Debt

Live Like in Early 19th Century to Become Debt Free

April 4, 2012
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Live Like in Early 19th Century to Become Debt Free

In my about page, I mentioned I can’t write about how you come out of debt, as I never have been in debt. I am rather, much comfortable in sharing ideas of avoiding debt trap and remaining debt free. Well, for this article I am going against that stated direction because, when I saw my neighbor fishing at a nearby lake few days back, an idea stuck my mind - What if people in debt start making their own food? The way our great grandparents did in early 19th century, and, adopt their life-style? Will it accelerate debt recovery? This morning I was reading various debt related blog posts.  All views were about concept of cost cutting and increasing income with variation in pitches. What about a situation where you don’t have control over these two things? I asked myself. Being a two member family, renting out, it’s very easy for us to cut cost and control spending. Being a hi-tech worker and having 12 years of experience in designing software programs also give me enough opportunity to remain employed even in a dull economy. Your situation could be completely different, I thought. You may not be able to increase your income, you may have a large

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Let’s Talk About Debt

February 23, 2012
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The following is a guest post from Suzanne of CareOne Credit No, I am not joking, I really want to talk openly about debt.  For many American’s living with economic challenges has become quite normal. Of course, most of us don’t really view the stress of mounting credit card debt as a ‘challenge’, but more of an inconvenience to be dealt with eventually…like retirement. Paying off or consolidating debt is one of those things on our to-do lists, something we resolve to work on with the New Year etc.  But, it’s not something we actually deal with, not until we have to. It is the lack of familiarity with their options that holds most people back from finding debt help.  It can be confusing to understand the difference between debt consolidation, debt management, debt settlement, bill consolidation, loans and more. The only well-known way to get rid of debt is bankruptcy and that is not really a solution as much as a last resort. So let’s make this a reality.  Take a few minutes, get online and do some research.  There is a wealth of information available on; blogs, providers of debt relief services websites, and reviews sites, all talking

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Get Into Debt Now, Before Time Runs Out

November 2, 2011
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Get Into Debt Now, Before Time Runs Out

You have been reading articles on avoiding debt or getting out of debt all along. Let’s try a different route this time. I will tell you some surefire ways to incur debt. No matter what state your finances are in, you won’t fail. SB guarantees that. 1. Help the economy by spending all you can. Haven’t you heard that spending helps the economy? The more you spend, the more sellers earn. Their family depend on your money. Be a philanthropist and help the cause. Don’t worry about your income. You’re a genius; you’ll earn later in life. Apply for a credit card and charge it – and make sure you have a high limit. If not, apply for a few more cards. You know you need to look good all the time. Your clothes are old; even your neighbor’s dog hates your clothes. Try new ones now. Go to the mall, they run sales all the time. Don’t buy cheap. See, that fellow walking ahead of you? Get clothes like his. Don’t forget to buy a few pair of shoes before they are out of stock; it’s your last chance! With cash, you can’t spend much without emptying your wallet,

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Save Money by Paying Your Debt Faster

October 18, 2011
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Paying debt at the minimum rate is not only a waste of time, it’s also a waste of money. You can save thousands of dollars, by paying off your debt faster. It may seem counterintuitive – to pay off your debt faster, you have to spend more money. That’s true, but you’re only spending the extra money in the short-term, a much shorter period of time compared to how long you’d be paying your debt if you stick with the minimum payments. Not only can you save money by paying off your debt faster, you can maximize the benefit of paying your debt off faster by investing your payments once your debt is completely paid off. How Much We Spend on Interest No matter what kind of debt you have, part of your monthly payment goes toward interest. That portion of the payment does nothing to reduce your payment. So, for example, if you have a $1,000 credit card balance and a 12% interest rate, your monthly interest charge would be about $10. When you make a $50 payment, your balance only goes down by $40. The other $10 goes toward interest. This happens month after month but on a larger scale if your debt balances are higher.

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You Are Debt Free, Can You Remain Debt Free?

September 5, 2011
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You Are Debt Free, Can You Remain Debt Free?

Have you looked at your health insurance documents lately? If not, you might want to do so. Your health coverage could end your debt-free adventure at any time. I have an Aetna policy with a $5,250 in-network deductible. So far this year (fortunately) SMB and I haven’t had to visit a doctor or hospital. But if either of us gets sick, we have to shell out money from our pocket up to this maximum. (I am not discussing the ways to choose a health plan, so don’t get distracted.) The point here is, whatever your out-of-pocket maximum may be, are you prepared to pay it off? Do you have that money? You have worked very hard and now you are debt free; a big congrats! Now the next big hurdle is to remain debt free and continue to build wealth till you become financially independent or till you die, as simple as that! Pundits will suggest don’t use credit card and you will remain debt free, what if you are on low income and can not cough up emergency cash without borrowing money? An illness is just one of the ways your debt-free life can be cut short. There are thousand of

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