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Free Debt Management Tips: Six Bills You Could Easily Get Cut

March 27, 2017 debtmanagement

If you think your bills are fixed and can’t be cut, you have another think coming. According to the bill negotiating service, BillShark, we consumers could save as much as $50 billion a year just by haggling over certain bills. Cell phones are where you can currently get the best deals, as the cell phone companies are currently engaged in a price war. The founder of BuildFixers, Ben Kurland, has noted that if your cell plan is more than six months old, this might not be the most efficient plan for you.
If you think your bill fixed and can’t because you have another think coming according to the building associating service bills we consumers could save as much as 50 billion a year just by handling over certain bills cell phone bills are where the biggest savings can currently be found as a cell phone companies are engaged in a price war. Billfixers founder, Ben Kurland, has noted that if your cell phone plan is more than six months old, it may not be your most efficient plan.

Six other bills you could get cut in without working out much of a sweat are:

Pay television

Of course, when we say pay television, we basically mean cable TV. If you have more than one cable company in your area, you can probably get a better deal simply by changing providers. We have two cable TV companies where we live, and they are currently slugging it out to attract new customers. If you have only one cable TV provider where you live, consider cutting the cable entirely. You should be able to get all your local channels with an indoor HDTV antenna. Then, there’s Netflix, Hulu, and Amazon Prime for catching up on old programs and for movies.

Alarm systems

If you have an alarm system in your home, it’s almost certain you can cut your bill. If you have a long-term contract, try haggling with your provider. If you can’t get a better deal, Vivant Home Alarm is currently offering free installation and says it charges less than two dollars a day. You could do even better with SimpliSafe. It uses a fast cellular connection, so you can monitor your home 24 hours a day no matter where you are. SimpliSafe also includes 24/7 professional monitoring and police dispatch, and costs just $14.99 a month – with no contract.

Storage units

If you have a lot of stuff in a storage unit, you may not want to consider moving it to a new unit just to save money. But if you haven’t yet rented a unit, there’s a website, SelfStorage.com, where you can find the best storage units close to you at the best prices. The site allows you to view and compare storage options nearest to you, and without the hassle of calling around for prices. When you find one, you can then book the unit free in just a few minutes – either online or on the phone.

Gym membership

Want to get in shape on the cheap? Joining a gym can get expensive. In fact, one source says belonging to a gym costs an average of $58 a month. You can beat this by using free passes. Some health clubs offer free one-day passes, while others have week-long passes, or even two week passes. If you work for a large employer, it probably offers some kind of workplace wellness program, which would be like a gym membership except for free. And some cities have discount gyms that cost as little as $10 a month.

Satellite radio

Since there’s only one satellite radio provider, SiriusXM, you can’t comparison shop. However, you can save money with SiriusXM. It doesn’t talk about this much but it actually offers three pricing tiers. The first is titled Mostly Music, and offers 80 channels of great music. It’s priced at just $10.95 a month. While this tier does not include online streaming, you could add it for just $4 a month. The next tier is called the Select Package, which costs $14.99 a month and includes more than 150 channels of sports, music, and comedy – though you cannot add Internet streaming to this plan. Finally, there is the top tier, All Access that provides all of the 160+ channels, as well as online streaming from your tablet, phone or computer.

The Internet

You may be able to get a better deal from your current Internet provider just by threatening to switch to a different company. It’s also possible to save money by reducing your usage. Think about how you use the Internet. If it’s just for general web surfing, email and social media, you only need a speed of 1 Mbps (megabyte per second). But if you’re an online gamer, you’ll need 1-3 Mbps, and if you’re into high-definition video streaming (think HDTV movies), you’ll need 5-8 Mbps.

In summary

Write a list of all your bills. Then, ask yourself how many you might be able to cut. We’re willing to bet you’ll find more than just the six mentioned here. The fact is, it only takes a little time and effort to get a lost of your bills reduced.

11 Incredibly Simple Things You Could do to Get Out of Debt

February 13, 2017 debtmanagement

How would it feel to be debt-free? We’re guessing you’d feel pretty darn good. There’d be no more the stress of dealing with creditors, no more trying to remember which payments to make on what day of the month, and most important, your entire paycheck would be yours – no more sharing it with your creditors.

If you’ve been trying to pay off your debts, you may have already done the big stuff like selling your house and downsizing, or getting rid of that travel trailer. But have you forgotten some of the small, simple things you could do to become debt free? Or maybe you’re stuck. You have a few ideas but just can’t get those creative juices flowing.

Well, take heart. Here are 11 almost ridiculously simple things you could do to get out of debt.

1. Begin couponing

If you have a favorite supermarket, be sure to sign up for its emails. You’ll then get a steady stream of money-saving coupons, some of which will actually be for stuff you buy on a regular basis. There are also sites like coupons.com, dailycoupon.com, retailmenot.com, zulily.com, and shopathome.com, where you can download printable coupons. Then, build your meals around them.

2. Cut that cable

If it feels like your cable bill just gets bigger every year, that’s not your imagination. America’s cable companies just keep increasing their fees. Technology has gotten to the point where there’s just no reason to subscribe to cable anymore. You could get an antenna for less than $50 that will get you all your local stations – free. Add a couple of subscriptions like Netflix, and Amazon Prime Video, and you should be able to should get all the programming your heart desires and for less than $25 a month.

3. Quit eating out

How often does your family eat out? Let us say you eat out just twice a week, and that you spend $40 on a meal. That’s $320 a month. Eat in those two days you’ve been eating out and that’s $320 a month you could use towards debt reduction.

4. Learn to love the word “no”

When it comes to saving money there’s just no word more powerful than the word “no” when it comes to your money. It’s one you need to learn to love. Make it a critical part of your vocabulary. Embrace it. It’s a word you’ll be saying very often when it comes to your spending. No matter how much you want that new blouse or that new billfold, just say “no.” Ditto 23that new fishing rod or smart phone.

5. Avoid expensive hobbies

Do you have an expensive hobby like golf? That can easily cost you $200 a month. Do you collect expensive football or baseball cards or antique greeting cards? Then, stop playing golf, or sell all those cards. Use the money to either pay down debt or to help fund your kids’ college education.

6. Sell a car

Is yours a two-car family? Maybe it doesn’t really need to be. If the payment on one of those cars is the US average of $400 a month, then sell it and bank the $400, which is really $4600 a year. We’re pretty sure that putting $400 a month towards paying off your debts would get you debt free a lot faster.

7. Freeze your credit cards

Yes, we really mean it. Freeze all your credit cards in a block of ice except for maybe one with a low limit and keep it available for an emergency. Some experts say you should shred your cards, but we prefer the block of ice method as your cards would still be there to use when you get debt-free.

8. Sell stuff

If your family is typical you have a bunch of stuff sitting in your garage, attic, or basement that’s just gathering dust. Put it on eBay or Craigslist and sell it. You might be surprised at how much you get for stuff you think of as just one step above junk. Or, even better, if you have a skill for making things, put it to use by making stuff and selling it online.

9. Merge your bank accounts

If you’re married, do you and your spouse have separate bank accounts? Merge them. There’s no reason the two of you shouldn’t be able to share one account. You’ll save money, and it will simplify your household accounting.

10. Use your local library

Do you remember libraries? They’re places where you can get books free, which is a lot cheaper than buying from Amazon.com. If your library system is like ours, you might even be able to check out, and download e-books, and then read them on your tablet.

11. Don’t invest

We understand this is a shocking one. But once you become debt free, don’t invest your new-found money in the market. Start putting 15% of your gross income into a retirement plan, instead. That could be a 401(k) if your employer offers one, or if not, a traditional or Roth IRA. Then, invest that money in something safe and sound like an index fund.

5 Financial Mistakes to Avoid Like the Zika Virus

December 12, 2016 debtmanagement

If you’re typical you probably never had a class in personal finance either in high school or college. If you were lucky one of your parents sat you down and at least discussed the importance of budgeting your finances.

You could be merrily cruising along thinking you’re doing okay with your finances when you’re actually making some serious mistakes. You may not be guilty of all five of these mistakes but it’s likely that there are several areas where you can improve.

Failing to have a spending plan

There’s a great quote, “A goal without a plan is just a wish”.

You can have some really great goals but if you don’t have a spending plan they’re just wishes.

Is yours is a two-week vacation in one of our national parks or at the beach? Or maybe it’s to buy a house. If you don’t have a spending plan it’s impossible to prioritize the decisions, you must make financially or to be aware of where your money is going. In fact, if you don’t have a personal spending plan you may never achieve any of your goals.

There are a number of apps available designed to take the work out of creating a spending plan. Some of the most popular of these are You Need A Budget, Mint PocketGuard, GoodBudget and Mvelopes.

Sit down, check out several of these, choose one and get started. You’ll find that developing a spending plan is much easier than you might have ever imagined. And a spending plan is the only way to make sure that you’ll achieve your important goals.

Living from paycheck to paycheck

Are you able to save anything or are you just living from paycheck to paycheck?

According to the Federal Reserve 45% of all Americans don’t have enough money saved to cover a $400 emergency. And 63% of us don’t have enough in savings to cover a $500 emergency.

When you create your spending plan you need to budget so that 10% of your net earnings for an emergency fund. Ideally you should build a fund equivalent to at least three months of your living expenses. Don’t despair if you can’t put 10% of your earnings into an emergency fund right away. Start with whatever you can – even if it’s only $20 a pay period. Then try to increase that amount as you can.

Not matching your employer’s 401(k) contribution

Would you like some free money? We certainly don’t know anyone that would turn up their noses at this.

That’s what your employer’s contribution to your 401(k) is – free money.

US News.com has reported that an estimated $24 billion in unclaimed 401(k) matching funds go unused every year.

If your employer does offer to match your 401(k) contributions then for heaven sakes, take advantage of this and contribute at least up to the percentage of your salary your employer will match.

If you can’t afford to do the full match, contribute as much as you can. Choose a safe investment such as an index fund and let the power of compounding go to work to help you towards a good retirement.

Never reviewing your credit reports

Have you seen your credit reports recently? Or have you ever seen them?

It’s important to get and review your credit reports on a regular basis because they could include errors that are damaging your credit score.

A study by the Federal Trade Commission released in 2014 revealed that as many as 42 million of us have errors in our credit reports that could be causing us to pay higher interest rates or keeping us from getting loans.

It’s really important to review your credit reports from the three credit bureaus (TransUnion, Experian, Equifax) to make sure they do not include errors.

The most common ones to look for are identity errors, incorrect account details and fraudulent accounts.

If you find errors in any of your credit reports make sure to dispute them. All three of the credit bureaus have forms on their websites specifically for this purpose but the experts say you really need to write a letter to the appropriate bureau enclosing whatever documentation you have to prove your case.

Failing to understand the difference between good and bad debt

There are experts that preach all debt is bad debt.

However, most experts in personal finance now recognize the fact that there is such a thing as good debt. It’s defined as debt used to purchase items that will grow in value over the years. For example, a mortgage can be considered good debt because the value of the home will increase over the years. Paying for a college education can also be considered good debt because it should help you increase your earnings going forward.

On the other hand, bad debt is money you borrow to pay for stuff that you consume or use up quickly such as that aforementioned two-week vacation, clothing or electronic games.

Of course, the truth is that all debt is essentially bad debt. The biggest difference between good debt and bad debt is that bad debt can damage your finances a lot quicker.

The smartest thing to do is to avoid debt like the plague because the faster you can become debt free, the better.

Debt Management Tip – Use That Raise to Pay Down Debt

October 6, 2016 debtmanagement

There are few feelings in life any better than the feeling you get when you’ve just been told you’re getting a nice raise. It not only means more money but it’s also about self-worth – your company just confirmed the fact that you’re a valuable employee. We can still remember how we felt the day we got our biggest raise ever. We literally wanted to dance down the hall, shouting “Hallelujah!”

If you’re not careful

The mistake many people make when receiving a raise is that they immediately adjust their spending to their new salaries. This has been called lifestyle creep. For example, if you’ve been driving an eight–year-old SUV you might be tempted to use your raise to move up to a newer model. Or you might decide to boost your spending in several categories like clothing, recreation and entertainment. What this amounts to is if you’re not careful the money you received as a result of your raise can basically evaporate in just a few months and you could end wondering where it went.

A better alternative

A better alternative than just allowing lifestyle creep is to sit down and think about your goals. What’s really important to you? Is it travel, camping, good food and exercise or your kids? Make a list of these specific items and then budget for them using your new money. That way instead of the money just disappearing into your everyday living expenses you’ll be using it to achieve both your personal and financial goals.

Know your Achilles’ heel

Many people, and especially young people, break their budgets on going out. If your number one vice or Achilles’ heel is hot new restaurants, bars, clubbing or concerts there are a few things you could do to make sure you don’t increase your entertainment spending, which would eat up that raise. For example, if your biggest vice is eating out, you could invite your friends over for a DIY cooking night or potluck supper. Do you just love festivals and concerts? Instead of buying tickets for them why not organize a bike ride? The net/net is that you will need to be clear about your spending goals and find ways to encourage your friends to accommodate them.

Pay down debt

There is just no better way to get a return on your money than paying down debt as your return will be equal to the interest rate you’re paying, which could be 15% or even higher. If you’re carrying credit card debt use that salary increase to pay it off. Start by focusing on paying off the card with the highest interest rate while making at least the minimum payments on your other credit card debts. Then, when you have that highest-interest credit card debt paid off there are few things in life there are a few things any better. When you just been told you’re getting a three only means more money but it’s also about self-worth just move on to the one with the next highest rate and so on.

Increase the contributions to your retirement plan

Whenever you get a salary bump there’s the opportunity to save more money for retirement. In fact, that should be one of the first things you focus on. Your ultimate goal should be to save 15% of what you earn for retirement. If you’re not at that level yet, don’t panic. Just increase your retirement savings by as much as your new salary will allow. The key here is to automate your savings so that the money is automatically subtracted from your paycheck and deposited into to your company’s 401(k) or your IRA. Do this and pretty soon you won’t even miss the money.

Get the most emotional bang out of your raise

If you have no interest in saddling yourself with a new car payment, a new house or apartment then don’t. Determine your most important goal and then use the new money to achieve it – whether it’s spending a month in Thailand or hiking the Appalachian Trail. When you budget for things that don’t match your goals or that don’t bring you joy, you could end up cheating on your budget and feeling bad about yourself. The trick here is to understand what drives you as a person and then use that raise to achieve it.

Create an emergency fund

There are financial experts that say you should have an emergency fund the equivalent of six months’ living expenses. However, that can be a very tall order. If you calculate your living expenses to be $2000 a month you’d need to have a $12,000 emergency fund. Instead of trying for this, which could be mission impossible, try to create an emergency fund of at least $2000. While that won’t be the six month’s cushion you should work for over time, a couple of thousand dollars would help you avoid we can still remember how we felt the day we got our biggest reason ever really wanted to dance down the hall shouting Hill Lilia mistake many people make when receiving erases it they merely adjust their spending to their new salary was have been called lifestyle creep example if you’ve been driving me your list will be you might be tempted to use your race to up to this amounts to is if you’re not careful a bunch of smaller financial disasters like your car breaking down or a medical emergency.

This Week’s Free Money Management Tips

May 12, 2015 debtmanagement

There is no doubt but that good debt management begins with good money management. Whether your goal is to pay off debt or to just do a better job of managing it you need to begin by effectively managing your money. Here are nine tips designed to help you do just that.

#1. Make a budget

If you’re not now using a budget you need to make one. Add up your monthly expenses and subtract them from your monthly income. We hope that you’ll find you have money left over to either save or use in paying off your debt.

#2. If your employer offers a 401(k) plan run, do not walk, to sign up for it

This is especially true if your employer provides matching funds – which is basically free money. Even if you’re only able to save a little bit out of each paycheck this will ultimately add up to big money over the long term.

#3. Start an emergency fund

Once you’ve determined that you can cover all of your expenses start an emergency fund. This is something you absolutely need to do before you begin investing.

#4. Concentrate on paying off your debt

The faster you get your debt paid off the quicker you’ll have extra income you can dedicate to saving or investing. We understand that it’s difficult to save when all your extra income is going towards paying on your debts. If you have debt with high interest rates, such as credit card debt, focus on that first.

#5. Prioritize your debt

The interest you pay on certain debts such as student loans and mortgages is deductible. When you can deduct the interest on a loan it’s actually costing you less. Be sure to factor this in when prioritizing how you will pay down your debts.

#6. Snowball them

Here’s what to do if you’re really serious about paying off your debts. Make a list of them with the names of your lenders, the due dates, balances and interest rates. You can do this with a piece of paper and a pencil or with a spreadsheet. It’s probably best to use a spreadsheet because your next step will be to order them with the debt that has the lowest balance at the top down to the one with the highest. Next, focus all of your energies on paying off the debt with the lowest balance while continuing to make at least the minimum payments on your other debts This should go fairly quickly. Once you have it paid off you’ll have extra money you can use to pay off the debt with the second lowest balance and so on. People owing as much as $20,000 have been able to use this method to become debt-free in just two years. It was developed by the financial guru Dave Ramsey who named it the snowball method because when you roll a snowball it gets larger easier than if you just try to pack snow together.

#7. Tackle those student loans

One really good way to manage student loan debt is by refinancing all of your loans into one with a lower rate. If all of your loans are federal loans you should be able to easily consolidate them into a Federal Direct Consolidation Loan. This will simplify things because you’ll be left with just one payment to make a month, which should be less than the total of the payments you are now making. Use all of your extra money to pay off those student loans instead of doing what many of your peers do right out of school and that’s buying a house or a car.

#8. Learn to love cash

When you pay cash for things instead of using a credit card it eliminates a lot of impulse buying. That’s because it’s just somehow more difficult to pull the money out of your wallet to buy that new tablet than swiping a credit card. If you have a budget you will know how much spending money you have available each month. Go to your bank or ATM every two weeks and take out half that amount. Use it to pay for all your variable expenses such as dining out, take home, movies,, lunches and so forth. You will need to be careful how you use that cash because once it’s gone, it’s gone. This will help you learn discipline in money management as well as cutting down on any impulse spending.

#9. Become a coupon collector

There are coupons available that can help you save money on just about everything. This is especially true of groceries. If your favorite supermarket has a loyalty program, get the card so that you’ll not only get deals automatically but also receive an email of thestore’s weekly specials. There are also numerous coupon-dedicated sites such as www.thecrazycouponlady.com, www.coupons.com and www.smartsource.com. In many cases you will be able to print out the coupons directly from the site or download them to your smart phone. There’s even a browser extension called Get Honey that will automatically apply coupon codes at checkout when you buy stuff online.