5 Low Tech Ways To Pay Off Debt

Image via WikipediaYou go through your life noticing everything around you except what is going on in your finances. Unless your a royal nerd you are  sloppy with your money. But the day comes when you wake up because you have just opened that credit card bill and see a five figure balance. You think what did I get myself into. It's time to get things in order and pay it off.

If you realize something has to be done, you have just done step one of the plan. Realizing something is wrong and deciding to fix it is the first step on the journey out of debt and responsible living.

Go through your check register and credit card statements and see where your money is going. Write down everything you spend for one month, you'll be shocked how you waste money. Total up all your debts so you can see the monster your going to attack and destroy.

Forget the computers and spreadsheets get a piece of paper and a pencil and write down your paycheck at the top of the page. Now write down every bill that must be paid from it. Then set aside a portion for food, gas and a small pocket money allowance. What ever is left, use to pay down debt. Some pay periods you may only have $50 to pay down debt, while others you may have $500. Do this the day you are paid so you will know there is no more money to spend.

Put all you credit card debts on low interest balance transfer cards. This will lessen the time for repaying and save money to.

All this is not going to work if you keep going back to using your credit card. The credit cards have to die. Cut them up and say good bye, you won't miss them after a while. Remember they are the ones that got you into this mess. Well, really you got yourself into this mess but they helped.

Paying with cash gives you immediate feedback of the consequences of your spending. Credit cards come with an anesthetic so you don't feel the pain of your spending. I guarantee you will spend less over time with cash. Your spending IQ will go up when you find cheaper places to eat and shop.

Being open and honest with your better half will make the process go much better. The times will come when you feel constrained with the spending plan. It will cause some friction at first. But a healthy budget committee meeting will tackle that problem. Charting your budget and your debt paying, will build confidence in your plan. Seeing that debt go down will inspire everyone to keep going.

You will find motivation for your plan along the way because goals will be attained and new goals will be worked toward causing you to feel good about what you are doing. If you sell something or receive an unforeseen income all the better to get you where you want to be.

To Do List:

• Admit you have a problem with debt and form a plan to conquer it.
• Set up a budget with Income and expenses listed.
• Cut up the credit cards and switch to cash.
• Communicate often and honestly.
• Find motivation to carry on and finish.

Tools needed to eliminate debt:

1. Paper and pencil
2. A plan
3. Honesty
4. Motivation.
5. Scissors to cut up credit cards

With these tools and your plan, you will be able to take your debt and eliminate it. I guarantee it.


Reader: Do you have any tips on how to tackle the debt reduction process?

Money Saving Deals For April, May and June

Image via Wikipedia

The new quarter is fast approaching. Taxes are due soon and the refund checks are in the mail. If you want to save some money, I have listed the best buys for the next three months. The list is courtesy of LifeHacker.com. Happy Shopping.

April

• Cruises: Cruise lines are moving ships around this month. You can even book and travel on short notice.
• Car accessories & parts
• Laptops
• Fabric: Craft stores are shifting from winter fabrics to lighter spring fabric.
• Cookware
• Vacuum cleaners: The new models arrive in June.
• Sneakers: Sneaker makers are targeting less serious runners.

May

• Patio furniture: New stuff hits the floor, old stuff needs to go. Also, check out garage sales for last year’s stuff.
• Party supplies
• Cookware
• Vacuum cleaners: Just like last month, clearing out old models.

June

• Gym memberships
• Tools (June 1-20)
• Suits (June 1-20)
• Dishware: Like May, June is a wedding month, so dishes are cheaper.
• Off-season sports gear

For their complete list go to: http://lifehacker.com/#!5736625/the-best-times-to-buy-anything-in-2011

Do Your Kids Need A Cell Phone?

Image by yisris via FlickrIn most cases, whether or not to get your child a cell phone, especially if they are a teenager, is going to be like any other parenting decision. Things to consider include:

• Does your child really ‘need’ a cell phone?
• Can you afford a cell phone?
• Is your child responsible enough to take care of a cell phone?

My daughter came home from school one day and said, “I need a cell phone.” She’s 10. What I heard was, “Everybody has a cell phone. Can I get one too?”

My wife and I aren’t the type of parents to run out and buy something just because someone else has one. I know this gets frustrating for the kids, who see all the toys and gadgets their friends have, and would like to have more.

We never had the cell phone issue growing up. We just had to make sure we had enough change in our pocket for the pay phone, or call from the school office if there was a problem.

When we sat down and asked her why he thought he “needed” a cell phone, she gave the usual answers:
In case there’s an emergency at school
In case I need you to pick me up from school early

Both of these I shot down with, “then you can go to the school office and call us from there.”

There are different reasons why some kids should have phones and others don’t really need them. These reasons have nothing to do with age, but with their activities. If they are left alone often, then I can see having a cell phone, or if they will be late from a school activity or other event.

Safety is probably the main reason I would consider a cell phone for children.

If you’re considering getting a phone for your child, here is a link to some phones for kids with different levels of parental control: http://cellphonesforkidsguide.com/2010/05/08/best-cell-phones-for-kids-2010/

Reader: What's your experience with kids and cell phones?

Are You Suffering From Daily Deal Fatigue?

Image by paulamarttila via FlickrIf your Internet experience is one notch above e-mail then you certainly are the victim of the daily deal syndrome. When surfing the Internet you have signed up to some of your favorites sites and get their interesting daily or weekly emails. If your a smart shopper you have searched the Internet to find the best deal for your purchases. Not wanting to miss out on those good deals you have signed up to the deal websites so you don't miss that next great deal.

You see the ads saying "We have saved 50 to 80 percent at restaurants, tickets to movies and hotels stays." You can get deals to almost anything, even skydiving. With nearly 500 daily deal sites it's easy to get lost in the emails.

But some bargain hunters are feeling bombarded by e-mails coming from the sites. I have had to unsubscribe from many deal sites, I just don't have the time. Now I just use a deal aggregator. They collect the deals from multiple sites and send them all in one e-mail. Yipit.com, for example, compiles deals from nine sites. It's a lot simpler.

Being overrun with e-mails isn't the only problem. Some buyers say that they find so many deals that are too good to pass up that they overbuy or let the vouchers expire. Unlike traditional coupons, which are free, vouchers let you purchase at a discount, but they cost money. Letting a voucher go can cost a buyer $5, $20, or even $100, depending on the purchase.

But what many voucher buyers might not know -- and what the daily deal sites don't advertise -- is that customers can use a daily deal voucher for the price paid, even after expiration. For example, a customer who paid $40 for a massage worth $80 can still get $40 credit toward a service after the voucher expires.

Groupon-style deals are becoming too much of a good thing for businesses, as well. Some local business owners say they're growing tired of sales calls from daily deal reps.

Daily deal sites typically charge businesses 40 or 50 percent of the cost of the voucher. Businesses keep the rest. But some deal sites are so desperate for deals that they are settling for 30 or 35 percent commission. As more startups join the fray, some run deals at no cost to the business just to build an audience.

Sometimes it feels better to take a break and unplug from the daily deals. It gets to a point where you hope the Internet is down so you just don't have to see another deal.


Reader: How about you, do you suffer from daily deal fatigue?