Debt

Saving Money On Utility Bills

February 25, 2021 By Joe Wallace Leave a Comment

Right now everybody wants to know about saving money on utility bills. The Texas winter weather debacle is a powerful reminder that it’s a very good idea to make sure your home is not robbing you of hard-earned money. The spikes in natural gas demand drove prices higher and people were suddenly forced to reckon with thousand-dollar-and-up utility bills.

When the power comes back on for these people, it’s entirely likely they’ll be wanting to learn how they can save money in the future with their utility bills, having been badly burned by things they didn’t see coming.

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Taking Stock Of The Home

After the initial shock of that dissipates, many homeowners and renters alike–myself included–want to double down on the efficiency of their homes to avoid losing money for preventable reasons.

My own version of this started by checking all my windows. Sure enough, mine were drafty. And it was below freezing outside when I checked, so you can imaging how that must have felt–realizing I’d been letting money literally blow away because of poorly sealed up windows.

Once I fixed that, I started looking at other things around the house; that drippy faucet suddenly had my full attention. The fact that my fridge needs to be turned up VERY high to keep my food cold means either I’ve got an overstuffed fridge (sometimes I do) OR a unit that needs to be maintained properly.

One area I was already thankfully squared away in? My thermostat. It’s one of the “smart” thermostats which have programmable timers and other functions designed to increase the energy efficiency of the home. This is an investment well worth making. If you have a “dumb” thermostat and own your own home, seriously consider one of these.

Saving Money On Utility Bills With Gadgets

One of the last things I did after fiddling with my already-fancy environmental controls (fancy for ME, this is one of the typical systems and not a “Cadillac of A/C and heating”) I immediately made the rounds of the house cleaning out the ductwork and grills, closing some and opening others to help maximize the airflow where it’s needed.

One thing I am glad I don’t have to change–most of my appliances are already those with Energy Star ratings. This is a good thing.

I don’t have any numbers to give you regarding how much all of this might save me–after all, this is a project I embarked on in the last week or two at the time of this writing. But the whole exercise left me feeling like my efficiency was on the rise and my money-wasting problems where the utilities are concerned are–with a bit of luck–fading in the background.

If you have never taken stock of your home in this way, don’t delay–you could be spending a lot more than you think unnecessarily.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Are You Serious? 232K in Debt

February 16, 2021 By Vicky Monroe Leave a Comment

In a recent blog, a mom from Alaska shared her family’s six-figure debt to get some advice and support.

She and her husband have about $232,000 in debt spread across multiple credit cards, car notes, and student and personal loans.

They’ve been paying down their credit cards and loans for a few years, so they started off with even more debt. Originally they owed nearly $300,000 and have paid off around 21% of it so far.

Although that’s a huge accomplishment, they still have a long way to go. Here’s a spreadsheet that shows all of their debts and monthly payments.

When you tally up the amount they owe every month, it comes out to a whopping $4,807.

They’re spending about $57,000 per year just on debt service, which is likely causing huge amounts of stress. Not to mention edging out other financial goals like saving for retirement and their children’s college funds.

How did this happen, and how can they climb out of this hole?

How Does This Happen?

TheBudgetingNerd mentioned in her post that her husband keeps charging up the credit cards. It seems like he doesn’t know how to live within his means, which caused them to accumulate a huge pile of debt and keep adding to it.

Unfortunately, they’re not alone. About 80% of Americans have consumer debt and the majority of us live paycheck to paycheck.

Some Americans have debt because the minimum wage hasn’t kept pace with inflation and they can’t afford the basics. But if you make a decent income and have credit card debt, it’s time to take a hard look at your budget before things spiral out of control like it did for this family.

Getting Out of a Six-Figure Debt

One of the first things that TheBudgetingNerd has to do to tackle this debt is communicate with her husband and get him on the same page. They can’t dig themselves out if he continues overspending, so he needs to adjust his lifestyle.

There are also four vehicles listed on the spreadsheet, but only two drivers in the family. Downsizing and getting rid of two of the cars would eliminate a lot of debt.

One commenter pointed out that the balance on their high-interest Capital One Card hasn’t changed much in the years they’ve been paying down their balances. They suggested using the snowball method and tackling the highest interest debt first, which could help them make more progress.

TheBudgetingNerd also said in the comments underneath the post that her husband is in the military. Active duty service members usually qualify for lower interest rates from credit issuers, so taking advantage of those programs could help lower their monthly payments.

Another plan they have is to move into their camper so they can use their $2,253 housing allowance from the military to pay down their debt faster. This is a big sacrifice considering they have 3 kids, so I really applaud them for this.

If they get lower interest rates on their credit cards, move into the camper, and get on a strict budget, they’ll be able to tackle their debt much more effectively.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.
Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

5 Lessons I Learned From Paying Off Student Loan Debt

January 20, 2021 By Rachel Slifka Leave a Comment

Do you have student loan debt? If so, you are not alone. According to ValuePenguin, the average debt among student loan borrowers in the United States is over $32,000. Ouch.

When I graduated college, I was near that average with $30,000 in student loan debt. And then, I got married and joined my finances with my husband. Combined, we had over $70,000 of student loan debt. We paid this off in 5 years as recent college grads. And while I can look back and rather have not spent over $70,000 in paying off debt, I’m eternally grateful for our student loans. Here are the biggest lessons I learned from paying off student loan debt.

1) My Financial Situation Doesn’t Define Me

Student loan debt is just a number. I learned my financial situation doesn’t define me.

I can have debt and still say yes to things. I can say no to other things. Debt isn’t good or bad….it just is. Money is important, but it certainly isn’t everything. Now that I’m debt-free, my life isn’t drastically different.

When I was in debt, I spent a lot of time making it mean something about me. I thought it meant that I was irresponsible, and that I didn’t deserve to spend money. I beat myself up over even buying something off the dollar menu at a fast-food restaurant.

Looking back, I wish I cut myself some more slack. We had a solid plan to pay off our student loan debt early. I wish I trusted in my plan a little more, and allowed myself to live a little. After all, isn’t that what life is all about? There are resources out there if you need help with your student loan debt.

2) My Student Loan Debt Was Not a Mistake

Again, student loan debt isn’t good or bad. It just is. It certainly wasn’t a mistake.

I spent a lot of time regretting my student loan debt. How could I have let myself borrow so much? Why didn’t I work more throughout college, or go to a community college first in order to avoid taking out so much in loans?

As I did more mind work, I realized my student loan debt certainly wasn’t a mistake. It provided me with so many opportunities. Without it, I wouldn’t have launched my career, met my now-husband, or be the person I am today. My student loan debt launched my personal finance journey, and has given me so many opportunities. Sure, it was not the easiest lesson to learn, but I’m so grateful I did!

3) Making More Money is Fun than Being Cheap

When I first graduated, I had a bare-bones budget. It was all I could do to scrape together enough to pay the minimum required payment to my student loan debt each month!

Frugality works, but it requires a lot of work and can only get you so far. I found myself living with roommates, couponing, eating rice and beans, and even going on a shopping ban for three years!

Then, I started freelance writing and earning extra money on the side. At first, I started writing simply because it gave me a creative outlet after my day-job. Although at first, I was only earning a few hundred extra bucks a month, it was enough to pay my minimum student loan payment. I could then free up a little bit of my budget. I allowed myself to spend a little on my day-to-day spending to be less frugal, but then I put the rest towards my debt, making nearly double the minimum payment at first.

Once I started freelancing, the opportunities really began to take off in both my day job and side gig. I job-hopped and worked hard in order to quadruple my income at work. I also started charging more for my freelancing services, and found more clients. During busy months, I started bringing in an extra $5,000 in freelancing cash!

Most of this went to our student loan debt. While extreme frugality maybe could have worked, it was so much more fun to spend my time growing my freelance business than it was clipping coupons. Plus, now that my debt is paid off, I still get to enjoy the extra income and put it towards our savings goals!

Find more freelance opportunities here.

Platforms	Best For:
Fiverr	Finding Freelancers
Bark	Finding Unique Freelancers
Appjobs	Gig Economy Professionals

4) I Love Being In-Tune With My Money

When paying off my student loan debt, I checked in with my money daily. And guess what? I still do this.

I actually love checking my bank and investment accounts. It’s so fun. No matter what financial goal I’m working on, I love being in-tune with my money.

Learning to love my money has been a game changer. And when my mindset shifted, I started thinking of my debt repayment journey as a game. It was so liberating to see just how far I would get in meeting my debt repayment goals!

5) I’m Grateful for My Debt

After graduation, I resented my debt. I was so mad at everything. How could I let myself get into debt? Why did my parents let me take out so many loans? Why does public schooling still cost so much? Why don’t we get more financial support?

Once I stopped blaming other people for my debt and owned it, it was like a weight was lifted off my shoulders. I was able to push aside all of the negative thoughts I had about debt and about myself, and truly learned to love the journey.

While I wasn’t grateful for my debt at first, I learned to love it, even when I was still paying off my loans. And looking back, I see how many opportunities my debt provided me. It allowed me to take leaps into higher paying roles at work. It motivated me to start my freelance writing business. It gave me the means to attend University. It takes a lot of work to become truly appreciative of debt, but once you start the journey, your life will change for the better.

Financial Coping Advice in a Pandemic World

December 18, 2020 By Allen Francis Leave a Comment

After weeks of employments reports where only 700,000+ people applied for unemployment insurance in a week, over 855,000 people applied for unemployment benefits this week.

It looks like unemployment applications are slowly inching back up to the 1 million+ range per week again.

For millions of Americans, there is not a lot of reasons to have hope in a post-pandemic world.

Don’t be overwhelmed. Here is what you must consider doing now.

Develop Long-Term Goals

The world is not fair. That phrase has practically become my daily mantra, However, there is no hope in despair.

If you don’t have a job now, think about what you could potentially do in the future. How could your previous work skills and professional experiences be re-purposed in a post-pandemic world?

And consider how you can start over. As cruel as it sounds, we are all starting over again.

There are many online education platforms that are offering free and reduced-price online classes for unemployed people and government employees. Check out edX and Coursera to start with.

Start reviewing jobs in the online gig economy and remote jobs industry. Consider your existing skillsets and the new skills you can reasonably acquire in the near term and how you can leverage such into new job opportunities.

Be realistic, be patient, and don’t be rash – it will take time for you to chart a new employment future.

Get an Emergency Fund

Before the pandemic struck, the general wisdom was to try to put at least the equivalent of six months’ worth of paychecks in an emergency fund.

Now, such an advance is just not realistic for people, and it is cruel to say to people.

Since the pandemic wrecked the economy, over 70 million people may have lost their jobs. The government offered a one-time $1,200 at the beginning of the crisis.

Now, many people are months behind in rent, mortgage payments, and other various bills. And on top of that, many of the jobs that evaporated earlier are not coming back.

These jobs will be obsolete or rendered moot by the workplace occupancy reduction mandated by social distancing mandates and the advent of remote working.

If you are one of the lucky ones to still have a job, it is imperative that you put some money in an emergency fund, no matter how little.

You can put 10% or 5% of your regular pay into an emergency fund. Every little bit helps.

In this economy and the uncertain future we all now face, it is better to have a little bit saved in an emergency fund than nothing at all.

Additionally, having an emergency fund could give you a better sense of personal security in a world turned upside down.

Here are some emergency fund platforms you can try or invest in.

App	Fess and minimum:	Best for:
Digit	30-day free trial period. $5 per month	Setting aside automatically
Acorns	$1 per month	Spare change investing.
Qapital	$3 membership	Letting you set rules to automate savings.

Pay Down Your Debts

The only truly certain things in life are taxes, death, and debt. Depending on the kinds of debt you own, you can’t even escape that after death.

There are many Americans grappling with compounding debt issues and unemployment.

If you are fortunate to be employed now, develop a plan and timetable to pay down your debts. Get on top of your debts now or they will get on top of you in the future.

Develop a Budget

Develop a weekly and monthly budget to make the most of the finances you have now. Think about what you can do now instead of what you can’t do. There is no future in despair and the future is coming now.

To get your personal budget started, you can use these savings platforms as mentioned above. You can also start investing in platforms such as these.

Platforms:	Fees and Minimum:	Best for:
Robinhood	Free	Beginner investing
Acorns	$1 per month	Spare change investing
The Motley Fool	$99 for the first year.	Stock advising

Or you can also try saving directly to the bank on these plaforms:

Platform:	Fees to sign-up	Best for:
CIT Bank	Free	Wide range of Financial Services
Lending Tree	Free	Best for keeping an eye on credit score
BBVA	Free	Safe digital banking

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What Happens if Debt Collectors Can’t Find You?

November 18, 2020 By Trey LaRocca Leave a Comment

Having accounts in collections can be devastating to your credit. As such, your first priority should be settling any debts that collection agencies have gotten ahold of. If that isn’t an option for you yet, you may find yourself avoiding a lot of calls and letters. After all, what can a debt collection agency do if you can say you’ve never heard from them? What happens if debt collectors can’t find you?

Alternative Points of Contact

One of the first things that collection agencies will do in order to get ahold of you is to get in touch with people close to you. Collectors are allowed, in most states, to contact you family, neighbors, or even your employer. While they can’t disclose any information about your debt, or even that you owe one, having your employer get a call from a collections agency can send the wrong message.

Dying Credit

For every second that your account stays in collections, it will be tanking you credit. Not only will your score suffer, but most finance companies will automatically disqualify you for any new credit as long as the problem remains. This is probably a good thing, because having an account in collections means that you probably don’t have the means to make payments just yet. So, if collectors can’t find you and get you to pay, you will have an essentially useless credit profile.

Your Debt Changes Hands

Just like the original institution that sold your debt to a collector, that collector can sell your debt again. If it becomes too much trouble, or isn’t worth enough to sue over, collectors will sometimes sell debt amongst eachother. This doesn’t really affect you unless the new agency has a more aggressive strategy in settling your debt, or may be less inclined to make a deal. So, if you aren’t having trouble with your current debt collector, don’t think that you’re safe from a more aggressive one taking over in the future.

Lawsuit

If you legally owe a debt, and a collector has the right to collect on it, you can be sued. If they can’t find you to settle the debt, you really leave them no choice. Debt collections agencies can be pretty predatory, and the negative ramifications of a lawsuit in your life don’t typically concern them. If they win a lawsuit, they could legally garnish your wages or your current held assets in order to settle the debt, depending on where you live. This is the primary reason that you need to take care of accounts in collections.

Maybe They’ll Leave You Alone (Probably Not)

This is more of a fantasy outcome, the one that most people are hoping will happen when they start ducking collections calls. The odds of this happening are very small, but they aren’t non-existent. If your debt is really small, there is a chance that a collections agency just loses track, or doesn’t find it worth the trouble. With small accounts like these, they can’t find anyone to buy debt worth so little. It is important not to count on this, though, because it really is a fairy tale ending. Most likely, if your are delinquent long enough, you will get sued if the agency has the right to do so.

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How To Manage Your Loans

October 26, 2020 By Susan Paige Leave a Comment

You’ve gotten yourself into a lot of debt. So, what are you going to do now? While taking out a loan isn’t necessarily something that you may have wanted to do, sometimes this can be inevitable when you’re still starting out in life, or when the payables just keep piling up. Many people aren’t familiar with the concept of debt. This can make it difficult for them to understand and deal with loans on their own. [Read more…] about How To Manage Your Loans