Tagged With "Debt"

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The American Dream v2.0

Rob Loftus ·
Out With The Old And In With The New The American Dream. A house in the suburbs, 2.5 children, fancy car in the driveway and a job with a pension and gold watch. This may sound a little bit outdated, but it’s still the structure, on the whole, of the American Dream. However, there has always been one flaw in this dream. DEBT. 78% of Americans live paycheck to paycheck and are literally two paychecks away from losing everything. When this happens, and it does, people find themselves losing...
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What are some really effective ways to boost a credit score?

Briana ·
It's been a long journey of boosting my credit score - I'm currently signed up with Credit Sesame and get tons of helpful tips from them on how I can do this more effectively. But my question is - is it better to pay off credit cards slowly or all at once?
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Debt Pay Down Tool - Now THIS is Cool!!!

Men On A Budget ·
Without question, the biggest budget buster than my wife and I uncovered in our Penny Hoarder journey was the ridiculous amount of credit card debt and the accumulation of interest being charged on the interest, month after month. Have you added up the total of minimum payments and the amount of interest alone from just one month? We were aghast at how many of today and tomorrow's dollars were going to pay for yesterday's expenses... hundreds and hundreds of dollars each month. We found a...
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Payday loans - essential or evil?

Former Member ·
Have you ever taken out a payday loan? These short term loans have been discussed a lot in the news lately because federal plans to restrict payday lending (basically, a lender would have to prove you can probably pay the loan before giving it out) have been shelved for now. A lot of people say payday loans are evil because of their fees - some have interest as much as 700% . But others say they're essential for people who are unbanked or underbanked, meaning they manage their money outside...
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SUMMONS

Sango ·
Does anybody know of a book that one can use to give an answer to a summons to pay a debt?
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The Snowball Method for Paying Off Debt

Moore Income ·
I am curious to know if anyone here has used the Snowball Method for paying off debt and what the results were. I personally have done it a little differently (more like the avalanche method), only because certain credit cards I owe on are still under a "no interest" sign up bonus. To me the snowball method seems like a pretty effective way to do it. What are your thoughts? Have you tried any of these methods? What are some helpful tips you have used to pay off debt?
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Senior Couple drowning in debt

Birdman ·
We are in our late 60s but in good health and are drowning in debt. Our only asset is our home and what's in it. Car is leased. Our home is worth about $185,000.00 and we owe $72,000.00 on it plus have a home equity loan of $26,000.00. Our credit score is 700 and none of our many credit card and personal loan payments have ever been late. I have 1 personal loan of $85,000.00 from a friend at 6% interest that we now owe $29,000.00 for which the monthly pmt is $1,000.00. We need to pay this...
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Hello, to all

Karen White ·
My name is Karen. I am 69 years old, retired, and deep in debt which I am trying to pay off so I can be debt free. Not getting any where fast. When I worked I had no problems now that I am retired it is a struggle to say the least.
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Re: Payday loans - essential or evil?

Stephanie Weisman ·
Yeah I have three that I'm behind on, now. Everyday, two to three times a day calling. Don't answer my phone these days. I need help. Also, live in Texas, I do believe this is the worst place.
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Re: Hello, to all

Joyce Taylor ·
I know what you mean by struggling with bills. I have Medicals bills, I am trying to pay off, I just keep on working online until. i have some money to send my creditors.
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Re: What are some really effective ways to boost a credit score?

Jennifer scarlata ·
Effective ways to boost a credit score 1. Deletion of negatives 2. Clear your debts 3. A maximum of 10% credit utilization 4. Maximum of 3-4 credit cards more than that causes more harm 5. Dispute any errors or items in your credit report 6. If you ever get confuse contact an expert but be very careful 7. Use a reputable credit repair company This should help you http://creditstreamers.com/info/ I started building my score a few months ago and currently have a FICO score of 785
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Re: What are some really effective ways to boost a credit score?

Mike Johnson ·
These are some steps to get faster results: 1. Find out when your issuer reports payment history There’s something called a “credit utilization ratio.” This is the amount of credit you’ve used compared to the amount of credit you have available. You have a ratio for your overall credit card use as well as for each credit card. It’s best to have a ratio — overall and on individual cards — of less than 30%. But here’s an insider tip: To boost your score even quicker, keep your credit...
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Re: The Snowball Method for Paying Off Debt

Robert Kidd ·
Debt reduction
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Re: The Snowball Method for Paying Off Debt

Melissa ·
I'm a fan of the avalanche method too, but I would love to hear how people like use the snowball method. Pros vs Cons? As for helpful tips, I would say it helps me to physically write down every transaction I spend money on: groceries, gas, lunch out. This way I don't forget about the purchase and I can add up the totals at the end of each week. It's almost like a competition to see how little I can spend and the left over money does towards paying off my debt.
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Re: Senior Couple drowning in debt

Lyndsey ·
Maybe it’s time for a bankruptcy and a fresh start! I know it’s a last ditch effort, but why live the rest of your life in such debt? You can keep your home in most cases . It doesn’t cost a thing to look into it. If you or your husband are veterans, they have free financial help available to you.
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Re: The Snowball Method for Paying Off Debt

Savvy Susie ·
The avalanche method is best. Why? Because the goal is not only to reduce your debt but to pay the least amount for carrying that debt. The snowball method can cost you more to use depending on your combined debt and the monthly interest payments you accrue.
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Re: Senior Couple drowning in debt

Birdman ·
Thank you Lindsey. Yes, I am a veteran. I guess our 3 choices are Tirle 7 bankruptcy since we have no assets but the house and a life insurance policy, a reverse mortgage, or a Home Equity loan. Not sure which would be best.
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Re: The Snowball Method for Paying Off Debt

jenakle ·
Vertex42 has a great spreadsheet for comparing which method is going to save you more long term, and includes the ability to customize it (like paying a small one off first, then tackling a higher interest rate). I've tweaked it by copying the estimated pay off dates to the bottom and enjoy seeing the pay off dates reduce as I add extra money each month. I also love their monthly budget and checkbook register spreadsheets! https://www.vertex42.com/Calcu...tion-calculator.html
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Re: Senior Couple drowning in debt

Ray Taylor Tetreault ·
Birdman: You may have problems with a reverse mortgage. My understanding is that a home needs to be paid in full which my math is showing to be $98K (72+26) between current balance and equity loan. While your equity (assuming full market value, not including fees or interest) amounts to $87K, you may or may not qualify for another equity loan it would only shuffle debt, not really pay it since you are talking about $80k in unsecured debt. Bankruptcy may or may not be an option but be aware...
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Re: The Snowball Method for Paying Off Debt

Former Member ·
I've used both methods, and have found that when I REALLY need the motivation to keep going, the snowball method works best for me. While I might end up paying slightly more than if I used the avalanche method, the snowball method helps me see wins faster - which helps me stay motivated to roll that amount over to another debt once the first bill is paid off.
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Re: The Snowball Method for Paying Off Debt

freensp70 ·
Hi, I am new to the site. I am deeply in debt and going through a divorce. I am trying to figure out basically how to get back on track and where to start. My husband handled the finances and I am trying to figure out how I am going to pay off my debt and keep my head above water. Any suggestions of where to start would be great. Thanks.
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Re: What are some really effective ways to boost a credit score?

FreebiePharm ·
Some banks are flexible with this such as Discover. Others such as Chase will not lower your APR. I recently negotiated with Discover and they agreed to do a 6 month hardship at 9.99%, which is nearly half my previous APR. It has really helped me zero in on paying off that debt!
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Re: What are some really effective ways to boost a credit score?

FreebiePharm ·
There are also credit score stimulators online which can help you when debating how quickly and how much you want to pay off. For instance, you can plug in reducing your debt by $1,000 v. $5,000 and it will tell you how much your score will go up. Great for planning whether you want your money to go towards debt or emergency funds.
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Re: Debt Pay Down Tool - Now THIS is Cool!!!

Bonnie Squires ·
thank you this is my biggest thing now credit card debt and a light bill from our old place than my house payment
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Re: Debt Pay Down Tool - Now THIS is Cool!!!

FreebiePharm ·
I LOVE Bankrate! It allows me to visualize my paydown plan and edit as I need!
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Re: Payday loans - essential or evil?

Moore Income ·
I personally have never used a payday loan. However, I think they ultimately are hurting people when it comes to managing money. I can see how in some cases there may be a need for one but I don't think they should become something that anyone should rely on. The idea of getting your money now instead of waiting creates an attitude of instant gratification and if you are not careful, can lead to much deeper financial issues. Developing a mindset of getting everything "now" will only...
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Re: Payday loans - essential or evil?

Nicole ·
I have never taken out a payday loan & never intend to, as I believe that they are EVIL. I have heard that the interest is extremely unreasonable & it seems that these places pray on people that are unable to get credit for various reasons that need some sort of immediate help. It seems that they are located in some of the poorest areas of town with a lot of vulnerable people in the neighbourhood. That & cheque cashing places that charge extremely high fees. The government...
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Re: Payday loans - essential or evil?

Former Member ·
I was listening to The Indicator podcast the other day, which focused on payday loans. It shared the story of a woman who got a payday loan when she had a financial emergency, but then it spiraled out of control when she could never catch up after taking out that one loan. She explained that she would use a credit card to pay off a loan, then a new loan to pay the credit card, and so on and so forth. She's in a better situation now, but it helped put into perspective how an emergency...
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Re: Payday loans - essential or evil?

Vivienne Stephen ·
These loans are absolutely predatory and evil. They are concentrated in poor minority neighborhoods to take advantage of people who historically, have little or no access to credit. They are yet another tax on the poor. I include the rent-to-own stores and the buy-here pay-here car lots in that category as well.
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Re: Payday loans - essential or evil?

Arthur Pember ·
I have never had to take a payday loan, but I believe they are a financial tool that serves a need for un-banked or under-banked persons. The purveyors of these loans do not and could not remain in business by servicing customers who use the loan products to provide a stop gap in an emergency. The purveyors prosper by enslaving the customers to long periods of indenture paying increasing interest to service the loans. I actually compare the companies to drug dealers, bar owners, and casino...
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Re: Payday loans - essential or evil?

Bonnie Squires ·
I never had to use a pay day loan but fro hearing my daughter store. I would never use them. It took her about 2 to 4 months to pay her loans off. to me they just use people that are poor or can't get a real loan.
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Re: Payday loans - essential or evil?

Caroline Jones ·
I have used payday loans,unfortunately. However they got me out of a difficult situation..My goal is always pay it off asap.
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Re: Payday loans - essential or evil?

KerryE ·
Years ago I was stuck in a vicious cycle of payday loans. The only way I got out from under it was to borrow less and less each time I repaid/reapplied. Took me several weeks but I got away from them and never looked back. They are like escaping an abusive relationship. LOL
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Re: Payday loans - essential or evil?

AnnieB ·
Payday loans prey on the poor and minority population. They are evil. Source: I used to work for one. Quit the job because I could no longer live with myself. We were taught to battle objections for paying back the loan. We had an entire BINDER on collections practices. I have seen employees take checks to the bank to convert the check to a cashier's check when clients did not come in to pay the loan. I have seen employees who would ask the questions of bank tellers, "Is this check good? If...
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Re: Payday loans - essential or evil?

Adam ·
I would like to see post offices adopt more financial services so that payday loans would become obsolete
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Re: Payday loans - essential or evil?

Former Member ·
@Adam I love that idea, except our post office locations would have to increase their hours and their counter staff to make that work without frustrating the masses! I recently learned that some check-cashing/payday loan stores are open 24 hours. No wonder busy, stressed people go there - it's convenient as heck.
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Re: Payday loans - essential or evil?

Adam ·
I'd love to see the USPS expand its staff. I think it's also a good way for the USPS to respond to technological changes in the industry. I don't know if they would have to necessarily increase hours. I didn't check, but aren't banking hours and USPS hours pretty much the same already? The biggest reason I think those payday loan providers exist is because they are in areas where banks don't want to operate.
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Re: Hello, to all

Moore Income ·
Hello @Karen White nice to meet you! I understand the struggle of trying to pay off debt! Just when things seem to be getting under control, something else seems to come up and set you back. I just encourage you to not give up hope! It will take a lot of work and effort but it is possible. If there are any specific areas you could use help with or need any tips or pointers please don't hesitate to reach out here on the forum. There are lots of friendly folks who are willing to be of help in...
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Re: Payday loans - essential or evil?

Arthur Pember ·
Payday loan companies are responding to a market. They charge the high interest, because they can. Other than the unusually high rate they are not too much different than other companies that offer credit and loans. They all charge what ever the market will bear. Think of the actual rate of interest you pay on a credit card, if you only pay the minimum required amount. People who use their credit cards for convenience paying them off in the grace period or as quickly as possible pay little...
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Re: Payday loans - essential or evil?

Moore Income ·
@Arthur Pember I think the USPS already has their hands full enough trying to stay in business delivering packages and competing with other companies! You are right in the fact that they are similar in concept to a traditional loan. Unfortunately, the people who use payday loans consistently do so generally because they just don't have a good grasp on their finances. Without realizing it, they end up falling deeper and deeper into financial problems. I do believe there needs to be a little...
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Re: Payday loans - essential or evil?

AnnieB ·
The post office does not need to be in the payday loan business. Do we really need the government involved in another industry? They have enough problems. My issue with payday loan companies has nothing to do with interest. Remember, I said up thread that I have worked in the industry. My issue is with the collection practices. If you default on a credit card, you're receiving annoying mail and the occasional phone call. You may even end up receiving a judgment and a garnishment. Do the...
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Re: Payday loans - essential or evil?

Moore Income ·
Wow! That is pretty crazy @AnnieB ! That definitely sounds a lot worse than if someone were to simply fall behind on credit card payments!
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Re: What are some really effective ways to boost a credit score?

Sue sweet ·
Re: What are some really effective ways to boost a credit score?
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Re: What are some really effective ways to boost a credit score?

MsKimberly ·
I have not looked at my credit rating lately. This is something I need to make a point to do.
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Re: What are some really effective ways to boost a credit score?

MarieS ·
I have learned that since there are so many ways to help increase your score, focusing on one area and taking baby steps has helped me! Right now, I a focusing on minimizing my utilization of credit. I try to pay more then the minimum payment and then not touch the cards! I have already seen significant increase in my score in a short period of time!
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Re: What are some really effective ways to boost a credit score?

Moore Income ·
@MarieS True statement. I have got mine under 10% utilization and that has really helped my score!
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Re: What are some really effective ways to boost a credit score?

MsKimberly ·
Re: What are some really effective ways to boost a credit score?
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Re: What are some really effective ways to boost a credit score?

Prince_Alarming ·
Another way to help boost your credit is, Experian Boost. I'm not trying to advertise or anything like that, just passing on some good solid info. Experian Boost is free. It uses you electric bill, cell phone/home phone to help boost your score. Just thought I'd pass this on.
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Re: What are some really effective ways to boost a credit score?

Moore Income ·
@Prince_Alarming Thanks for sharing this tip. I had come across them before but wasn't sure exactly how it worked. I can see how that can be helpful.
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Re: What are some really effective ways to boost a credit score?

MarieS ·
I have never heard of that but I have always said how amazing it is that we are not able to include our household bills to establish payment history and credit worthiness! They definitely pull our credit to determine deposit information!!!! Definitely will check this out! Thanks for sharing!
 
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