There is a big change coming to Our Debt Free Family!
Recently, I’ve had a huge revelation and because of this revelation, I have decided to sell Our Debt Free Family.
That means that there will be a new owner and writer on the site.
How to Pay for College Without Going into Debt
Image Credit: PxHere
With the cost of education skyrocketing ever upward, it’s no surprise that prospective students are looking for any and all alternatives to student loans. Who could blame them? Is any degree worth putting yourself in five or more figures of debt at the start of your career?
I certainly don’t think so. The good news is that there are alternatives! They aren’t always easy, but they beat 20 years of student loan payments every time.
Choosing the Right School
Before you take out tens of thousands of dollars in student loans to go to that one school because it’s more prestigious than the rest, know this: Employers don’t care where your degree comes from as long as it’s accredited.
All that extra debt won’t give you a leg up on the competition for employment either. There’s nothing at all wrong starting school at an affordable two-year college and transferring to a university later. The degree you end up with is the same as if you’d spent all four years there.
Work!
Get a job, even if you’re taking a full course load. You’ve got time to work a little. Besides helping financially, previous work experience of any kind looks good on a recent graduate’s resume for multiple reasons.
It shows that you’ve got the drive. And it shows that you’re already familiar with the expectations and social intricacies that come with any job. Sure, you get a little less sleep and a little more stress, but the payoff is worth all of it.
Scholarships and Grants
There are tons and tons of scholarships and grants out there for just about every career path you could think of. You can’t get them, though, if you don’t apply for them! This is where good grades pay off.
Several states will pay for your first four years completely as long as you go to college in the state and stay above the minimum GPA they set. You’d have to be crazy not to take advantage of that! Many employers are starting to offer grants to their workers as well. It never hurts to ask!
Conclusion
The bottom line here is that there are ways around the crippling debt of student loans when it comes to pursuing higher education. They may not always be easy, but nothing worth having in life is. There is no replacement for the feeling of accomplishment you get when you do something complicated on your own.
Student loans should be a last resort instead of the norm they’ve become. Two-thirds of people who graduate with student loan debt claim that it wasn’t worth it. Don’t be them. You shouldn’t have to be stuck paying for education well into middle age. You should be someone who owns one of those beachfront Miami homes before thirty years old because you chose the more difficult path early on. You may not get everything just right, but in my experience, the path of action leaves the fewest regrets.
Our January 2022 Debt Update
The end of January is nearly here already and I can’t believe how quickly the month went by! I am happy to say that, during the first month of the year, we had some significant wins in our debt-free journey. Here’s the latest debt update…
Emergency Fund Wins
The biggest win of January was getting our emergency fund fully re-established again. For now, we’ve only got $1,000 socked away. However, as we pay more things off, we will be adding to this. Because my husband and I work jobs that can vary in pay, it is extremely important to have a few months’ worth of expenses saved just in case.
Debt Update
Now, for the numbers…
Altogether, we made $1.,503 in payments towards our debts. This leaves us with the following account balances…
- My Car Amount Owed: $20,217
- Credit Card Total For Both: $487
- Student Loans: $24,362 (my payment hasn’t yet hit my credit report from January)
- Matco/Snap-On: $6,673
- Amount in Collections: $679
Next Month
Next month we will at least make the same amount in payments and hopefully more. We also will continue to add money to our emergency fund when we have it. There are a few additional expenses occurring next month that will soak up a bit of our savings and debt payoff cash though.
We are preparing to register our car in Georgia (finally). Our North Carolina registration is up at the end of the month. To pass inspection here, register the car, and get our licenses, it will like cost around $1,000 (oof).
Outside of that, I can’t wait to update you on where we are in another month’s time. Remember, if you are on your own debt freedom journey that every tiny step forward counts, even if it seems insignificant now!
Readers, tell me about your recent debt wins!
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Financial Advisors: Content Marketing Opportunities
An emerging leader in the newest generation of personal finance blogs, District Media Finance LLC seeks to forge content partnerships with licensed financial professionals who want to position themselves as thought leaders online.
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Our blogs provide an opportunity to boost your visibility to a larger audience than what your own firm might have for its website.
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Our content is syndicated on Google News and our 58 sites have amassed over 11 million visitors since the company was founded in 2014.
Traffic is growing briskly on our blogs. We’re thinking that ones that have branding that would suit a financial advisor contributor are:
- The Free Financial Advisor
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For a complete list of our blogs, please visit our website.
Our Ideal Content Partner:
- Has several years of experience providing financial advice to clients
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To apply, please email a resume and cover letter to [email protected]. In your cover letter, please include a link to your LinkedIn profile, your company’s website and anything you may have published already. If you have writing samples, we would love to see them — it could be materials you created for your business or even an essay from B school.
Suicide Prevention Awareness Month: Remember, Your Debt Doesn’t Define You
Did you know nearly 30,000 Americans commit suicide every year? Although there are many reasons someone may choose to take their own life, in many cases, finances play a huge role in suicide. More specifically, individuals in debt are more likely to have suicidal thoughts. So, as a part of the 3rd Annual Suicide Prevention Awareness Month blog tour, I wanted to share some more of my personal debt story.
September is Suicide Prevention Awareness Month
According to research performed by the Money and Mental Health Policy Institute, there is a clear tie between finance and suicide. Individuals who’ve experienced a major financial crisis within the last six months are eight times as likely to have suicidal thoughts than those who aren’t holding any financial stress. The study went on to say that people with multiple debts, or individuals who are unemployed, are especially at risk.
Drowning in Debt
As you all know, I’m currently holding about $65,000 in debt with my other half. Although we already steadily work on paying things off, it gets heavy. Every time money comes in, it is going out on yet another debt repayment or bill.
If you’ve been following the blog for a while, you know that $65,000 in debt is still an improvement upon where I once was. At one point, I was homeless (living in a motel). I needed desperately to pay off a $1,600 debt in order to be able to have a home again. During my six months of being homeless, I hit some of my lowest of lows and, yes, even contemplated taking my own life.
I felt like life was a constant struggle with no relief. On top of feeling like I had no way out, I also felt as though my debt was burdening others. My other half just relocated nearly five hours to start a life together and I felt as though I was holding everything back – for him, for both of us. Not to mention, I was so broke and so tied down with finances that I couldn’t see many of my friends. I didn’t have a vehicle. I didn’t have money to go out. I felt alone.
Wake Up Call
We got a windfall that allowed us to pay off the $1,600 initial debt that was holding us back and got moved into an apartment within two months. After I got that paid off, I realized that things could (and would) improve as long as I remembered I wasn’t alone. More importantly, I remembered my life was more important than the debt I carried.
Debt is exhausting – emotionally and physically at times – but it is something most people have faced in their lives. If you feel like you are alone in this, you’re not. Millions of people are in debt, but it does not have to be a death sentence. I am living proof!
Startling Suicide Statistics
Because this month is about raising suicide prevention awareness, I wanted to leave you all with a few statistics and resources.
Who is at Risk?
- Suicide rates are highest in the spring.
- For individuals between the ages of 24 and 35 suicide is the second leading cause of death.
- Women are more prone to having suicidal thoughts, however, men make up 79% of all suicide deaths.
However, everyone is at risk for suicide if you experience depression or are feeling overwhelmed in life.
Suicide Doesn’t Fix Anything
I have lost family members and friends to suicide and I personally know the pain it can bring. Whether you’re up to your eyeballs in debt or feel like you are a burden financially, suicide is never the answer. In many cases, it leaves your family to pay for unexpected funeral costs. Not to mention, your family will experience an unbelievable emotional burden that will never be lifted.
Losing someone to suicide is absolutely heartbreaking. Speaking out about the link between money and mental illness, like depression, can help reduce the stigma and prevent further suicides.
This blog post is part of the 3rd Annual Suicide Prevention Awareness Month blog tour. If you are feeling suicidal, please call the National Suicide Prevention Lifeline at 1-800-273-8255 or text HOME to 741741.
Read More
- How Marian and Dave Paid Off $120,000 of Debt in 3 Years!
- How a Side Hustle Helped Melanie Lockert Break Up with Debt
- How Alicia and Ralston Used Faith to Cut Their Debt By $225K in Five Years
- Miriam’s Journey Out of Debt and Into the Life of Her Dreams
- How We Paid Off $65K of Debt in 11 Months on a Single, Middle Class Income
Is Being a Penny Pincher Losing You Money?
We all know at least one person that takes being “a penny pincher” to a whole new level. The ones that buy the cheapest toilet paper and pull the 2 sheets apart to make 2 rolls or the one that buys paper plates and tries to wash them.
I would definitely classify myself as being a penny pincher, but hopefully not to the extreme stated above! (My husband might have a different opinion of this!) From my experience, I’ve noticed that when one becomes too much of “a penny pincher,” it actually hurts your bottom line more than helps it. Here are some [Read more…]
Dealing With Debt And How It Can Affect Your Children
Debt is something that we all are, have, or will be dealing with in our lives, and it’s no secret that it can be quite the stressful experience. From stress about how we’re going to drum up the money, to the anxiety as to what might happen if we don’t can eat away at our nerves, but what about our children? How are they affected when we’re in debt? That’s what we’re exploring today. While online payday loans are available in a financial emergency, understanding how to deal with debt and how it could be affecting the little ones is a must – so read on to find out more.
How Does Your Debt Affect Your Children?
From babies and toddlers to older children and teenagers, your kids aren’t quite as oblivious to your stress as you might hope they are. The last thing any of us want is for our stress to rub off on our children, but the unfortunate fact of the matter is that it will – but is this always negative?
When we grow stressed, we may not be able to operate to our full potential no matter how hard we try and this obviously has an effect, especially on younger children. Stress can make us snappy, less inclined to spending time with the little ones and in general, completely different from how we normally operate. What’s more, a lower budget means that you may not be able to cater for the costs of school trips, socialising and they may have to go without basics when things get truly tough. As a result, a child’s mood, mental health and self-confidence could take a hit.
How Can You Deal With Your Debt?
With the above in mind, dealing with the debt you do have is vital. Stress is a natural reaction when things seem out of your hands, so it’s important to gain control where possible to help reduce stress on you, your bank account and your children. We’ve got a few tips below.
- Face Facts
First things first, you need to stop, think, and face facts. Coming to terms with how much you owe, what your income and outgoings are and what you can realistically start to pay off without risking the quality of life for you or your kids. Track down paperwork, bank statements, open up bills you might’ve been otherwise been ignoring and actually work out everything you owe. This might seem counter-productive for your stress levels, but by organising your debts and laying them out separately, you can start to tackle them individually as opposed to a large, terrifying total sum.
- Create A Budget
Remember the organisation you did in the above point? Well, now you can put it to some proper use. Crafting a budget is a great way to save money that you can put towards your debts without having to completely give up your lifestyle. While you might need to cut down on the leisure activities and swap them out for nights in or avoid the early morning coffee shop trips in favour of home-brewed alternatives, you can cut down your outgoing costs and put them where they’re needed more.
- Prioritise
When it comes to the debts you owe, you need to prioritise as opposed to trying to pay them all off at once. To do this, all you need to do is work out which debts have the highest interest rates, and start pouring your money into them instead. Of course, you’ll need to pay the minimum charges on all of your debts, but with any extra cash, aim for one debt rather than spreading it out across multiple and once that is paid off, move onto the next and so on.
Debt is an unfortunate fact of life and while it’s possible to avoid some debts, there are others we have to take on and it can often be overwhelming. While our children can be affected by our financial stress, there are thankfully plenty of ways to get your debts under control and hopefully, our points above have given you a good place to start.
How to Avoid Catastrophic Health Care Costs for Your Parents
According to the Kaiser Family Foundation (KFF), “About a quarter (26 percent) of U.S. adults ages 18-64 say they or someone in their household had problems paying or an inability to pay medical bills in the past 12 months. Now think about these same statistics as people age. With age, health care needs and costs tend to increase. This potentially means more personal indebtedness for those with health care issues.
How to Start Paying Off Debt, According to Dave Ramsey
Dave Ramsey has been a go-to for personal finance advice for decades. Thousands, and possibly even millions, of people, have turned to him for what they should do next. Ramsey’s specialty is reaching financial freedom, which we all want. The first step to achieving financial independence is paying off your debt.
That sounds way easier than it is though – so, how do you start paying off debt?
- Get organized. First, get all of your finances into one place so you can see everything. Mint is a great tool to use for this!
- Know how much you owe. Once you have all your finances in one place so you can see how each part is moving, write down how much you owe and what kind of debt it is.
- Start writing down a budget at the beginning of every month. A written budget is a great way to keep on top of things and you’ll be able to see and plan every part of your finances.
- Sell everything you can. In the video, Ramsey tells the caller to sell his $27,000 car. It doesn’t always need to be that drastic, but you can look for things around the house to sell or even downsize to one car if needed.
- Identify ways to trim your budget. Once you have been budgeting a month or two, identify places to cut cost. For instance, you will need to cut eating out, going on vacation, and many other fun things to achieve your goal of being debt-free (but it will be worth it). Check out this Budget Planner.
- Make extra money when you can. Whether it is picking up a second job, selling personal items, or odd jobs, find a way to bring in some extra cash. Then, put all your newfound money towards paying off your debt.
If you’re interested in learning more about Dave Ramsey’s steps to getting out of debt, check out The Total Money Makeover
Readers, have you read or listened to Dave Ramsey in the past? What do you think about his response above?
Consolidation Loans Are Tempting – Here’s Why You Shouldn’t Get One
My debt situation and money situation hasn’t necessarily improved since I last updated you here. Some major changes have been:
- Open discussion about selling one of the cars.
- Finding other items in the house to sell.
- A solid plan to find my other half a job through temp agencies in the area.
- When we have $1,000 saved, we will begin to snowball every penny towards our debt until we are relieved of some of this pressure.
- After we are a bit more comfortable, we will increase our savings to cover a six-month emergency. That way, if either of us is out of work for an extended period again, we are prepared.
During the process of settling all this, one thing came up over and over: should we consider getting a consolidation loan. Of course, it would help us pay a lot of our “petty debt” in one fail swoop, but isn’t taking on new debt to pay off debt just continuing the cycle?
If you’re considering pulling out a debt consolidation loan, hear me out. They aren’t all bad all the time. They’ve helped some people out tremendously, but here are three reasons we opted out.
Say No To Consolidation Loans
There are a plethora of reasons to “just say no” to consolidation loans. You may be paying a higher interest rate for a longer period of time (even if the payment is lower). There is also no guarantee your interest rate will remain the same in many cases. Below are the three main reasons we decided not to consolidate.
1. Our Credit Scores Aren’t That Great
We are back in that spot where our credit scores aren’t that great. We’ve missed some credit card payments that have hit our credit. Luckily, we’re planning on building a life where we won’t need a credit score because we won’t be looking to take out any debts. Also, our payoff plan will slowly increase our scores over time.
2. Most Consolidation Loans Want Collateral
Many consolidation loans want to know that if you don’t pay there’s something they can hold as collateral. For me, they wanted my car – which is worth far more than I have to consolidate. That alone was enough for me to not want to move forward.
3. What Are You Learning From Taking Out a Loan?
As I chatted about in our debt update, we’ve become fans of Dave Ramsey. In general, he doesn’t “believe” in debt consolidation because it tricks people into thinking they are eliminating debt. When, in fact, you will be in debt longer by consolidating. It may impact your life in a positive way immediately but if you really want that financial freedom, we all need to learn how to be more patient and do things the “long” way. Which, in this case, will actually take less time.
Everyone’s Finances Are Different
You may be reading this saying, “But Amanda, a consolidation loan helped me and my family get back on the right track.” That is great! I’m happy for you. However, for my situation and current debt, a consolidation loan would simply elongate the amount of time I’ll be in debt. Not to mention, my other half and I feel we need this time of “discomfort” to really enjoy, appreciate, and maintain our financial freedom in the future.
After taking a look at our finances, many of our smaller debts, we could pay off in a single swoop if we made it our focus. A few of them will be paid off in the next few weeks (yay).
Readers, I’d love to hear back from you on this topic! Have you consolidated debt? Did it help or hinder your financial situation?
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