Credit card debt can often feel like an endless circle. You make payments every month, but it still doesn’t seem to come down. Considering the interest rates, having a big credit card debt can hurt your finances and even cause you debt stress.
The good thing is that there’s always a way to get out of debt. However, you’ll need a good strategy, so we’ll take you through a few of the most effective ones.
Consider Debt Consolidation
If you have a good credit score but are servicing multiple loans, you can consider consolidating them. This brings all your loans into a single account, such that you only need to make a single payment every month.
Going for another loan might seem counterproductive, but it can actually help make everything cheaper and stress-free. You stop worrying about multiple loans, and in most cases, you even get a cheaper interest rate.
The process is simple when you approach a creditor, and there are even easy debt consolidation loans that won’t affect your credit score, and everything is handled online. However, ensure you look at the transfer fee, interest rates, and repayment terms. Negotiate for payments that are suitable to you but will still help you get to financial freedom faster.
Pick a Payment Strategy: Snowball or Avalanche?
When paying off multiple loans, you need a strategy that can keep you, the debt, and your credit score in check. Here, there are two tested and proven approaches you can pick from (or mix and match).
The first is the debt Snowball method. It involves coming up with a list of your debts and prioritising them by the amount. You then start by paying off the smallest and moving to the next one regardless of the interest rate. In this method, the benefit is psychological – you knock off debts and use the quick wins to build momentum. When a loan is fully repaid, the monthly payments go to the bigger loans.
An alternative is the Avalanche approach. It also starts by listing all debts but ranks them based on the interest rate. Instead of paying the smallest debt, you pay off the card with the highest interest rate. You then move on to the next one and continue until all are paid off. This approach can see you wait for your first win for long, but it’s the most efficient in savings.
So which one should you choose?
Well, there’s no wrong or right answer here. The choice should depend on how your mind works best. If you want small wins to stay motivated, go with Snowball. If you want to save every cent you can, Avalanche will work for you.
Set Up a “Debt Payoff” Budget
While we can get into debt due to situations like medical emergencies, at other times, it’s due to poor expenditures. To pay off your credit card debt faster, you need to have a clear idea of where your money goes and a budget for paying off the debt.
A standard budgeting strategy for such situations is the 50/30/20 approach. Basically, it involves listing all your expenditures and dividing your income into three categories: 50% for needs (like rent, groceries, and utilities), 30% for wants (entertainment, dining out, and hobbies), and 20% for savings or debt reduction.
With credit card debt in the picture, you need to allocate that 20% to paying off your debt. Try to limit the “wants” as much as you can so that you can increase the 20% allocation for debt.
Engage your creditors
You don’t have to walk the journey alone if the situation is difficult. Many creditors in Australia are open to working with customers to manage their debts, especially if you’ve been a longtime customer and have a good track record of payments. If they have a hardship program, it can help provide some relief in circumstances beyond your control, such as unemployment or illness.
The creditor may also be willing to lower your interest rate or even offer you a temporary pause on payments. All these small reliefs can be all you need to get back on track during tough situations. They help manage debt better and without stress, which translates into clearing the debt faster.
IN JANUARY, I surrendered to passionate irrationality, buying a park unit in Arizona that has become my second home.
Now I understand why, at least in the movie cliché, a man might buy house slippers for his long-suffering wife’s birthday, while giving flashy, expensive baubles to his girlfriend for no reason at all.
My single-wide “girlfriend” is tiny and fragile, the bloom off her youth. Things that improve her are easily obtained. A phone call to a friendly fellow at a store, the provision of a credit card number, and—voila—my private world is transformed for the better. Rational me knows the value I derive from each expenditure might be marginal, perhaps an imaginary gain or even an actual loss.
Meanwhile, our longtime family home in California could also benefit from a new refrigerator, as well as much, much more. Over three decades of living in that house, I’ve remodeled, bought new appliances, replaced a furnace, changed out windows, and completed countless other projects. I have clear memories of improvements that helped and ones that disappointed.
As of today, my 2007 kitchen remodel refrigerator has yet to die, so I’m thinking it can wait another year. After all, even when I’m living in the old family house, I’m not staring at the refrigerator nonstop. I might be in the living room, or dining room, or upstairs or out in the yard, with no thoughts of refrigeration clouding my mind.
Here in my immobile home, the living room is also the dining room and the kitchen. Its tiniest flaws, any neglected maintenance, sit in plain view. On top of that—though not always the case—improving my single wide can require minuscule amounts of time, effort and cost. Less than a single quart repainted the “kitchen” and, with under 20 square feet of visible wall, no ladder was required. The whole of the “living room” took one evening to paint.
In a minor triumph of inspiration and imagination, I removed two cupboard doors to create a built-in bookshelf. Then I repurposed the doors as a faux cupboard, masking a badly executed prior owner’s remodeling project. Total expenditure: zero dollars and an hour with a screwdriver, tape measure and level.
Refurbishing the main family house, by contrast, usually involves dollar amounts that start close to $1,000 and easily end on the high side of $50,000. Not to mention weeks or months of arranging details and schedules with scarce home-improvement contractors.
Even here in Arizona, in the land of easy upgrades, a new refrigerator is not a low-cost item. Neither was the washing machine, nor installing a water conditioner. And I have my eye on an electric induction range next.
The easy immediacy of improvements in a small home is a delight. I see changes in an afternoon, making the place ever more useful and attractive as I put my individual stamp on its functionality.
I like to show off my trophy wife—or is it girlfriend?—of a holiday home. Family and friends smile at my fresh paint, a patched and scrubbed counter, a single fixed railing. By contrast, it’s been a decade since anyone walked into my California house and said, “Wow, this place looks so much better.”
I’m learning new things, having fun, and spending my hard-saved investment dollars on myself and others while I’m still around to enjoy the effects. This is my new self and a different life. I’ve uncovered an inner home engineer, and she turns out to be a spender.
I’m not that man in the cliché, however. Next time that I’m back in California, at the big old reliable house with her good bones, I promise to measure for a new refrigerator.
Catherine Horiuchi is retired from the University of San Francisco’s School of Management, where she was an associate professor teaching graduate courses in public policy, public finance and government technology. Check out Catherine’s earlier articles.
The post Household Affairs appeared first on HumbleDollar.
Do you need help with a legal issue affecting a large group of people?
A class action lawsuit lawyer can guide you through the complex process of seeking justice. These cases can be challenging, but the right lawyer makes all the difference.
From understanding your rights to building a strong case, they handle the hard work for you. But how do you find the right one and know what to expect?
This guide will explain everything you need to know about hiring a class action lawyer. Ready to take the first step toward justice? Let’s get started!
Confirm Your Case Qualifies
To hire the right lawyer for class action lawsuit cases, you must confirm your case qualifies. A class action lawsuit involves a group of people with the same legal issue. This could be about faulty products, data breaches, or unfair practices. Your case must show common harm or damages across the group.
A lawyer for class action lawsuit cases can review the details to see if they fit the criteria. They will also check if the group is large enough to proceed.
Search for Experienced Lawyers
Finding the right lawyer class action expert is important for your case. Start by searching for lawyers who focus on class action lawsuits. Look for their experience in handling similar cases. Check their track record to see if they have won cases like yours. Reviews and referrals can help you find trusted options.
A skilled lawyer class action professional knows how to handle complex group lawsuits. Choosing an experienced lawyer will give your case a better chance of success.
Check Credentials and Reviews
Before you hire an employment lawyer in LA, check their credentials. Make sure they are licensed and specialize in class action cases. Look at their education and legal background to confirm their expertise. Reviews from past clients can show how well they handle cases. Positive reviews mean they are reliable and skilled.
You can also ask for references to learn more about their success. Checking credentials and reviews helps you pick the best lawyer for your needs.
Schedule Initial Consultations
Scheduling an initial consultation is a key step when hiring a class action lawyer. This meeting helps you understand how the lawyer works. You can explain your case and see if the lawyer is a good fit. Many lawyers offer free consultations, so take advantage of this.
During the meeting, ask about their experience with similar cases. It’s also a chance to discuss fees and how they charge. This will help you make an informed decision before hiring a lawyer.
Evaluate Communication Skills
Clear communication is essential when working with a class action lawyer. They should explain legal terms and processes in simple language. A good lawyer will respond promptly to your questions.
Pay attention to how well they listen to your concerns. Frequent updates on the case’s progress show their commitment. Poor communication can lead to misunderstandings or missed deadlines. Choose a lawyer who makes you feel confident and informed.
Learn More About Hiring a Class Action Lawyer
In conclusion, hiring a class action lawyer is an important step for anyone facing a legal issue that affects a group. A skilled class action lawyer can guide you through the process and help you get the justice you deserve.
Make sure to choose a lawyer with the right experience and a good track record. They will work hard to represent your best interests and lead your case to success.
Looking for more tips and ideas? We’ve got you covered. Check out some of our other posts now.
Earlier this year, I set an ambitious goal to read 1000 books—something I expect will take me many years. My fall reading update covers what I read from July 27 to October 31, and a peek at what’s next on my reading list.
The post Fall reading update – The road to 1000 books appeared first on Boomer Eco Crusader.
Once you’ve reached retirement age, your free time is yours to do as you wish. You can spend your days doing things around the house, going on day trips and vacations, or spending quality time with family and friends. You might invest more time in hobbies and other interests. Sometimes, your hobbies, like the ones … Read more
Sustainable investing is gaining popularity, but it comes with its own set of risks. You might worry about greenwashing or lower returns. Don’t let these concerns stop you from positively impacting your money. You can reduce risks in sustainable investing by doing thorough research and diversifying your portfolio. To start, look closely at companies’ ESG […]
MY LIFE’S GOAL WAS to make money. I make no apologies for this. I’m not particularly gifted in this pursuit, but I did persevere.
I take satisfaction that I stuck to my goal despite all obstacles. There were many trips, falls, mistakes and failures along the way. I had to work hard and seek a new job each time my old employment ended. I set out to do something—and I did it.
That all changed when I retired. It felt like crossing the finish line at the New York City Marathon. I’d completed my career race at last. It was a good feeling. Knowing that someday I’d reach that finish line was a vital part of my motivation.
The satisfaction now is to look back on my journey and see what I accomplished. I fought the good fight. I’m proud of never giving up. But now, I move on to other goals, the ones that I still have time for. We are all given one lifetime. The longest will be about 100 years.
Using 100 as a measuring stick, where are you on your 100-year timeline—and what’s next? What would you do today if you had just one week to live? I hope you’d feel fulfilled, that you’ve done what you wanted to do all along. The goals you pursued might not be what your friends and family thought you should do. Still, if you did what you wanted, you should have no regrets.
If this isn’t true for you, I’d advise you to get going. What do you think you should be doing? The more you do things of your own choosing, the better you’ll feel. Retirement is a perfect time to think selfishly. Doing one selfish thing, while you do 10 things for others, will motivate you to keep going.
Remember, you’re trying to live the rest of your life with zero regrets—to be on your deathbed and think, “I had a good life.” Life is a gift. When you receive a gift, the giver would love to see your appreciation. The way to show that appreciation is to enjoy each day. If you use the day for a guilty pleasure, good for you. The idea is to use the day for what would make you happy.
This might make others happy too—or perhaps not. To be sure, you need goals that won’t disrupt your home life. Breaking your marriage vows or the law might not be a smart move. I hope you’re thinking of goals like skydiving, pursuing hobbies, or visiting places you’ve been pondering for a long time. Let the urgency of a limited lifetime motivate you to accomplish your ambitions.
Maybe you’ll be lucky and have 100 years to work with. Think of all the things you could accomplish. The opportunities are endless. But also remember the expression “time’s a-wasting” applies to us all. We don’t have an unlimited supply of years.
Spread the Wisdom
WHEN THEY ENTER retirement, many folks seem to lose their sense of purpose, especially men who’ve held the traditional role of breadwinner and provider. Once that aspect of their life ends, guys often start to question their purpose.
Our life’s meaning is based on who we are. Some of us are brilliant thinkers. Others are great friends to many. Yet others offer inspiration to the younger generation based on their careers as public servants. We all have a unique combination of gifts. To find meaning, we should apply those gifts in whatever way they can be best used.
That brings me to everybody who reads, writes for and comments on HumbleDollar. Is the subject of money and investing easy for you to understand? Are you comfortable discussing finance with others? Within your social circle, you’re probably the finance whiz, even if you don’t think of yourself that way.
We can use this money sense to provide meaning to the lives of others—by teaching those who are less financially savvy at handling money.
We all know people who are terrible with money. Some tune out as soon as they hear phrases like cost basis or capital gains. Others never acquire the savings habit. Many spend far too freely.
For those who are comfortable with money, advising others on their financial challenges can provide a life’s purpose. To put your gift to work, start by finding your tribe. Join with others who share your interest in spreading financial literacy.
Some people think finance is selfish. I was once told, “The love of money is a sin.” That’s not true. Money is a tool. A hammer in the hands of a skilled carpenter is a thing of beauty.
If your gift is developing friendships, people will praise you for having many friends. Why should the gift of handling money intelligently be viewed any different? Don’t hide your light under a bushel. Embrace your gift and pass it on.
My Retirement Purpose
GEORGE BURNS, one half of the legendary comedy duo Burns and Allen, had a secret to a long and fulfilling life. “Always have a reason to get up in the morning,” he said.
That reason doesn’t have to be world peace or saving starving children. It just needs to be something that’s important to you.
Retirement experts often advise that we find a grand purpose—an encore career or running the board at a local nonprofit. But what if “purpose” sounds intimidating? What if simply picking up trash with your son on a daily walk becomes your reason to rise and shine?
Collecting trash may sound mundane. The act takes on greater meaning, though, when viewed through the lens of environmentalism. On our walks, my son and I focus on aluminum cans, those 100% recyclable wonders. Every one we pick up means one less can in a landfill. It may be a small contribution, but it’s ours.
My son, driven by an innate desire to clean, leads the way. He’ll crawl under bushes and climb hills to retrieve discarded items. The reward he gets is the shout-outs from people walking past or the horn toots when cars drive by. His autism prevents him from acknowledging these positive encounters, but he hears them and it makes him smile.
My son loves to collect trash and recyclables wherever they are. My job is to find honey pot locations with lots of trash. These are usually near industrial sites or close to highways, those in between places where people apparently feel free to throw bottles and cans out the car window.
Litterers may be bad actors, but we don’t care who littered or why. Removing the burden of judgment makes picking up the trash easier. The beauty of our activity is its simplicity. Our only expense is the cost of an occasional replacement grabber for my son. That’s a far cry from the extravagant expenses of, say, a golf-centered retirement.
What started as my son’s fascination with trash has become a shared obsession—a commitment to leaving these neglected areas cleaner than we found them. It’s a niche with no competition, and the satisfaction we gain is immeasurable.
Is my purpose to save the environment or simply make my son happy? Perhaps both, which is a win-win in my book.
I now understand George Burns’s wisdom. He booked a gig at the London Palladium for his 100th birthday, underlining his reason to get up each morning. He did live a century and seven weeks more but, in the end, was too unwell to perform on his 100th birthday. Still, his advice resonates: Find your purpose, big or small, so you find joy in each new day.
David Gartland was born and raised on Long Island, New York, and has lived in central New Jersey since 1987. He earned a bachelor’s degree in math from the State University of New York at Cortland and holds various professional insurance designations. Dave’s property and casualty insurance career with different companies lasted 42 years. He’s been married 36 years, and has a son with special needs. Dave has identified three areas of interest that he focuses on to enjoy retirement: exploring, learning and accomplishing. Pursuing any one of these leads to contentment. Check out Dave’s earlier articles.
The post Time’s A-Wasting appeared first on HumbleDollar.
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