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How To Pay Off Credit Card Debt Faster
The post How To Pay Off Credit Card Debt Faster appeared first on Penny Pinchin' Mom.
According to NerdWallet, the average credit card debt for the American Family is nearly $16,000. Â That is a considerable amount, and the monthly financial burdens can quickly become overwhelming
You may feel as if there is no light at the end of the tunnel as you see no end in site. How in the world did I let this happen and what can I do about it now?
You certainly do not want to be like me and go down the path of bankruptcy. Don’t do that.
Instead, you simply need to know where to turn for in order to get the help you need to pay off your credit card debt as quickly as possible.
The truth is that you may not even realize how much debt you have or where to begin. Let’s tackle your debt by helping you figure out the simplest way to get rid of your credit card debt as fast as possible.
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HOW TO QUICKLY PAY OFF CREDIT CARDS
The first thing you have to do is take responsibility for it.  Whether your debt is a result of severe financial times or frivolous spending, it doesn’t matter. But, before you even think about getting out from beneath your credit card debt, you need to be ready to make it happen. That means you have to be willing to put in the hard work and make the lifestyle changes necessary to achieve your goals.
Once you do that, you are ready to take steps to pay it off.
1. Transfer your balances to zero or lower balance cards
When you have a lot of credit card debt, you will want to try to lower the amount of interest you pay. Since that compounds every month, it can mean your $50 payment will only reduce the debt by $10.
Take some time to do some research to find zero interest rate transfer cards or those with a low introductory rate. Â If you can drop your interest payments, that will allow you to focus on paying off your credit card debts.
By consolidating your credit card debt onto one or two cards, you may find you save a significant amount of money in interest while working to pay off the balances.
2. Use your house
When mortgage rates are low, it might make sense to refinance your home. Doing so may allow you take out a loan large enough to cover the balance you owe on your home plus your total credit card debt, without increasing your monthly payment.
If you can borrow more money, you can use that additional amount to pay off your credit card debt. Then, all of your debt will be in one monthly payment – your mortgage.
Or, if you would rather not refinance, consider taking out a home equity loan. Use what you’ve paid towards your home to pay off your credit cards. The interest rate is often lower what your credit card company charges.
3. Use a personal loan to pay off credit card debt
If you do not own a home, talk to your bank about a personal loan (secured or unsecured). Just like a home equity loan, you can pay off your balances and have a single monthly payment, often at a lower rate than credit card companies charge.
4. Get rid of your cards
If you are committed to paying off your credit card balances cut them up. That way, you will not be tempted to add more debt to your balance. However, what you should not do is close the account. Keep it open and continue to pay on it to help increase your credit score.
For some people, cutting them is just not an option. If you find this is you, then you need to put your cards on ice. Literally. Put the card in a baggie filled with water and drop it into your freezer.  Now,  you won’t be tempted to dig it out and use it as you would have to put in a LOT of effort to do so.
Do what you have to do to stop spending. There is no way around this. Until you are ready to change your attitude towards spending money, you will not be able to get out of debt. This starts by cutting off the spending. Period.
Read more: Â How to Break the Cycle of Credit Card Debt
5. Know how much you owe
Sadly, most people have no idea how much credit card debt they have accrued. You have to know how much you owe before you can implement a plan to pay it off.
Make a list of the current balances owed, minimum monthly payment and the interest rate. Then add up total the amount of debt you have AND the total minimum monthly payments. Â This gives you a better picture of the amount of debt you currently have outstanding (and, it may not be pretty to look at).
The debt payoff bundle gives you every form you need to track, monitor and pay off your debt once and for all!!
6. Find money
Once you know how much debt you have to pay off, take a second look at your budget. Find places where you can cut back to have more money to pay your debt. That may mean scaling back or eliminating dinner out for a while, so you have another $100 to use towards your credit card balances.
Think about making some short-term sacrifices for long-term gain. You will not need to scale back forever. Once you are out of debt you may even find you don’t miss those items you cut out of the budget!
7. Start paying them down — One at a time
There are two different rules of thinking when it comes to paying off credit card debts.  One says pay the higher interest rate, and the other says the highest balance. You can read more about those below.
No matter which method you decide to use, start with ONE debt and work on it first. Get it paid in full before you try to pay others.
You can use a debt payoff calculator to find out long it will take to pay off your credit cards and know how much you’ll save in interest along the way.
8. Consider debt consolidation
Sometimes, the best way out of debt is to consolidate them all into a single payment. You may find that you ultimately pay less over the life of the loan vs. what you would pay in interest on each card alone.
While credit card transfers are an option (as mentioned above) you may also want to try debt management or a consolidation program. These include counselors who may be able to negotiate (on your behalf) to reduce the rates or payment terms.
Rather than make the individual payments on each debt, you make a single payment each month to the agency. They then transfer the payment to the creditor on your behalf.
If you do not own a home or are unable to qualify for a credit card or personal loan then debt consolidation may be the answer.
HOW DO YOU PAY DOWN YOUR CREDIT CARD BALANCES
If you do not opt for one of the options above and instead want to tackle your balances on your own, there are two methods you can use.
Highest Interest Rate First (Avalanche Method)
The avalanche method of debt repayment starts by first tackling the debt with the highest interest rate. You will want to pay as much as you can towards this debt first, continuing with minimum payments on all other debts.
For example, if the minimum monthly balance is $25, try to double, if not triple, the payment. Combine this amount with any additional income freed up in your budget to pay towards your debt. Your focus should be only on this single debt until it is paid off. Continue making the minimum required payments on your other credit card balances.
Once your first card is paid off, roll the monthly payment you were making on that card onto the next card. So, if you were paying $150 on card one and $30 on card two each month, you will now pay $180 towards the balance of your credit card. Continue to do this until all of you are debt free.
Using this method results in paying less interest, therefore, less overall debt. Â As you tackle the one that accrues interest at a higher rate first, you will eventually pay out less to the company. Â The downside is that you may end up tackling an overall higher balance first, which can result in it taking longer to make progress, and you becoming discouraged.
Lowest Balance First (Snowball Method)
The snowball method does not take interest rate into account, but rather balances. Review your list of debts and find the one that has the lowest balance. This is the one you will focus on first.
You will follow the same rule as you would if you were paying down the higher interest rate card first. Â Find any additional money you can in your budget and add that to the minimum monthly payment of the lowest balance card. Â Continue paying on that card until it is paid in full. Â Once that happens, roll that payment into the next balance. Â Repeat this process until all debts are paid off.
The reason that this works is that it tends to be more encouraging. Â You will see that you are actually making progress as you can achieve a balance paid in full more quickly, which gives you the motivation to proceed. Â The downside of this method is that you may have to pay a bit more in overall debt due to additional interest on the cards.
The thing is that one of these is not “right or wrong.” I hate when I see so-called experts trying to degrade someone for trying one over the other. Â We are all different and we know what will motivate us to help us stay on track. Â Decide which of these two works best for you.
8. Use Windfalls
While you are working yourself out from beneath your mountain of debt, there may be times when extra money finds its way to you. You may get a raise or a bonus at work. This may be the year you qualify for a tax refund. When you get extra money of any amount, do not use it as you want. Instead, apply it towards your debt.
If you want to tackle this as quickly as possible, you may need to sell things you do not need or even get a second job. There are many ways you can make money at home, many of which will not interfere with your regular full-time job.
STAYING OUT OF CREDIT CARD DEBT
Once your credit card debt is paid in full, you never want to allow yourself to get into that situation again. Â Here are things you need to do:
1. Figure out why you got there in the first place
Was the reason you had debt due to poor saving? Are you a spender? Did you just not have a budget and had to use it to cover living expenses?
Whatever the reason, you need to make sure you know what lead you down that path, to begin with, and make changes in your life so that it doesn’t happen again.
2. Have an emergency fund
Many times, people turn to credit cards when they have an unexpected expense. This is where your emergency fund will come into play. Instead of turning to a credit card to bail you out, you will use your emergency fund balance instead.
Read more: Â How to Rapidly Build an Emergency Fund
3. Never charge more than you have in the bank
Far to often, people will charge in advance of a paycheck or other income source they plan on coming their way. Â But, what happens if that fails to come through? Â Can they pay off the balance?
If you can not pay off your balance with the money in your checking or savings account, then do not charge it. Â Just because you are owed money does not mean it will come through.
4. Always pay balances in full every month
It can be tempting not to pay off your card and keep more of the money for yourself. Â However, this will just put you back into the same situation you just got out from. Â Make sure your entire balance is paid off every single month. Â No exceptions.
5. Review the perks
Many people use credit cards because of the perks. These include cash back, free offers or even airline miles. Â However, what do you have to spend to earn the reward? Is it worth racking up a hefty balance just to get something free?
Companies can change their programs at any time. Â You could lose those you’ve earned or no longer be eligible to earn new ones. Â The perks may sound great, but are they really worth it?
Trying to pay off credit card debt is not easy. However, can you continue to live with the financial strain they are causing you? Only you can decide that it is the right time to pay off credit card debt.
The post How To Pay Off Credit Card Debt Faster appeared first on Penny Pinchin' Mom.
Source: pennypinchinmom.com
How to Escape Debt in 2016
The new year is right around the corner and if youâre like most people, youâve probably got a running list of resolutions to achieve and milestones to reach. If getting out of debt ranks near the top, nowâs the time to starting thinking about how youâre going to hit your goal. Developing a clear-cut action plan can get you that much closer to debt-free status in 2016.
1. Add up Your Debt
You canât start attacking your debt until you know exactly how much you owe. The first step to paying down your debt is sitting down with all of your statements and adding up every penny thatâs still outstanding. Once you know how deep in debt you are, you can move on to the next step.
2. Review Your Budget
A budget is a plan that sets limits on how you spend your money. If you donât have one, itâs a good idea to put a budget together as soon as possible. If you do have a budget, you can go over it line by line to find costs you can cut out. By eliminating fees and unnecessary expenses like cable subscriptions, youâll be able to use the money you save to pay off your debt.
3. Set Your Goals
At this point in the process, you should have two numbers: the total amount of money you owe and the amount you can put toward your debt payments each month. Using those two figures, you should be able determine how long itâs going to take you to pay off your mortgage, student loans, personal loans and credit card debt.
Letâs say you owe your credit card issuer $25,000. If you have $500 in your budget that you can use to pay off that debt each month, youâll be able to knock $6,000 off your card balance in a year. Keep in mind, however, that youâll still need to factor in interest to get an accurate idea of how the balance will shrink from one year to the next.
4. Lower Your Interest Rates
Interest is a major obstacle when youâre trying to get out of debt. If you want to speed up the payment process, you can look for ways to shave down your rates. If you have high-interest credit card debt, for instance, transferring the balances to a card with a 0% promotional period can save you some money and reduce the amount of time itâll take to get rid of your debt.
Refinancing might be worth considering if you have student loans, car loans or a mortgage. Just remember that completing a balance transfer or refinancing your debt isnât necessarily free. Credit card companies typically charge a 3% fee for balance transfers and if youâre taking out a refinance loan, you might be on the hook for origination fees and other closing costs.
5. Increase Your Income
Keeping a tight rein on your budget can go a long way. But thatâs not the only way to escape debt. Pumping up your paycheck in the new year can also help you pay off your loans and increase your disposable income.
Asking your boss for a raise will directly increase your earnings, but thereâs no guarantee that your supervisor will agree to your request. If youâre paid by the hour, you can always take on more hours at your current job. And if all else fails, you can start a side gig to bring in more money.
Hold Yourself Accountable
Having a plan to get out of debt in the new year wonât get you very far if youâre not 100% committed. Checking your progress regularly is a must, as is reviewing your budget and goals to make sure youâre staying on track.
Photo credit: ©iStock.com/BsWei, ©iStock.com/marekuliasz, ©iStock.com/DragonImages
The post How to Escape Debt in 2016 appeared first on SmartAsset Blog.
Source: smartasset.com
How To Balance Working And Going To College
More and more are choosing to attend college and work at the same time.
Whether you are working a part-time or a full-time job, it can be tough to balance both. There are many working students in college who are able to manage both, but there are also many who aren’t able to.
If you don’t balance them both correctly, it may lead to stress, lower grades, low-quality work being produced, and more.
No one wants that and I’m sure you don’t either.
Related: 21 Ways You Can Learn How To Save Money In College
This is supposed to be the time of your life where you are growing and changing, not feeling like you are drowning in everything that is going on around you.
There are ways to get around it and manage both successfully at the same time, though.
I took a full course load each and every semester, worked full-time, and took part in extracurricular activities. It was definitely hard and I won’t lie about that. However, sometimes a person doesn’t have a choice and has to do everything at once or maybe you are choosing to multi-task and you are wanting to better manage your time.
Related post: How I Graduated From College In 2.5 Years With 2 Degrees AND Saved $37,500
Whatever your reason may be, below are my tips for working college students. The tips below are what helped save me!
Carefully plan your class and work schedule.
My first tip for working college students is to carefully plan your class and work schedule.
Some students just choose whatever classes are offered. However, it is much wiser to carefully craft your school and work schedule so that everything flows together efficiently with minimal time wasted.
You can do this by researching into what classes are offered when and trying to eliminate any gap that may be in-between each class. Having an hour or two break between each class can quickly add up. Also, if you happen to have time off between classes, then using this time to do your homework and/or study can be a great use of time as well.
Related post: How I’m a Work-Life Balancing Master
Eliminate any time that may be wasted.
There are many time sucks that you may encounter each day. A minute here and a minute there may add up to a few hours wasted each day.
The time you save could be used towards earning more money at your job, studying, socializing, or whatever else it is that you need or want to do. For working college students, every minute is important.
There are many ways to eliminate any time wasters including:
- Cut down on your commute time. If you can find a job near your college campus then you can eliminate a lot of traveling time.
- Prep your meals ahead of time. If you can bulk make your meals instead of individually making each one, you will be able to save a lot of time.
- Be aware of how much time you spend on social media and TV. The average person wastes many, many hours on social media and watching TV. Cutting back on this may save you hours each day without you even realizing it.
Related post: 75 Ways To Make Extra Money
Separate yourself from distractions.
Working college students experience a lot of distractions.
Noise in the background, such as with a TV that is on or a party your roommate may be throwing, can distract you from what you need to be doing. If you are trying to study or do homework then you should try to find a quiet place to get work done.
You may want to close your bedroom door, hide the remote from yourself (trust me, this works!), go to the library, or something else.
Related: 16 Best Online Jobs For College Students
Have a to-do list and a set schedule.
Having a to-do list is extremely helpful for working students in college because you will know exactly what has to be done and by when. You will then have your responsibilities sitting there right in your face so that you will have to face reality.
Plus, I know that when I am stressed it can be easy to forget things, so having a to-do list eliminates any valuable minutes I may waste debating about whether I forgot to do something.
Working students in college need to be realistic.
While one person may be able to work like crazy and attend college at the same time, not everyone can do that.
If your grades are dropping, then you may want to analyze whether you should drop your hours at work or school. What is more important to you at this time and for your future?
With the tips above for working students in college, you’ll be able to rock both your job and your college classes at the same time. Don’t forget to fit in time for fun as well. Good luck!
Are you one of the many working college students out there? Why or why not?
The post How To Balance Working And Going To College appeared first on Making Sense Of Cents.
Source: makingsenseofcents.com
How to Prepare for the End of Your Unemployment Benefits
Before the coronavirus reached the U.S., unemployment was low and few could have anticipated a global pandemic. However, as the pandemic and ensuing recession took hold, a record-breaking number of people filed for unemployment benefits to stay financially afloat.
âCOVID-19 led to an incredible number of American workers being without work,â says Julia Simon-Mishel, an unemployment compensation attorney. âAnd itâs caused a huge need for individuals to file for unemployment insurance.â
Unemployment insurance, or unemployment benefits, can offer an essential lifeline. But if youâve never accessed these benefits before, you may have questions about how they work. You might also be asking: What do I do when my unemployment benefits run out and Iâm still unemployed?
This article1 offers tips about what you need to know about filing an unemployment claim. It also addresses the following questions:
- How do you prepare for the end of unemployment benefits?
- Can your unemployment benefits be extended?
- What can you do when unemployment runs out?
- Can you refile for unemployment after it runs out?
If youâre just getting ready to file or need a refresher on the basics of unemployment benefits, read on to have your questions answered.
If youâre already collecting benefits and want to know what happens once you reach the end of the benefit period, skip ahead to âSteps to take before your unemployment benefits run out.â
Common questions about unemployment benefits
Experiencing a job loss is challenging no matter what. Keep in mind that youâre not alone, and remember that unemployment benefits were created to help you.
While theyâre designed to provide financial relief, unemployment benefits are not always easy to navigate. Hereâs what you need to know to understand how unemployment benefits work:
What are unemployment benefits?
Unemployment insurance provides people who have lost their job with temporary income while they search for and land another job. The amount provided and time period the benefits last may vary by state. Generally, most states offer up to half of a personâs previous wages in unemployment benefits for 26 weeks or until you land another full-time job, whichever comes first. Requirements and eligibility may vary, so be sure to check your stateâs unemployment agency for guidance.
How do you apply for unemployment benefits?
Depending on where you live, claims may be filed in person, by phone or online. Check your state governmentâs website for details.
Who can file an unemployment claim?
This also may vary from state to state, but eligibility typically requires that you lost your job or were furloughed through no fault of your own, in addition to meeting work and wage requirements. During the coronavirus pandemic, the government loosened restrictions, extending unemployment benefits to gig workers and the self-employed.
When should you apply for unemployment benefits?
Short answer: As soon as possible after you lose your job. âIf you are someone who has had steady W2 work, itâs important that you file for unemployment the moment you lose work,â Simon-Mishel says. The longer you wait to file, the longer youâre likely to wait to get paid.
When do you receive unemployment benefits?
Generally, if you are eligible, you can expect to receive your first benefit check two to three weeks after you file your claim. Of course, this may differ based on your state or if thereâs a surge of people filing claims.
2020 enhancements to unemployment benefits for freelance and contract workers
In early 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. In addition to other benefits, the CARES Act created a new program called Pandemic Unemployment Assistance. This program provides unemployment benefits to independent contractors and other workers who were typically ineligible. That means that if you donât have steady W2 incomeâfor instance, freelance and contract workers, those who file 1099s, farmers and the self-employedâyou still may qualify for unemployment benefits.
âThat program is a retroactive payout,â Simon-Mishel says. âIf youâre just finding out about that program several months after losing your job, you should be able to file and get benefits going back to when you lost work.â
Because legislation affecting unemployment benefits continues to evolve, itâs important that you keep an eye out for any additional stimulus programs that can extend unemployment benefits. Be sure to regularly check your stateâs unemployment insurance program page for updates.
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“Itâs really important to keep on top of all the information out there right now and be aware of what benefits are available to you.”
Steps to take before your unemployment benefits run out
In a perfect world, your job leads would become offers long before you reached the end of your unemployment benefits. But in reality, thatâs not always the case.
If youâre still unemployed but havenât yet exhausted your benefits and extensions, you may want to prepare for the end of your unemployment benefits as early as possible so you donât become financially overwhelmed. Here are four tips to help you get through this time:
Talk to service providers
Reaching out to your utility service providers like your gas, electric or water company is one of the first steps John Schmoll, creator of personal finance blog Frugal Rules, suggests taking if youâre preparing for the end of unemployment benefits.
âA lot of times, either out of shame or just not knowing, people donât contact service providers and let them know what their situation is,â Schmoll says. â[Contact them to] see what programs they have in place to help you reduce your spending, and basically save as much of that as possible to help stretch your budget even further.â
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Save what you can
To help prepare for the end of your unemployment benefits, a few months before your benefits end, Schmoll suggests cutting back spending as much as possible, focusing only on necessities.
âIf you can try and save something out of the benefits that youâre receiving while youâre receiving themâit doesnât matter if itâs $10 or $20âthatâs going to help provide some cushion,â Schmoll says. Keep those funds in a separate account if you can, so youâre not tempted to spend them. That way youâre more prepared in case of an emergency.
If you hunkered down during your period of unemployment and were able to save, try to resist the urge to splurge on things that arenât necessary.
âThere might be temptation to overspend, but curtail that and focus on true necessities,â Schmoll says. âThat way when [or if] you receive an extension on your benefits, you now have that extra money saved.â
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Seek additional financial aid
If you find that your savings and benefits arenât covering your expenses, and youâre reaching a point where you no longer qualify for benefits, look into other new benefit programs or features designed to help during times of crisis.
For example, there are programs across the country to assist people with rent or mortgages, Simon-Mishel says. Those programs are generally designed to keep those facing financial hardship from losing their home or apartment. You may need to show that you are within the programsâ income limits to qualify, or demonstrate that your rent is more than 30 percent of your income. These programs vary widely at the state and even city level, so check your local government website to see what might be available to you.
As you prepare for the end of your unemployment benefits, explore which government benefits or government agency may be best suited for your needs.
Keep up with the news
During economic downturns, government programs and funds often change to keep up with evolving demand.
âItâs really important to keep on top of all the information out there right now and be aware of what benefits are available to you,â says Simon-Mishel. âYou should closely pay attention to the social media of your state unemployment agency and local news about other extension programs that might be added and that you might be eligible for.â
Options for extending your unemployment benefits
If youâre currently receiving benefits, but theyâll be ending soon, youâre likely wondering what to do when your unemployment runs out and asking if your unemployment benefits can be extended. Start by confirming when you first filed your claim because that will determine your benefit end date.
If youâre wondering, âCan you refile for unemployment after it runs out?â the answer is yes, but youâll have to wait until your current âbenefit yearâ expires. Note that a benefit year is 12 months from when you file a claim. If you filed at the beginning of June, for example, you generally can’t file again until the beginning of the following June.
You may get 26 weeks of unemployment benefits, depending on your stateâs rules at the time. Most states extended the payout period to 39 weeks in the wake of the COVID-19 crisis. Check your stateâs website for the particulars on what to do when your unemployment runs out.
If your claim is still active but youâll be in need of additional financial relief after your unemployment benefits run out, here are your options:
File for an unemployment extension
During extraordinary economic times, such as the coronavirus pandemic, the federal government may use legislation like the CARES Act to offer people more benefits for a longer period of time, helping many people concerned about whether unemployment benefits can be extended.
For example, in 2020, for most workers who exhaust, or receive all of, their unemployment benefits, a 13-week extension should automatically kick in, Simon-Mishel says. This would bring you up to 39 weeks total. However, if more than a year has passed since you originally filed and you need the extension, you will likely need to file a short application provided by the government. Details vary by state.
As youâre determining what to do when your unemployment runs out, reach out to your unemployment office. Itâs important to do this before your benefits expire so you can avoid a missed payment. You can also confirm youâre eligible and that you can refile for unemployment after it runs out.
Ask about the Extended Benefits program in your state
Can unemployment benefits be extended beyond that? In periods of high unemployment, you may qualify for a second extension, depending on your state.
âAfter those [first] 13 weeks, many states have added a new program called Extended Benefits that can provide another 13 to 20 weeks of unemployment when a state is experiencing high unemployment,â Simon-Mishel adds. This means you may be able to receive a total of up to 59 weeks of unemployment benefits, including extensions. The total number of weeks of unemployment you may receive varies based on your state and the economic climate.
Itâs hard enough keeping up with everything as you prepare for the end of unemployment benefits, so donât worry if you donât have your stateâs benefits program memorized. Visit your stateâs unemployment insurance program page to learn more about what benefits are available to you.
Beyond unemployment benefits
While life and your finances may seem rocky now, know that youâre not alone. Remember that there are resources available to help support you, and try to take things one day at a time, Schmoll says.
âRealize that at some point your current situation will improve.â
If you find that your benefits arenât covering all of your expenses, now may be the time to dip into your cash reserve. Explore these tips to determine when itâs time to use your emergency fund.
1 This article is not legal advice and should not be construed as such. Eligibility for unemployment benefits may be impacted by variations in state programs, changes in programs, and your circumstances. If you have questions, you should consider consulting with your legal counsel, at your expense, or seek free assistance from your local legal aid organization.
Articles may contain information from third-parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.
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Source: discover.com
How to Still Pay Your Bills During a Layoff or When You Miss A Check
The post How to Still Pay Your Bills During a Layoff or When You Miss A Check appeared first on Penny Pinchin' Mom.
More than 800,000 Americans are currently affected by the government shut down. And, while it would make sense to force our congressmen and senators to also not get paid during that time, it just won’t happen.
Even though you may not be working and getting a paycheck, it doesn’t mean the bills stop. You still need to feed your family and take care of yourself.
The truth is that a layoff or furlough can happen to anyone at any time. And, if you already struggle to live paycheck to paycheck, not getting paid will certainly increase your stress level.
WHAT DO DO IF YOU MISS A PAYCHECK
First off, if you aren’t getting paid, you need to take a deep breath. I know it is stressful and you are struggling, but it is all going to be OK.
Your first instinct may be to go take out a second mortgage or unsecured loan. You might be tempted to get some additional credit cards. And, that retirement account may be calling your name.
Don’t do that.
All you are doing is adding more stress by increasing your debt or tax liability. Then, when you do start having paychecks again, you end up with more bills to pay.
It may be a short term fix, with long-term consequences. Just don’t do it.
Go ahead and have a good cry. Then, wipe your tears and create a plan.
1. MAKE SURE YOU HAVE A BUDGET
If you don’t have a budget, there is no time like the present to make one. A budget is not going to restrict you from spending money. In fact, it is the opposite.
Your budget shows you where you spend your money. And, more importantly, where you might be able to cut back. It could mean stopping your gym membership and not dining out. It could even mean canceling your cable service.
A traditional budget will show the income you bring in. But, if you don’t have any regular paychecks, how do you do this? You make your budget with the money you do have.
Don’t include the amount you normally make, but rather, just the amount currently coming in. If there is no money at all, then create your budget with the money you have on hand. You need to get everything out of every penny you make.
Your budget is crucial to surviving a layoff, furlough or government shut down.
2. COVER YOUR NEEDS
If you look at your budget, there are wants and needs. A want is cable. A need is housing. When there is no money coming in (or less than usual), you must cover your needs.  This means making sure you pay for:
Housing
Food
Clothing
Transportation
Look at your budget and cover these expenses first. Don’t pay your cable bill if you can’t put food on the table. Cable is not important right now, but you must feed your family.
Once you cover your basic needs pay other bills in order of importance. Don’t worry about the credit card bills right now – but pay your utilities.
You can’t pay everyone. There is no getting around that. Pay those you need to in order to protect your family.
3. SELL THINGS
A simple way to generate some quick cash is to find things you do not need and sell them. The added bonus is that you get a chance to clean out the basement or the garage.
Use sites such as LetGo or Craigslist to sell big items. If you have clothing check out ThredUp or Poshmark. There is always someone who needs something.
4. STOP PAYING OFF DEBT
If you are in the midst of getting out of debt, you’ll have to stop — for now. Getting out of debt can’t be your priority at this time. You have to make sure you are taking care of your family.
Once your income returns to normal levels, you can pick up your debt snowball right where you left off. And, if that means the balance had to increase in the short term, so be it.
5. CUT BACK
When you struggle financially, it’s time for some big changes. The first thing to do is look at your food bill. See what you can cut from your spending. Do some searches on Pinterest for very cheap family meals that you can make.
You may also want to check out different grocery stores. For example, if you live near an ALDI, make a trip there to shop. You’ll find almost everything you need, at very low prices. You aren’t sacrificing quality. You are just making the most of every dollar you spend.
Take a deep look at your budget and get rid of things such as monthly subscriptions like Hulu, gyms, etc. You can always start these up again when you increase your income. Once your income returns, you get to add these back in. These are temporary cut backs just to help you survive this time.
6. MAKE SOME CALLS
It is important to reach out to all of your providers and lenders to let them know you are part of the government shut down, or in the midst of a layoff. You don’t want to risk getting service shut down due to lack of payment.
While many of them may not be able to make any concessions, they might be able to give you an additional month to pay or not charge a late fee. But, you will never know unless you ask. What’s the worst thing that will happen?
Note that during the winter months, utility companies are not allowed to discontinue services, but they can during other times of the year.
7. GET A SIDE HUSTLE OR TEMPORARY JOB
When there is no money coming in, you’ve got to find a way to change that. It may be time to add a side-hustle. It could mean working fast food or getting a job at Walmart. You just have to find a way to bring in money during this short period of time.
If your layoff or furlough is temporary, you may not be able to get another job. It could be part of the terms of your employment, so it is not an option. That means you need to try a side-hustle. It might mean you are an Uber driver or even tutor kids.
8. ASK FOR HELP
Check your local food pantry or church to ask for help. These organization can provide food and even money to help cover your bills.  You may also have family members who are willing to help by paying for your groceries or covering your electric bill. But, you have to ask.
You have a family to provide for, so you can’t let your pride get in the way of getting them what they need.
WHAT DO WHEN YOU START GETTING PAID AGAIN
Once you are back at work and your income is back to what it was previously, don’t just go back to your spending like before. You don’t want to struggle again should you find yourself in this same situation.
The most important thing to do is to work on building your emergency fund. The idea is to build it up to have at least 3 – 6 months worth of living expenses covered. I know it sounds like a lot. And, it probably is.
You won’t build it up all at once. It will take time. But, you can do things such as sell more items or get a second job. Even if you start saving just $10 a week, you’ll have saved more than $500 in a year.
The post How to Still Pay Your Bills During a Layoff or When You Miss A Check appeared first on Penny Pinchin' Mom.
Source: pennypinchinmom.com
Do College Rankings Matter?
All articles about college rankings should perhaps be read with a grain of salt and primarily through a lens of what matters most to individuals about the college experience and what theyâre hoping it will be an investment toward.
Prominent publications and people have conveyed a variety of views about whether college rankings matter:
The editor-in-chief of the Science Family of Journals said no in May 2020. âTo any logical scientific observer, the fine distinctions of where schools show up on this (U.S. News & World Report Best Colleges) list are statistically meaninglessâbut try telling that to a roomful of alumni or parents,â H. Holden Thorp wrote.
Ian Bogost, distinguished chair at Georgia Tech, wrote in The Atlantic in June 2020: âThe absurdity of a numerical ranking mechanism for colleges becomes apparent the moment you look at how U.S. News calculates it. The methodology reads like a Dungeons and Dragons character sheet: 8% for class size; 10% for high-school-class standing; 4.4% for first-to-second-year student retention, and so on.â
But just because the consensus leans toward ânoâ doesn’t mean it should be the last word on anyoneâs ultimate decision about where to go to school.
Even U.S. News & World Report says on its best-colleges website: âThe rankings provide a good starting point for students trying to compare schools. ⦠The best school for each student, experts say, is one that will most completely meet his or her needs, which go beyond academics.â
What Are the College Rankings?
There is no single, ultimate, etched-in-stone set of college rankings. All over the world, there are entities using a wide array of criteria to appraise universities.
Rather than expecting a âyesâ or ânoâ to the question of whether college rankings matter, it would be more beneficial to understand why “It depends” could be more appropriate.
If you’re aiming for an education from a prestigious school, and money is no objectâwell, first of all, congratulations and good luck.
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How to Plan a Budget If Your Home Is a Fixer Upper
When your home is a fixer-upper, it can be difficult to even know where to start with a renovation. The list can be overwhelming—fix the patio, change out the mustard yellow carpet, buy furniture, paint the house. With a never-ending to-do list, planning a budget can seem virtually impossible.
By sorting through your list of wants and needs and focusing on essentials, you can outline a budget that won’t keep you up at night. Here are some tips on how to plan a budget for turning your fixer-upper into your first dream home.
1. Sort through the “wants” and “needs.”
Where do you even start with a renovation budget? With a limited fixer-upper budget, it’s essential to make functionality the first priority. When the roof is leaking and your fridge is dead, this is where the budget begins. First, determine what infrastructure items require repair or an essential upgrade, as these are typically big-ticket items. Next, focus on beautifying projects that will reap benefits in the long run, like bathrooms and kitchens. Hold off on budgeting fancy appliance upgrades and expensive decor if you already have working items—these can come at a later time after you take care of all the essentials.
2. Consider purchasing used over new.
Give your budget more flexibility by going for used over new with certain big-ticket items. Used appliances, for instance, can be found in great condition from other remodels or homeowners upgrading to the latest technology. Used furniture is also a fantastic way to keep your fixer-upper budget low. Don’t forget—sofas, vintage chairs, tables and more can be easily reupholstered and refinished. They’ll look brand new for just a fraction of the cost.
3. Be ready to DIY with a gift card.
As a first-time buyer, there’s a 99 percent chance you’ll be diving into the realm of DIY. Learning one or many DIY skills will not only come in handy with home repairs in the future, but it’s a fantastic way to keep labor costs low. If you’re worried your DIY supply budget will get out of hand, however, shop with a gift card to your local hardware store. That way, you’ll always be working with a fixed amount of money and won’t be tempted to add on any expensive extras. It’s a guaranteed way to keep your budget in check.
4. Get creative.
Fixer-uppers are great hands-on projects, and creative solutions are key for keeping your budget in line. For items like cabinetry that may be in good condition but out of style, get creative with refinishes to bring new life into your space. Give your kitchen a fresh take by painting cabinets in a modern shade, or reface them for a whole new look without the added cost of all-new cabinetry. Replace hardware on cabinetry, furniture and built-ins to make your pieces feel brand new. Even outdated fireplaces, doors, furniture and windows can go a long way with a fresh coat of paint and new hardware. Consider this cheap alternative to help save room in your budget for the fun stuff.
5. Let the professionals help.
Whether you’re starting with the kitchen or diving into a full-scale remodel, don’t be afraid to seek professional help. No matter what your budget, a professional’s advice can help ensure that your renovation has as few hiccups as possible. City codes, minute details and hidden elements can wreak havoc on projects, so let a master guide you through those hurdles instead of trying to blindly tackle them yourself. Don’t let the potential price tag deter you from investing in having expert guidance—many architects and designers have options for paying an hourly rate. This is a great option, especially for fixer-upper and DIY projects, as it allows your plans to be looked over by professionals without the price tag of a full design scope.
Source: quickanddirtytips.com