Contact a debt management organization, like Consumer Credit Counseling Services (CCCS) to assist you with communicating with your creditors to reduce your monthly payments. There are many organization out there, some free and some with a minimal fee. Be sure to do your research before you commit to their services and program, especially if they are requiring a fee up front. It is recommend that you find a non-profit debt management organization that does not charge a fee to assist you.
Learn your legal options.
When all else fails and you have honestly tried everything stated above as well as other tips you’ve learned, another last resort option may be bankruptcy. “Bankruptcy is a tool, nothing more, nothing less” says Bankruptcy Attorney & Trustee Angelyn Wright of The Wright Law Alliance, P.C. When used appropriately it can be the financial major surgery necessary to rebuild your financial well-being and give you a Fresh Start. If you are considering this option, make sure you understand what bankruptcy is and does. When done the wrong way or with the wrong attorney, it may put you in a worse financial situation than you are now. Get educated and ask questions before you proceed with caution.
Based on personal experience, as well as observing and working with others who are dealing with and have resurrected from financial struggles, your financial situation can change if you are willing to work hard enough and can be disciplined.
Have you or someone you know been infected with Financial STDs? I have…
In my book Financial Fornication, I talk about Financial STDs (Substantially Tremendous Debt). This financial dis-ease is not only financially and emotional painful, but families and cosigners can get infected as well because it can be contagious. So, here are 5 ways to avoid Financial STDS.
Use Financial Contraception.
Financial Contraception is better known as a budget or spending plan. Create a budget or spending plan that works with your lifestyle. Using a budget is the best protection against acquiring Financial STDs.
Avoid being financially promiscuous with multiple credit cards.
Pick a credit card that has the lowest rate and provides bonus points if you must or choose to use a credit card for purchases. Using multiple credit cards may result in excessive spending, which result in Financial STDs.
Limit or Avoid Financial One Night Stands.
A financial one night stand is a financial transaction, usually less than $50-$100, that should be paid in cash or paid in full if purchased with credit. If you choose to use credit for these types of transactions, avoid turning those financial one night stands into a long term financial relationship by revolving the balance and not paying it off in full. Just “Hit it & Quit it!”
Become Financial Abstinent.
When your finances feel like they’re getting out of control, sometimes it’s best to just STOP using credit to get a handle on your finances. Being financially abstinent stops the leaks in finances so a budget can be created to build up immunity against Financial STDs.
Get out of Financially Abusive Relationships.
If you are getting your butt kicked with ridiculously high loan rates, low deposit rates, lots of fees and poor customer service, they’re probably really not that into you, which means that it’s time to plan your exit strategy from that financially abusive relationship. You don’t have to stay. Date financial institutions to find the best one for you.
For more healthy financial tips, check out my book “Financial Fornication.”
“A budget tells us what we can’t afford, but it doesn’t keep us from buying it”
Are you drowning in debt and don’t have any idea on how to get credit card debt relief? Well, you’re not the only one who wants to get an effective solution to your problems.
I can speak about at least 4 credit card debt solutions for hours and these are – credit card debt settlement, credit card debt consolidation, credit card debt management and bankruptcy. These solutions will help you get credit card debt relief within a few months. But, these solutions will work best when you use some brilliant budgeting tips every day to pave the path to financial freedom.
Budgeting tips to eradicate credit card debt
Budgeting is a must when you’re drowned in credit card debt. It helps you to have an idea about your financial health. It shows you the areas where you can cut costs. Remember, if you don’t change your spending habits, then beware! You would be in a bigger financial trouble. Here are the 3 budgeting tips you can follow to pay down credit card debts in 2016.
1. Calculate how much you owe and track your expenses
Use a credit card debt payoff calculator to find out how much you have to pay every month and for how long to attain financial freedom. Once you get the figure, your next task would be to track your monthly income and expenses. This would take some time. Calculate your total monthly income and the maximum amount you have to pay on bills such as electric, telephone, rent, etc. Now, subtract your expenses from your income to get the amount you can pay on your credit card debts.
If your expenses are more than your income, then you’re in trouble. It would be tough for you to pay off your credit card debt soon.
2. Cut down your expenses to pay off credit card faster
Only money can help to solve your current problem. So, you need to cut down your expenses so as to have more money on your hand. I’m not telling you to stop eating and save money. But, at least, you can reduce your expenses on entertainment, traveling, clothes, accessories, etc. Create a list of your expenses on your personal computer. Find out the ones on which you can trim your expenditures. Calculate how much you would save every month by eliminating these expenses. You can use the money for paying off credit card debt faster.
3. Use your savings to make extra payments
The more you save, the faster you would get out of credit card debt. Use your savings to make minimum payments on all your credit cards. But make sure you pay a little extra on the credit card with the smallest balance. Keep on doing this every month till this credit card with the smallest balance is paid off completely. After that, focus on the next smallest debt. Make extra payments on this card till it is paid off. Save ruthlessly so that you can pay off all your credit cards one by one in 2016.
If you have opted for credit card debt settlement, then use your savings to settle your credit cards as soon as possible. Deposit your savings in the trust account opened by the debt settlement company. Your aim would be to save enough money in the trust account so that the settlement company can start the negotiation process as soon as possible.
Conclusion
You have to pay off your debt. This is your ultimate goal in 2016. But at the same time build your emergency fund. This would help you meet unexpected expenditures in the future. You won’t get into fresh credit card debts in the future. You would not rely on credit cards to pay for the emergency expenses such as hospital bills and holiday gifts that may pop up anytime. You can use the emergency fund to have wonderful vacations with your family.
Just make sure you save minimum 10 percent of your income every month. I know it’s little hard to do when you’re in debt. But, give your best shot. Best of luck guys!
Originally published March 30, 2016
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