Your Debt, Your Job, and the Financial Apocalypse

It’s no secret that your debt and your job are closely connected. Unless you’re one of the lucky few who are totally debt-free, one of the reasons you work is probably so you can pay your debts.

The prosperous and thriving economy that we’ve been enjoying for decades has turned into recession. But if you think things are tough now, how will you make it when times truly become difficult to live in? What do you think will happen if the financial apocalypse hits?

Will your debts still follow you? Probably so. Unless there is total breakdown of all communications and money transfers, your debt will still be a monkey on your back. Regardless of the economy, you’ll still be responsible for paying it.

Will your job still be around so you can pay your debts? Probably not.

So what can you do to resolve this dilemma and better prepare yourself to handle financial chaos? What kind of a plan can you put in place for your money and savings?

Most importantly, what steps can you start taking if your resources are limited?

Following these guidelines will give you an advantage:

1. Start paying down your debt. Absolving yourself from debt will be one of the best things you can do to free yourself from your financial burdens and help you become much less dependent on your job to make ends meet.

* Put your credit cards away. Over 8 million Americans have foregone using credit cards altogether, so why not follow suit? If you rarely use your cards, your payments will make more of an impact.

* Send more than the minimum payments. Even if it’s a small amount, every extra dollar you send will bring down the debt, as opposed to mostly paying interest and related charges.

* Make a plan and follow it. Determine where you can save money from other expenditures and use these savings to pay down your debt. Perhaps you could get into couponing. Maybe you could stay in one night a week instead of going out.

2. Reduce your dependence on your job. There are several things you can do now to alleviate the negative effects of losing your job in an economic meltdown:

* Start developing saving habits now so you can make your money and resources stretch as far as they possibly can when it counts the most.

* Establish more streams of income. What services can you do for others that they’ll pay you for? Can you make items to sell? Perhaps you can pick up items at flea markets and garage sales and then sell them for a profit on Craigslist or EBay.

3. Acquire a healthy collection of gold and silver coins. They’ll be your best bet for ensuring that you’re able to provide for yourself and your family when the dollar devalues, inflation grows rampant, and supplies grow scarce!

Thinking of the financial apocalypse may sound morbid, but having a plan to fall back on in case it happens is smart. Start putting these guidelines into your money plan today to secure a bright financial future for you and your family.

How To Decide Which Debt To Pay Off First

When you’ve made the decision to get out of debt, it can be difficult to choose a course of action. For example, how do you select which debt you’re going to pay off first? Financial experts talk about two smart ways to pay off debt.

First, make a list of your debts with the interest rates charged by each company and the balances you owe. With this information in hand, you can make an informed decision of which option will work best for you.

Option 1: Pay off the smallest balance first

  • Begin with paying off the credit card having the smallest balance. Then, move on to the next smallest balance and pay it off and so on.
  • Why the one with the smallest balance? Because you can more quickly rid yourself of paying the monthly finance charges associated with carrying a balance on that debt. Plus, you’ll have one less debt to pay in a shorter amount of time if you start with the smallest debt.
  • Consider this, if you start with the debt having the highest balance, it will take much longer to pay off and you’ll still be paying monthly fees for all your cards/loans for however long it takes.
  • Why not knock out the smaller debts to actually save a bundle quicker each time you pay off a debt? That money can then be applied monthly toward the next debt you plan to pay off.

Option 2: Start with the debt with the highest interest rate

  • Using your list, determine which debt has the highest interest rate and fees.
  • Once you have this information, pay off first that debt with the highest rates.
  • After you pay off the first debt, move on to the next creditor on the list that charges the next highest interest rate and pay it off. Continue in this manner until all your charge cards and loan balances are paid off.

Regardless of which method you use, doesn’t it feel great to draw a line through a debt on your list as you pay off each account?

Enhanced by Zemanta

Paying Off Debt in the New Year

Having debt is like carrying a huge boulder on your shoulders. Each time you finance another purchase or swipe your credit card, you’re adding weight to that boulder.

Let this year be the year of removing that boulder from your shoulders so you can live joyfully in the realm of financial freedom.

You can pay down your debt this year, whether your debt amounts to $3,000 or even $30,000. The single most effective way to do so is by creating an income stream and dedicating all of its earnings towards paying down your debt.

Yes, you may need to temporarily add quite a few hours to your workweek, but one year of long hours can lead to a life free of the many burdens of debt. Can you imagine what it would be like not having to make debt payments? Your paycheck would be yours to do with as you please!

Getting a Part-Time Job

If you have the ability to get a moderate to well-paying part time job, go for it! If you’re able to land a 20-hour per week part time gig paying just $12 per hour, that’s over $1,000 each month. Granted, you’ll inevitably need to pay taxes on this income, but even so, you’re able to keep about $945 in your pocket by the end of each month.

Over the course of a year, you’ll be able to devote over $11,300 to your debt. Surely, that’ll remove a heavy boulder from your shoulders! And if your spouse is willing to get a part time job with the same pay, you’ll be able to pay off your debt in the following amounts.

Total Debt Paid Off With Two Additional Part Time Incomes

Month -Debt Paid Off
1 – $1,890
3 – $5,680
6 – $11,340
9 – $17,010
12 – $22,680

How drastically would your life change if you were able to pay off over $20,000 worth of debt? Better yet, if you choose to keep the job even after you’re done paying off debt, you’ll be able to build a hefty savings account to protect yourself from ever needing to borrow money from lenders in the future.

Capitalizing on Your Hobby

Everyone has a hobby. Unless your hobby is habitual shopping, chances are you’ll be able to capitalize on indulging in your hobby. You can flip furniture, sell knitted items, profit with sporting gear, or even sell your homegrown vegetables.

If you’re talented in repainting furniture, purchase used furniture for pennies on the dime at craigslist.org, yard sales, or a local thrift shop. Then, sand the piece, prime it, paint it with two coats of glossy white paint, apply a protective coat, change the hardware and then list it back on craigslist.org for sale.

If you purchased the piece for $25, spent an extra $20 on supplies and are able to flip it for $150, you’ve made a $105 profit with just a few hours of work! When you become accustomed to the process, you may be able to flip 3 pieces of furniture per week and end up with a nice $1,260 profit. Not bad for indulging in a hobby you enjoy!

While you may not be the Picasso of cabinet refurbishing, you may have another hobby.

Below are 7 common hobbies that are easy to capitalize on

• Knitting/sewing
• Cooking/baking
• Babysitting
• Painting
• Flipping collectibles
• Writing
• Party planning

There’s no need to downsize, or even adjust your lifestyle in order to pay off your debt. You’ve worked hard to build everything you currently have; why give it up now? Getting a part time job or effectively monetizing your hobby will allow you to pay down your debt considerably this year so you can start living the debt-free life you deserve!