Insurance, Loans, and Mortgages: Our Life in Debt

Swagbucks is NOT a Scam!!!

2014-04-18T06:55:00.000-07:00

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Social Security suspends its ridiculous debt collection efforts

2014-04-17T11:40:00.003-07:00

The Social Security Administration announced Monday that it will immediately cease efforts to collect on taxpayers’ debts to the government that are more than 10 years old.

The action comes after The Washington Post reported that the government was seizing state and federal tax refunds that were on their way to about 400,000 Americans who had relatives who owed money to the Social Security agency. In many cases, the people whose refunds were intercepted had never heard of any debt, and the debts dated as far back as the middle of the past century.

“I have directed an immediate halt to further referrals under the Treasury Offset Program to recover debts owed to the agency that are 10 years old and older pending a thorough review of our responsibility and discretion under the current law,” the acting Social Security commissioner, Carolyn Colvin, said in a statement.

Apps to Make Money and help get you out of Debt!

2014-04-15T12:50:00.001-07:00

Death, DEBT and Taxes!

2014-04-15T08:24:00.001-07:00

In normal circumstances, tax law requires that debtors pay income tax on any amount of debt that is forgiven. When the housing market crashed, that tax treatment became untenable, because borrowers were getting huge tax bills on debt that presumably had been wiped away in foreclosures, short sales or loan modifications that reduced the loan’s principal balance.

Personal Debt Is Brutal!

2014-04-14T18:59:00.001-07:00

If the past brutal winter left you with a shortfall in your budget, you might have to cut back on a few things and double up on making payments or refilling your savings/emergency account. I’m not saying it needs to be a Ramen Noodles night every night, but you will surely need to make some cutbacks in order to take control of your finances again.

Debt Consolidation Traps to Avoid

2014-04-11T07:59:00.000-07:00

Debt consolidation loans are like a politician during an election year—they make a lot of promises, but don’t always deliver. They promise lower monthly payments, lower interest rates and the convenience of a single payment. For many, however, the reality is high fees, greater debt and potentially more interest payments.

Here are four signs that a debt consolidation loan may drown your finances from Rob Berger :

If you use debt consolidation as a cure-all. If the ultimate goal is to climb out of debt, consolidation loans don’t have a good track record. Estimates suggest that at least 70 percent of those who consolidate their debt end up with as much or more debt a few years later. For example, one might consolidate credit card debt into a single loan, only to max out the credit cards with the newly found available credit. Think of it as yo-yo dieting, only with debt.

Why does this happen? Because getting a debt consolidation loan to make your payments more manageable doesn’t require you to change your behavior. It’s similar to losing weight with a dieting pill; if you don’t also adjust your eating habits, you’ll probably pack the pounds back on once you quit using the pill.

This isn’t to say consolidation loans are bad. They can be useful tools for managing and paying off. However, they’ll only work over the long term if you can be financially disciplined enough to change your lifestyle so that you don’t go into debt again.

If you rely on an expensive consolidation service. Consolidation loan services, in truth, don’t do much that you can’t do yourself. And they’ll often require hefty fees for their services: either in interest, in up-front fees or in monthly fees when you run your payments through them. Sometimes, such services are a good idea, but not if they’re going to cost you more money in the long run.

You’re probably better off looking into debt consolidation options on your own. You could move your high-interest credit card debts to a no- or low-interest option, take out a home equity loan or possibly get an unsecured line of credit.

As with most things in life, when you take out the middleman, the costs go down. If you are considering using a debt consolidation company, try to work out your debt problem in other ways before opting for a potentially expensive loan.

If you wind up paying more interest over time. This is one hidden problem with debt consolidation loans. While you may lower your monthly payments, those payments often come at a cost—more interest payments. The lower monthly payment may be the result of extending your payments out over more years; it’s like getting a 7-year car loan rather than a 3-year loan. You’ll pay less each month, but your total interest payments will be a lot higher. That’s true even if your consolidation loan lowers your interest rate.

If you have high credit card or other debt payments, you may be more motivated to pay them down one by one—a plan that will leave you with huge interest savings over time. If, on the other hand, you consolidate your loans so that your monthly payment is less worrisome, you may just make minimum payments. Again, this leaves you paying a great deal of more interest over the life of the loan.

You can use an online calculator to determine how much loan consolidation will cost or save you in interest and decide whether this is the right debt payoff strategy for you.

If you put your house on the line. Here’s where debt consolidation can cause serious problems. Consolidating your debt onto a home equity loan or line of credit—while a reasonable approach in some cases—puts your home at risk.

If you use a home equity loan, line of credit or cash-out refinance to consolidate your debts, recognize you are guaranteeing the loan with the pink slip to your home. It may seem like a good idea—especially with today’s incredibly low interest rates, but you’re going from unsecured debt to debt that’s secured by your most important asset: your home.

If you’re considering leveraging your home’s equity to consolidate credit card debt at a lower interest rate, make sure you can make this extra payment. Also, make sure you still have at least 20 percent equity in your home by the time you take out your line of credit or second mortgage. If you default on the loan, you’re at risk of foreclosure—just like if you defaulted on your original mortgage.

Take these factors into consideration before deciding whether one of these debt consolidation loans is right for you.

Our Life in Debt

2014-04-09T08:25:00.000-07:00

This is a blog about being in debt. It's also about, dealing with debt as family and as a person. I hope my candid feelings and useful information can be helpful to other with the same problems and challenges.

Debt Sucks!

Anxiety about your debt is a KILLER!

2014-04-08T08:14:00.002-07:00

And... it's killing me!

How to eliminate anxiety around you personal debt

2014-04-08T08:12:00.002-07:00

Tips for coping with debt stress and anxiety

2014-04-08T08:09:00.005-07:00

Along with the financial worries, struggling with debt often leads to depression, anxiety and stress and can cause tension or arguments between you and your loved ones.

Here, we look at how to deal with stress and the emotional and mental troubles that come with being in debt.

1. Accept that your debt is a problem

Before you can tackle your debt and the associated worry and stress, you need to accept that it’s a problem. For many people, debt is something that creeps up on them, building slowly over time.

Your debt may have grown from being small and manageable into something that now feels like it’s totally out of your control, but now you need to accept that your debt is a problem.

2. Talk about your debt

Once you have accepted that your debt is a problem, it’s important that you talk to someone about your worries. By talking about your problem you share the burden of worry and help to reduce feelings of stress. Be open with your partner about your debt, it affects them too – both financially and emotionally.

If you feel comfortable, talk to trusted friends or family about your debt, but don’t worry if you feel like you can’t – it can be a difficult subject to bring up. The most important thing is to ensure you get professional debt advice from a debt counsellor who will hear you out and help you to deal with your situation.

3. Take action and deal with your debt

The sooner you start dealing with your debt, the sooner the problem will be resolved. Your first steps should be:

Get in touch with a debt organisation like the Citizen’s Advice Bureau or StepChange for free impartial advice.
Stop ignoring bills and start speaking to your creditors.

4. Restore your confidence

Taking action also has the benefit of giving you a feeling of achievement, and you’ll soon start to see that your debt is a problem that you can overcome.

So if you’re feeling as though your debt is a huge problem, or something you can’t deal with, remember that taking small steps will help to restore your confidence.

5. Get help coping with your debt

There are many different routes out of debt, and a few charities that can help you decide which option is best for you. We recommend the following organisations:

National Debtline
StepChange Debt Charity – formerly the Consumer Credit Counselling Service
Citizens Advice Bureau

You can also look at our debt directory for more sources of help.

6. Address the stress your debt causes

If you’ve been suffering with growing debts, you may also have felt some degree of stress, anxiety or even depression. The worries associated with being in debt are very natural and very common.

There are simple steps you can take to help you relax. It’s also important to remember that your debt is a problem that you will overcome, and that if you take action now, in a few years’ time your debt will seem like a distant memory.

So while you deal with your debt, remember to:

Eat well. A healthy, balanced diet will help your mind and body function.
Exercise. Run around the park, hop on a bike – exercise doesn’t have to be expensive.
Sleep. A good diet and regular exercise will help you sleep.
Keep it all in perspective. Your debt is a problem that you are dealing with.

7. Tackle the psychological aspects of debt

Your debt may be linked to your emotional or psychological needs. For many people, spending money is a way to boost their mood, to reward themselves or to make up for disappointments.

For others, debt and depression become very connected, with debt fuelling depression which in turn fuels a desire to spend. For some, shopping is an addiction, which can be as difficult to stop as drinking alcohol or taking drugs.

If you know that your spending habits are affected by your emotional or psychological state, you may want to seek counselling. Speak to your GP, who may refer you to a counsellor.

8. Find your path away from debt

Debt is a problem that you can solve. By taking the first steps towards tackling your debt, you will begin to feel less stressed and more in control.

As your debt becomes manageable, remember to take care of yourself by eating well and exercising regularly. It may also be necessary to address the emotional or psychological scars of debt – but help is available.

I hate my life

2014-04-07T10:47:00.003-07:00

Why am I still in debt?!?!

Penny Stocks, A way out of Debt... PennyStock Egghead...Really?!?!?!

2014-04-04T09:15:00.001-07:00

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Be honest with your family: Avoid a Debt Disaster

2014-04-04T08:57:00.003-07:00

Be honest with your family. Some Extra-curricular activities (music lessons, summer camp) might have to be cut in order to sacrifice for the good of the family. Encourage the kids to get part-time jobs, and if they are over age 18, they should pay rent (if they work irregularly, ask for 15-20% of a paycheck, rather than a fixed monthly price).

How overspending with credit cards built debt and how I found a way out

2014-04-03T11:52:00.001-07:00

1. Take stock. Before you start reducing your credit card debt, know where you stand, says Cate Williams, vice president of financial literacy for Money Management International, a large, national credit counseling firm. "A lot of people will say they've got a certain amount of debt -- $9,000, let's say -- when in reality, it's $11,000 or $14,000." You'll never hit your target if you don't know where it is, so be brutally honest with yourself.
Action plan: Write down the debt -- and the interest rate -- on every card you have.

2. Improve your rates. The quickest way to save big on your credit card bills is to negotiate a lower interest rate. If you can shave off even a percentage point or two, you can save hundreds as you pay off your debt. A simple phone call and a polite request may be all it takes. While your credit score will play a large role in whether or not you get a rate cut, it's not the only factor. "Every lender has their own approach to this issue," says Weston. "It never hurts to give it a shot."
Action plan: Call up each credit card company and request lower interest rates.

3. Track your costs. Write down all your regular, committed expenses (mortgage, utilities, insurance, car payments, minimum credit card payments, phone, gym, cable, etc.), and track other variable expenses such as restaurant meals, entertainment and travel. This will serve as the foundation to your budget.
Action plan: Study up to a year's worth of credit card bills and bank statements to get an accurate sense of your monthly spending, and keep tracking your expenses with a notebook or financial software.

Debt Consolidation

2014-04-02T10:13:00.003-07:00

Debt consolidation involves taking out one loan to pay off many others, i.e. combining multiple loans into a single loan. It is often done to secure a lower interest rate, secure a fixed interest rate, or for the convenience of servicing only one loan

Getting Rid of Debt - Pay off your debts quicker

2014-03-28T07:33:00.001-07:00

U.S. to Pay Down $35 Billion in National Debt in Q2

2014-03-27T08:35:00.001-07:00

The U.S. government expects to pay down debt in the current quarter for the first time in six years, the Treasury Department said on Monday, citing stronger-than-expected revenues.

It said it would pay down $35 billion in net marketable debt in the April-June quarter, and would likely end the quarter with a cash balance of $75 billion. In February, it estimated that it would need to borrow $103 billion, even as it projected a smaller end-of-quarter cash balance.

It is the first retirement of government debt since a $145 billion paydown in the April-June 2007 quarter.

How many different types of debt are there?

2014-03-26T07:16:00.001-07:00

Here are several different types of debt. They are:

Installment Debt - Installment debt is money owed to a creditor who expects repayment over a fixed period of time made in equal monthly amounts. A mortgage or a car loan is an example of installment debt. You are making the same payment over a fixed schedule of time. An auto loan, for example, might call for 48 equal payments of $300. A home loan might call for the same payment of $1000 every month for 30 years. You are paying these loans off in installments.

On your credit report it is easy to tell if an account is being reported as an installment account. The numeric Current Status rating will be prefaced by an "I." The "I" stands for installment.

Revolving Debt - Revolving debt is money owed to a creditor who sets your monthly payment based on the current balance. Credit cards or retail store cards are examples of revolving credit. Each month your balance varies based on your shopping activity from the previous month and any unpaid amount rolled over or "revolved."

As with installment debt, revolving debt is easily identified on your credit report. An "R" prefaces the numeric Current Status rating. The "R" stands for revolving.

Open Debt - Open debt is the least common type of debt to be found on your credit report. "Open" means that each month you run up a balance and pay it in full when you get your bill. Your cell phone is a good example of open debt. The American Express Green Card is another example of open debt. You don't have a predefined credit limit and you have to pay the balance in full each month.

Someone help me Get our of debt

2014-03-21T07:57:00.001-07:00

i'm doomed

2014 Personal Debt Goals

2014-03-20T08:16:00.004-07:00

I’ve never been one for New Year’s Resolutions. I actually do not care for them much because I’ve tried to make them in the past and I just break them. I’d rather start something when I’m mentally ready and just not on a certain date.

But, I’ve never tried setting yearly financial goals. Seeing that I’m already ready to pay off more debt, I guess it can’t hurt to give myself a few goals for the year.

Here we go…

Debt Goal – I would like to pay off at least $12,000 more of our debt in 2007. To account for monthly finance charges, we’ll probably have to pay around $1,100/month to make it happen.

Savings Goal – Since I only have about $121 in a savings account, it might be nice to put a few more dollars in that account. If I can double the balance in 2007 I’d be happy. It’s a start

Retirement Goal – I will have the ability to contribute to a 401K plan this year. I am excited and I really have no idea what to expect with this. I’m waiting to get paperwork so I can read up on it. I’m on the fence right now with how much to contribute because of our debt.

Extra Money Goal – I haven’t forgotten about eBay. I still want to sell a lot of our stuff on there to make some cash to go towards our debt reduction. I also want to reduce clutter in our house

Personal Goal – I’m not going to set a specific poundage to this one, but I would like to lose some weight this year. I just want to have more energy and be able to do more things. Let's RUN!!!

When will I be debt-free?

2014-03-18T12:31:00.004-07:00

Here link to great Debt Calculator:

Good Luck!

http://money.cnn.com/calculator/pf/debt-free/

Here's their Methodology:

How we calculate the number of months it will take to pay off your debt

For each month, we calculate and add the interest accrued during that month to the amount you owed during the previous month. Then we subtract your monthly payment to arrive at the new amount owed. We repeat the process and track the number of months needed for the amount owed to reach $0. If you have multiple debt types, your debt-free date is based on the debt that will take the longest time to pay off.

A debt story

2014-03-17T13:10:00.002-07:00

We have 5 kids with a stay at home mom. We own only 1 car, a Toyota Sienna. The money you are putting into the monthly lease can be saved and used to pay down debt. I drop my husband off at work and pick him up. Sometimes, he will bum a ride off his colleagues. When it comes to a large family, food costs can get out of control. I use a system of writing down every single penny I spend. I also track my husband's spending. I avoid impulsive food buys and plan out the meals for the week and shop at 99cent discount store, and costco. We only eat out for special occasions, maybe once or twice a month. Avoid fast foods also. Don't give up. Once you make debt repayment a priority, you will quickly free up extra money every month that can go towards savings and investment.

A way to get out of debt today!?!?!?!

2014-03-14T07:38:00.001-07:00

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Student Debt at SXSW

2014-03-14T07:31:00.000-07:00

Student debt can be a crippling burden to carry after graduation

Lesser known, however, is the private sectors emergence in this exchange of service for student debt relief.

Young Americans from coast to coast will be flocking to Austin, TX this week for the South by Southwest festival (SXSW) that highlights innovative ideas and content in festival form along with music and film components. Once such innovative leader being recognized for its service is SponsorChange.org.

SponsorChange is a small non-profit that helps graduates battle student loan debt with volunteering.

Graduates with student debt sign up to volunteer at organizations that need manpower.

With the Millennial generation volunteering more and giving to charities in record numbers, organizations like SponsorChange may have found creative alternatives to fill the gap between doing good and paying off student debt.

Debt is a total killer

2014-03-13T10:00:00.000-07:00

Does anyone have any advice or comments they would like to share on this blog. I could sure use a "pick me up" today! Speak up!