Open your wallet. How many credit cards do you have in there right now? Think about the limits each of those cards have. Is it $500? $1,000? $5,000? Now think about your bank account. Is the balance in your account anywhere near the limits on your credit cards? If you're anything like me, my checking account has nowhere near the amount of all my credit card limits. I'm sure you have the best of intentions with those cards. You signed up to get the bonus reward points, to have a back up in case of emergencies. But how often do you really swipe that card? You know your weakness. Is it the shoe department? The newest makeup palette from your Instagram obsession? The reality is, it's so much easier to swipe (or type) a credit card than it is to use your hard-earned money from your bank account. With a credit card, you can buy now and worry about it later. Even if you have the money sitting in your bank account, it's still easier to use a credit card instead. ... View Post
How to Get Back on Track with Paying Off Debt
You've been here before. You were rocking and rolling on paying off debt, when all of a sudden...your old spending habits snuck back in. Maybe you set a budget, only to blow it a week later. You had money in the account, so you could spend it anyway. It was just this one time, right? Except it wasn't. One poor spending decision snowballed into two and then three and so on. Before you knew it, you were hundreds of dollars off budget and nowhere near your goal for paying off debt this month. How did this happen? Does any of this sound familiar? I know I've found myself in this situation more times than I can count. Related post: How to Create Your Own Debt Payoff Plan: 5 Steps to Get Out of Debt Related post: The Very Best Way to Pay Off Debt Related post: How We Paid Off $3,700 of Debt in One Month It's time to get back on your debt payoff track. But how do you pick yourself up when you've fallen so far down? The answer may be simpler than you ... View Post
Is Life Without Debt Really Possible?
You've decided to get out of debt. To get rid of those credit cards, high interest rates, and monthly payments sounds great! So you're chugging right along with your plan, paying off debt, and rocking your budget. But then, those creeping thoughts start crawling into your mind. Once I pay off all these cards, will I just rack them up again? What if this cheap old car breaks down? I'll have to finance a new one! Is it REALLY possible to live a life without debt? I think you already know the answer to that question. Is life without debt truly possible? Yes! Of course it is. But that doesn't mean you don't have these doubts. I think everyone who's gone through the debt payoff process questions the whole thing at some point. You see, once we get so used to one way of life, it's hard to shift our brains to another way of thinking. Debt has probably been normal to you for as long as you can remember. I want you to know that it's normal to have these limiting ... View Post
How to Create Your Own Debt Payoff Plan: 5 Steps to Get Out of Debt
Paying off debt isn't a "one size fits all" approach. While there are a few different methods you can use to pay off your debt, they all require pretty much the same thing. Start living on less than you earn, then throw the extra money you save towards your debt payments. Sounds simple right? So how is it that so many people struggle to pay off their debt? How is it that sometimes people feel like they'll never be able to pay off all their debt in their lifetime? The truth is, paying off debt is not about analyzing all the numbers and treating it like some math equation. Paying off debt is all about mastering your mindset. Related post: How to Stay Motivated While Paying Off Debt And while you may hear that there is a right or wrong way to pay off debt, here's what I believe--as long as you pay off your debt, it doesn't really matter how you get there. If you want to become debt free but just don't know how, read on to learn how to start your own debt payoff ... View Post
How Much Money Should I Have in Savings While Paying Off Debt?
One of the very first steps to paying off debt is actually to have some money in savings first. If you're wondering why savings has anything to do with paying off debt, I think there's two important reasons. 1: If some unexpected expense pops up (new tires for your car, you have to pay your insurance deductible, etc.) you have some money to take care of it instead of putting the expense on another credit card. and 2: There comes a certain mindset shift that comes with having some money in a savings account, all to yourself. You have the peace of mind that if anything goes wrong, you've got some cash to cover it (see #1.) But it also makes it a reality that yes, you have some control over what you do with your money. You have the right to put some away. So if you're focused on paying off debt, I want to help answer the question of how much you should have in savings before (and during) the debt payoff process. I hear $1,000 is a good number to save, is that right? This one ... View Post
How to Treat Yourself While Paying Off Debt
Paying off debt is my passion. I love it when I see people take the step to start tackling their debt! But it can also be a very long process, and sometimes it is hard to keep that motivation up all the way to the end. That's why you need to "treat yourself." It can take the average person anywhere from a few months to many years to pay off debt. And while you're going super intense to pay it off as fast as possible, it's easy to get burned out if you're not careful. What I want you to take away from this post is that it's OK to treat yourself from time to time! You work hard for your money, and you should be able to reward yourself for that. Rewards can come in many shapes and sizes. One of the biggest rewards you can give yourself is the gift of financial freedom, and a huge part of that is paying off debt. But like I said earlier, the debt payoff journey can take a long time in some cases, and I want you to have some quick wins along the way. So how do you treat yourself ... View Post