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Our Debt Free Family

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Thanksgiving: Debt Update and Planning for the New Year

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<p>It is that time of year again, where many people are making resolutions and ours, yet again, is to pay off our debt. We have had some success this year, and even this month, but we are making aggressive plans for next year to help us become debt-free and plan our future. Here's the latest progress we've seen and what we've decided for next year so far.</p>::Pexels

It is that time of year again, where many people are making resolutions and ours, yet again, is to pay off our debt. We have had some success this year, and even this month, but we are making aggressive plans for next year to help us become debt-free and plan our future. Here’s the latest progress we’ve seen and what we’ve decided for next year so far.

Reviewing the Numbers

These were our debt numbers last month…

  • My Car Amount Owed: $21,302
  • Credit Card Total For Both: $502 (interest is a KILLER, folks)
  • Student Loans: $24,184
  • Matco/Snap-On: $7,449
  • Amount in Collections: $679

We’ve made some progress! Here are the numbers this week…

  • My Car Amount Owed: $20,550
  • Credit Card Total For Both: $490
  • Student Loans: $24,362 (the interest is from having the loan deferred until after the new year)
  • Matco/Snap-On: $7,129
  • Amount in Collections: $679

While it isn’t much, it is another $900+ paid off this month, and we are making big plans for 2020.

Plans for The New year

My husband and I have decided to bite the bullet and buy the Financial Peace University from Dave Ramsey. It is going to be our Christmas gift to one another (plus something else small for each of us). We’ve been listening The Dave Ramsey Show pretty often and believe purchasing the program and following the steps closely will really help us reach our goal of being debt-free.

By following the program, it is quite possible that we will be debt-free year year (or soon after). The idea of having all of our debts paid off and potentially be able to buy a home afterward is the dream for us. We both know it will be a lot of hard work, but it will be so worth it. And I can’t wait to keep you all updated on our progress next year!

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Biggest Slot Wins in US History

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Being the most popularized gambling machine in the world, slots are loved for much more than their over-the-top design, bright lights, and loud sounds. Over the last few decades, slots have become synonymous with huge wins – turning dollars and cents into a lifetime’s paycheck.  [Read more…]

When is Debt Settlement a Good Idea?

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<p>An astounding 15 percent of Americans believe they will be making payments on their credit cards until the day they die. On top of that, one-third of Americans believe it will take up to 20 years to pay off their current debts. Because of the overwhelming amount of debt most people living in the United States carry, many people find themselves wondering when debt settlement might be a viable option.</p>::Pexels

An astounding 15 percent of Americans believe they will be making payments on their credit cards until the day they die. On top of that, one-third of Americans believe it will take up to 20 years to pay off their current debts. Because of the overwhelming amount of debt most people living in the United States carry, many people find themselves wondering when debt settlement might be a viable option.

Dangers of Debt Settlement

While finding a way to settle your debt may be tempting, it isn’t always the best way to handle your finances. Essentially, a debt settlement company will negotiate a payoff amount for your account. You will no longer pay the creditor and, instead, will begin making payments to the settlement company. However, the process of working with these companies can actually hurt you.

During the process of working with the debt settlement group, you will have to cease making payments on your debt. These companies also don’t typically don’t start working with people until their debts have been past due for months. This means that your credit score will likely tank.

It also isn’t as good for your credit score as paying the account off in full. Normally, when an account is settled, it will be noted on your report as “Paid-Settled,” which is good. It doesn’t have as good an impact on your credit as a “Paid in Full” status though.

Additionally, using a debt settlement group can also make you feel like not paying your debts is okay. You aren’t really learning much about changing your habits to improve your long-term financial health.

When is Debt Settlement a Good Idea?

That’s not to say that debt settlement isn’t a good idea for some people. It is a necessary evil in some cases to avoid filing for bankruptcy or going into more debt with neverending interest being tacked onto your accounts.

Instead of settling, you may want to consider getting debt counseling. Contacting someone who is an expert in dealing with debt can help you see a way out of your mess. Sometimes being in debt makes it difficult to see a way out. A counselor can help you come up with a debt management plan and assist you in coming up with a doable plan.

If debt counseling isn’t for you, consider opening up communication with your creditors. Talking to them about your options may open another door for you. Many creditors will allow you a few months off of making payments for hardship. Give them a call and see what you can do.

And, if all else fails, debt settlement can be a good choice. I personally settled a debt with a third-party company recently. It helped me knock that off my credit and received a letter that it was paid in full. It helped my credit score tremendously and put a fire under me to get it paid off. If you’re already behind (like I was) it can be a good option.

Readers, have you ever settled a debt? What was your experience?

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It’s Not Too Early to Start Prepping for the Holidays

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<p>Two years ago, I got on the blog and talked a bit about people "Christmas shaming." Most people moan and groan when you bring up Christmas before Thanksgiving, but in all reality, if you begin prepping for the holidays early it can prevent you from going into debt and help you save money. Here's how we're planning to spend the holidays and a piece of advice for getting ready for your own celebration.</p>::Pexels

Two years ago, I got on the blog and talked a bit about people “Christmas shaming.” Most people moan and groan when you bring up Christmas before Thanksgiving, but in all reality, if you begin prepping for the holidays early it can prevent you from going into debt and help you save money. Here’s how we’re planning to spend the holidays and a piece of advice for getting ready for your own celebration.

Getting in Gear for a Busy Season

Before moving to Atlanta, we would typically travel or host holiday celebrations. Sometimes we’d go to Pennsylvania or Tennessee to visit family. Other times we’d host the holiday events at our home. Last year, we had Thanksgiving at our home and a Christmas celebration there as well. However, this year will be a bit different.

It is our first year away from home during the holidays together. We won’t likely be traveling anywhere to celebrate and our families won’t be traveling here. Instead, we will be starting some of our own traditions here in Georgia. Because I am a fan of establishing our own traditions and prepping for the holidays early, I’ve already begun brainstorming what we will do.

For Thanksgiving, my husband and I will be having a very small, intimate dinner at home. In place of purchasing a full-sized turkey, we will likely buy two small cornish hens. Of course, I’ll also cook up a few things to make sides and a yummy dessert. The total dinner should cost less than $25. We will also probably take the dog to the park and put up the Christmas tree that evening.

Christmas will be a little different. Instead of swapping gifts with everyone, we’ve decided to stay home and attempt to start our own fun holiday tradition. We will do Christmas presents for each other and send out a Christmas letter to our friends and family with a new photo of us and the dog. The letter and photos will cost less than $30 altogether. We will also have a yummy Christmas breakfast and likely a ham dinner on Christmas Eve. All in all, it will be extremely low-cost.

When Should You Start Prepping for the Holidays?

You’re reading this probably thinking, “why would you plan ahead for such a small celebration?” Well, planning ahead is what keeps my husband and me from racking up credit card debt around the holidays. We put caps on how much we will spend, plan out meals, and make things special by spending time with one another instead of placing value on items.

If you’re thinking you’ll spend a bit during the holidays, it is even more important to start prepping ahead of time. Not to mention, there have been studies to show that people who put up their Christmas tree earlier and prepare for the holiday are generally happier. They are also less likely to suffer from things like seasonal depression.

Forty-three percent of Americans begin decorating and preparing for Christmas before Thanksgiving week. You may even find planning ahead puts you in a better mood, overall. While it certainly isn’t necessary, it is a good idea to prep early to keep your finances and mood in check during the busiest time of year.

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What Determines Gold Price Per Ounce?

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Paper notes have risen and fallen over centuries, but the value of gold has always been preserved. Although cultures traditionally revered gold for its elegance, investors are now buying gold to expand their assets, inflation hedges, and to guard against the devaluation of the currency. Gold is a worthy investment, but little is understood on how gold prices are calculated and what determines the gold price per ounce. [Read more…]

Happy Holidays! Here Are Our New Year’s Resolutions

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<p>Christmas was extremely successful in our home this year. We managed to keep everything low-cost where presents were concerned. However, many of them haven't gotten in the mail for our relatives out of town (whoops). Christmas Day we went to the dog park with our baby (Enzo) and made homemade lo mein instead of ordering takeout Chinese. We ended the holiday looking forward to creating a vision board for 2019 and setting some New Year's resolutions.</p>::Pexels

Christmas was extremely successful in our home this year. We managed to keep everything low-cost where presents were concerned. However, many of them haven’t gotten in the mail for our relatives out of town (whoops). Christmas Day we went to the dog park with our baby (Enzo) and made homemade lo mein instead of ordering takeout Chinese. We ended the holiday looking forward to creating a vision board for 2019 and setting some New Year’s resolutions.

Setting Family New Year’s Resolutions

My other half and I have a lot of goals for 2019. This year will be our first year creating a Vision Board together. It will include financial goals, of course, and personal goals for us both. On the personal side of things, we would both like to get married next year. I would also like to train for and run a 5K and lose the last 40 pounds I have to reach my weight goal.

Financially, we both have the same long-term goal: be debt-free. However, to hone in on what we need to do in 2019, we’ve made a list of our debts and plan to snowball it starting January 1. Here’s what we’ve discussed so far…

  1. Pay off “small” debts by March. The other half’s car will be paid off by March. We will also have our credit cards paid off by then and a small medical bill ($242). Having these things paid off in full will leave us room to pay off other debts, including new tax debt.
  2. Focus on tax debt while making minimum payments on other accounts. We owe a little over $9,000 and have established a payment plan with the IRS. With my other half out of work last year, we weren’t able to put taxes aside as we normally do. After we pay down the smaller accounts, we will use all of our extra cash to pay this off. Once it is paid we are also going to begin putting big chunks of cash aside for future tax bills.
  3. After tax debts are paid, we will be making extra payments on remaining accounts. Once the IRS is paid, we will start throwing extra cash at the remaining accounts. We will still have our Conn’s bill (about $2,000 remaining), student loan ($22K), car loan ($20K), and the tool bill ($10K).

Creating a Vision

New Year’s resolutions are overrated for the most part. Many people abandon them by the end of March. For us, creating a Vision Board is more important than resolving to change in the new year. Instead, we are focused on large goals we’d like to reach by the end of the year. Each of the steps above will be part of reaching that vision and creating a life we want to live.

What about you? What are your New Year’s resolutions? Do you create a Vision Board?

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Debt Snowball vs. Debt Avalanche: Which is a Better Approach to Paying Off Debt?

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<p>There is no sure-fire way to handle your finances or handle paying off debt. Each situation requires a different approach, depending on your personal financial needs. So, when it comes to being debt-free, what is the best way to handle paying off your accounts? How do you decide between a debt snowball vs. debt avalanche?</p>::Pexels

There is no sure-fire way to handle your finances or handle paying off debt. Each situation requires a different approach, depending on your personal financial needs. So, when it comes to being debt-free, what is the best way to handle paying off your accounts? How do you decide between a debt snowball vs. debt avalanche?

Debt Snowball vs. Debt Avalanche

“Debt snowball” and “debt avalanche” refer to two ways you can choose to pay down your debt. Deciding which method is best for you depends on your own personal situation. However, there are pros and cons to both approaches. Here’s what you need to know.

The Debt Snowball

Snowballing your debt is a great way to pay off your accounts in a quick fashion. To use this approach you need to begin paying off your debt in order of smallest to largest. So, if you have three accounts that need to be paid with amounts of $1,450, $6,578, and $10,755, you’d start paying as much as you can on the $1,450 account. Pay the minimums on the other two until you pay the first (smallest) account off. Once you’ve paid that account, move on to the $6,578 debt, then the $10,755.

Perks of using this method are being able to see your debt is paid off in a quick fashion. It provides a feeling of accomplishment and helps keep you motivated. You’ll also be able to free up more funds as you pay off the smaller accounts to tackle your other debt.

When it comes to comparing the debt snowball vs. debt avalanche, one con of the snowball may be that you wind up paying more in interest over time. It may also take longer to pay off your debt this way. However, it is a tried-and-true method.

The Debt Avalanche

Using a debt avalanche is another great way to pay off your debt over time. Instead of paying down debt by the total amount owed, you pay it off by the interest rate. So, if the three accounts mentioned above had interest rates of 7.9%, 9%, and 12%, then you’d want to start throwing money at the $10,755 account with the 12% interest rate first.

The biggest perk of this type of debt payoff plan is you’ll pay less interest in the long-run. You may also find that a debt avalanche approach helps you pay your debt off faster than the debt snowball approach. However, it can be harder to maintain your motivation with the avalanche method. It can also feel like it takes a longer time to pay things down.

Choosing the Best Approach For You

When it comes down to choosing between a debt snowball vs. debt avalanche approach, both will help you meet your goal of being debt-free if you stick to it. The best way to choose which is right for you will depend on your personal goals and what keeps you motivated.

If you think you’d lose motivation with the avalanche method, maybe you should try snowballing your debt first. Or maybe the thought of saving money on interest will keep you pushing forward on paying off your debt. If that’s the case, try out a debt avalanche instead.

You also don’t have to choose one or the other. Sometimes the best approach to paying off your debt is a combination of the two. Deciding what will motivate you and help you reach your debt-free goal is most important.

Have you tried either one of these debt payoff approaches?

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8 of the Best No Credit Check Loans to Apply for Now

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<p>best no credit check loans</p>::Pexels

Approved loan application form lay down on wooden desk with rubber stamp and calculator.

Strapped for cash? A lot of us need the money to get by. The problem is many of us also have bad financial scores. Almost a third of Americans have scores below 601, which is the line between fair credit and bad credit.

Even then, you need the money, so you still need that loan. What do you do? Go for no credit check loans.

You can’t go out there without knowing which one’s right for you. You need the best loans with no credit check, but which one?

In this article, we’ll choose the eight of the best no credit check loans you can apply for now. This will give you the choices you need.

1. Payday Loans

The payday loan is one of the most basic cash loans out there. They come in a variety of types, but they have some common characteristics. Your generic payday loan can have one of the following:

  • Short payment scheme
  • 24-hour approval
  • Zero credit checks
  • Small on-time payment interest

If you’re short on cash, all you need is your ID and proof of stable income. The payment scheme for this loan type should be around 30 days, hence the name. You would need to pay for these no credit check personal loans on time, however.

Forgetting to pay on time can incur large penalties. Your interest rates can go as much as 400 percent on a late payment. If you think you need more details about payday loans, here’s how you can learn more.

2. Personal Loans

Personal loans are the opposite of payday loans. Much like the payday loan, no credit check personal loans have minimal requirements. These are great if you need a quick cash influx but don’t have enough money to pay in a single month.

Not all lenders omit the credit check, but there’s a lot that do. This means there are fewer hindrances and more chances for approval. These can provide for something as low as a hundred dollars to around a thousand dollars at most.

The structure of this loan type lets you pay within a few months without having to fork over all your money from your salary, which goes as short as 60 days up to 2 years for some providers.

3. No Credit Check Quick Loans

Quick loans are another variety of the no credit check loans in the market. Like its name, this type of loan provides the fastest approval and cash disbursement among all loans.

Quick loans need no collateral and dispense money as soon as possible. This is the best option if you’re a little bit on the short end but can pay for it soon, and since they don’t care about your FICO score, you don’t have to worry.

If you need some quick money and you’re willing to pay ASAP, then this is what you need for no credit check personal loans.

4. Bad Credit Student Loans

It’s hard to get student loans on the normal credit market. It’s harder, however, to get one on bad credit. Bad credit student loans are a great solution to this problem.

The bad credit student loan exists to help poor but hardworking individuals get financing for their studies, with a flexible student loan amount covering as little or as much as you need.

Need some extra money for textbooks? Get the best loans with no credit check for as low as $100.

Need to pay for your tuition? You can borrow as much as $15,000 with minimal fees. Payment is similar to personal loans no credit check type of requests, so you can structure the right payment scheme for you.

5. Online Installment Plans

Online installment loans are a type of no credit check loans that let you borrow money if you can show two things. These are:

  • An ability to repay
  • A US Bank account

From here, they will transfer the money straight into your account after a few quick hoops. The transfer time goes at around one business day, with the approval period being either instant or a few minutes long.

An online installment plan has a standard payment scheme. This means you are losing a bit of flexibility on how long you can pay. If you need a fast and hassle-free way to get a loan, however, this is the option for you.

6. Title Loans

Title loans are some of the minor collateral type loans in this list. Like all the lending programs in this list, this is in the personal loans no credit check variety.

Title loans tend to use small possessions as a sort of collateral. Most customers of the service use their cars as collateral because it’s quick to access and transfer.

This is one of the riskier types of loans around. It also belongs, however, to the loans with the lowest APR and best payment flexibility for you.

7. Mortgage Loans

The mortgage loan is one of the longest term loans in this list, and for a reason. This is one of the best loans with no credit check available for anyone who has a bad credit score.

The specifics of this loan includes long-term payment structures with large payout schemes. You can do this loan type if you’re a bit short for your house fees. It’s also best for people who want to pay off their mortgage early.

8. Small Personal Loans

Small personal loans are a variant of the personal loan. It has several key features, which makes it a good option for people who don’t need more than a small influx.

These features include:

  • Small principals starting at $500
  • Quick installments, quick repayments
  • Zero collateral
  • 1 – 2-day cash delivery

The good thing about small personal loans is they have lower interest rates than payday loans, so this no credit check loan is worth it.

Finding the Best No Credit Check Loans for You

If you are looking for a quick injection of cash, it’s smart to find the best no credit check loans out there. Before signing anything, make sure to read the terms and conditions. See what kind of financing structure is best for you.

Why do we care so much about your money? It’s because we’re all family, and it’s great if you are a part of Our Debt Free Family.

Our Debt Free Family is there to help you learn how to take care of your money matters. Whether you need a loan or want to control your spending, we can teach you how to get there.

Why not hack your way into debt and investing? We can teach you how to do it easy, so you can be part of Our Debt Free Family.

What is a Scottish Trust Deed?

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<p>What is a Scottish Trust Deed?</p>::Pexels

As the name suggests, a Scottish Trust Deed only applies to residents of Scotland and is a voluntary arrangement made between you and your creditors.

Under the terms of a Scottish Trust Deed you can make a proposal to repay your debts over a set period of time and therefore avoid bankruptcy (or ‘sequestration’ as it’s otherwise referred to).  If any debts remain outstanding at the end of the arrangement then they’ll be written off and you won’t have to repay them.

How does a Scottish Trust Deed work?

If you choose to enter into a Trust Deed then all your assets will be passed over to your Trustee.  He or she will then take full control of the arrangement and will endeavor to pay back as much debt as possible.  In order to achieve this some of your assets might be sold – for example, any personal belongings or property you might own.

Will I have to liaise with creditors myself?

No.  By entering into a Trust Deed you’ll no longer have to worry about making contact with your creditors.  Any correspondence or discussions with them will be done by your advisor, who will then continue to liaise with them throughout the arrangement.  All you’ll be expected to do is to make the monthly repayment to your advisor/trustee on time and then you can simply leave the rest to them.

How much will I have to repay?

When you first enquire about entering into a Scottish Trust Deed your chosen advisor will conduct an initial ‘fact find’.  This enables him or her to fully understand your financial situation and to work out how much you’ll be able to repay to your creditors on a monthly basis.  In making this assessment your advisor will ensure you have enough money left over to ensure that any debts which can’t be included are capable of being repaid through a separate repayment plan.  The main priority is that your repayments are affordable – especially if you enter into a protected Trust Deed, which is legally binding on all parties.

What’s the difference between a ‘protected’ deed and an ‘unprotected’ deed?

If the vast majority of your creditors agree to the proposal you’ve put forward then the trust deed is likely to be ‘protected’.  This means that the arrangement becomes legally binding and your creditors won’t be able to pursue you either during, or after, the arrangement to claim further money from you.

If, on the other hand, the deed isn’t protected then it’s not legally binding and you may still be pursued for any residual amounts once the arrangement ends.

How much will it cost?

You should ask your advisor for details of the cost before you enter into a Trust Deed as they can be very expensive.  However, the cost of it can usually be repaid as part of your monthly repayments so that you don’t have to find the arrangement fee up front.  However, if you have any concerns about the cost you should speak to your advisor.

If You Must Get a Debt Consolidation Loan, Here is How

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<p>If You Must Get a Debt Consolidation Loan, Here is How</p>::Pexels

 

Consolidate Your Debt in Three Steps

Debt consolidation is an option many people turn to when they feel they are drowning in debt. There is no doubt that, for some, it is a great option to consolidate and pay off your debts. So, if you have to pull out a debt consolidation loan, how do you do it?

Of course, consolidating your debt isn’t an overnight process. It will take some work and planning on your part. However, it doesn’t have to be complicated. In fact, it is as easy as 1-2-3:

Step One: List Your Debt

Before thinking about taking out a debt consolidation loan, consider whether you have enough debt to consolidate or not. Take some time to write down all of your debt. Include any loans and credit cards you have that need to be paid off. Generally, if this amount is $10,000 or more you can pull out a debt consolidation loan to ease your payments.

Be sure to list each of your debts along with the interest rate. Lower interest rates on payments may be worth simply paying off instead of consolidating. You may also want to consider seeking debt counseling before settling on consolidating your debt.

Step Two: Research Debt Consolidation Loans

Once you’ve established your need for a debt consolidation loan and have identified the debts you want to target, research the different types of consolidation loans available to you. Generally, there are three debt consolidation loans to choose from:

  • Unsecured Loans – Unsecured debt consolidation loans require good credit, which is a difficulty for many people looking to consolidate their debt. These types of loans will allow you to pull out a loan, based on your credit, and consolidate your debts as you see fit, into one monthly payment.
  • Secured Loans – Secured loans for paying off debt don’t always make sense. However, if you’ll save money on the interest they can be helpful. Secured loans allow you to borrow against money you have in savings or elsewhere to pay off your debt with one monthly payment. If the consolidation loan’s interest rate is less than your credit card interest rates or loan interest rates, a secured loan is a great way to go!
  • Private Student Loans – For many people, student loans make up the majority of their debt. If you want to consolidate these, you will have to pull out a private student loan. Many banks offer private student loans and can provide you with a lower-interest loan to pay your education off.

Step Three: Create an Easy Payment Plan

After deciding what debt consolidation loan is best for your repayment needs, determine the terms of your loan. If you can only afford $200 per month towards debt repayment, adjust the length of your loan accordingly. You should also be sure to put your payment date on a date that is always convenient for you. To ensure the loan payment is always made, set up an automatic payment. Making the payments in full and on time will help your credit score significantly.

If you find yourself gravitating towards a debt consolidation loan, you’re not alone. Just be sure you go through the steps above and define the best course of action for you and your finances.

Readers, have you taken out a debt consolidation loan? What was your experience?