So Easy to Get Into Debt…

It is very easy to get into debt. Too easy. All you need to do is purchase a few items, whether they be small ticket or large ticket items that you charge to your credit card because you do not have the cash to pay for them. You could take a trip or a couple of weekend trips that you really can’t afford and charge them to your trusty credit card and before you know it you could be struggling to pay off the card just so you can turn around and charge it up again.

Sound familiar?

There are many ways to get into debt and one is by wanting everything you cannot afford to buy with cash. Many people end up in debt because of conspicuous consumption or the desire to appear to have both the status and money that other people have. In other words, many people want to have and do certain things as a sign that they are going places in their lives and this can lead to financial problems. Debt is akin to being financially buried alive and without help it is something many people take a great deal of time to get out from under.

Not Always Your Fault

To be fair, debt sometimes happens not because of a person’s over consumptive behavior but due to an unfortunate life event that is often beyond a person’s control. Losing a job is a common reason for a person to get into debt as they drain their savings to stay afloat and begin living off their credit cards. If a loved one gets sick then medical bills can bring about debt no matter how hard the person tries to prevent it. A lack of affordable medical insurance is another problem that causes low-income earners to end up with terrible debts. Having a low paying job is bad enough but then trying to nurse a family member back to health with no medical insurance can be a terrible burden to bear.

It is unfortunate how debt can occur and often take over a person’s life but regardless of how it happened in the first place, it is the responsibility of the person to fix the problem. The solution is one that an individual does not have to tackle alone. Always seek the help of qualified professionals if you find that debt has crippled you financially and is beginning to affect other areas of your life as well. Never go it alone. Getting into debt may be the easy part but getting out of it is not impossible, as many people have done it. 

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Is There Such a Thing as Debt Relief?

If you are in debt then finding ways to relieve yourself of the burden you are carrying is understandable. You may have heard of the term “debt relief” and wonder if there is such a thing. Is there? Let us look at that now. 

Defining Debt Relief

When asked the question- is there such a thing as debt relief? - you will receive mixed reactions. Some people will tell you yes there is, while others will scratch their heads and tell you that they are not sure if such a thing exists. Debt relief is a somewhat ambiguous term that refers to refinancing or rescheduling debt and to services and reduction of debt. To put it another way, debt relief is defined as, “the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations or nations.”

In reality debt relief is not something most individuals are able to profit from as most debts while they may be reduced in some instances are rarely forgiven. In the case of filing for bankruptcies some debts are written off while others still must be paid after the period of time for the bankruptcy is over. Some creditors are more understanding to their debtors than others. Some will offer debtors the opportunity to pay a portion of the total bill owing and then will forgive the remainder while others will find a way to make monthly payments more manageable for the individual in question.

Credit Counselling/ Debt Consolidation Services

It is always a good idea to look into credit counselling or debt consolidation services if you fear that your debt problems are getting out of control. Never be afraid to let your creditors know that your financial situation has changed (such as if you lose your job) and that you must look at ways to reduce your debt load.

Debt relief is sometimes an option for corporations that have run into financial problems and it has been awarded to poor countries by the government when it is obvious that the citizens of the country are suffering under the tremendous debts that the country owes the government or other more advantaged countries. One example of this that is often discussed is the Third World debt, which began being heavily discussed due to the Latin American debt crisis.

If debt relief is an option for you then it is worth considering but make sure you clearly understand the terms of the arrangement. Make sure that there is no way that the forgiven debt could ever come back to haunt you in the future. Be aware that even if a debt is forgiven or partially forgiven it will still affect your credit rating and credit history for years to come.  

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Saving Money by Reducing the Food You Waste

Sometimes no matter how good intentioned you are food still ends up getting wasted. While eliminating food waste completely may not be possible, reducing it is. When you reduce the food that is wasted in your household money can be saved. By so doing you do not have to feel that you are throwing your hard earned cash away in the trash!  

Here are some simple things you can do to cut down on the food that is being wasted in your home:

One. Think frugality when you shop and be as responsible as you can be as you push your cart down the aisles of the grocery store or local market. Do not overbuy food that you and your family cannot possibly eat. Have a list and focus on purchasing what is on that list. Buying only what you need for a week or two until your next trip to the supermarket will help to reduce waste.

It is also important to shop when you are not the least bit hungry. You are guaranteed to buy too much if you shop when you have food on the brain!

Two. You need to store your food properly in order to prevent it from going bad. Food waste often happens when it is not resealed in the right manner and air and moisture finds its way in. Make sure to vacuum seal or double bag anything that you will be placing in the freezer.

Use glass containers with lids that are sturdy to save leftovers in the refrigerator and use storage bins and containers that close correctly for dry goods such as flour, oats, sugar, herbs and spices. You need to keep freshness in and everything unwelcome out of the food items that you are storing, whether it is short-term or long-term storage. You also need to use containers that make the resealing process a simple one.

Three. When you come home from the store with your groceries have an idea of what meals you are planning to make for the week. From there you can figure out the size of the portions you need to leave out for fruits, veggies, meat and seafood and you can freeze the remainder of the food. This helps to prevent waste.

It is a good idea to freeze your food according to portion sizes. Different sizes of freezer bags come in handy for everything from freezing berries to peas to chicken to salmon. Label the bags so you know what each item is. You will be glad you did this when you get ready to make a meal.

Four. Do not overstock your freezer as this can make it difficult for air to circulate and it can also make it harder for you to find the foods that you are looking for. You also might end up forgetting what is in the very back of the freezer which could lead to the food being in there too long and getting freezer burn. This could also mean that instead of choosing something for supper in the freezer you will head out to the store. Food you already have stored will get wasted this way.  

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Controlling Your Urge to Spend Money

You earn money and then you want to spend what you have earned. Such is the case with many people. Earn and spend, earn and spend. But if you want to save some money for a rainy day or invest your money in the future, you have to get off this spending merry-go-round.

It seems that we are all hard wired to want what we want RIGHT NOW! We often purchase things so we can look a certain way and can keep up with the current styles. Everyone wants their socio-economic status to be on par with their peers.  However once you begin to spend or catch the wave of spending it is often difficult to stop. But it is not impossible to do so. It is spending or abuse of spending that tends to be at the root of most people’s financial problems as opposed to low incomes, which is contrary to popular belief.

How then do you break the urge to spend money as fast as you earn it? Let’s face it; we all want to have control over what we spend our money on. The answer lies in looking at the ABCs of the financial equation.

What are the ABCs all about?

“A” stands for adding up the value of the purchases you wish to make while “B” stands for breaking through the commercialism and all of the television, magazine and online advertisements associated with products and services. Finally “C” stands for comparing the alternative solutions you have to not spending your money.

Let us take a closer look at the ABCs of this financial equation and see how it all adds up:

A

Always take the time to add up exactly how much an item you wish to purchase is valued at. How much did the product cost to make from start to finish? Is the product of high quality or not? Is this a product that you will get a lot of use out of and is therefore worth the cash you will spend on it today or not?  Never buy anything that will only benefit you in the short-term. Think long-term value instead.

B

Break through what advertisers would have you believe. Advertisers will tell you whatever they think you want to hear in order to get you to spend your hard earned money to purchase a product. Refuse to be swayed by fancy words or fancy advertising (and often misleading) ploys. Wearing a specific brand of clothing or using a certain brand of shampoo or washing your clothes in a specific laundry detergent will not make you more attractive, happier, more successful or more popular. Don’t believe everything you are told.

C

Compare one alternative to another when you shop. Yes, you could spend your money now but you have other alternatives such as you could save your cash for a later date, a special occasion or for a bigger purchase down the road. Decide what matters most to you and do that.

To control the urge to spend, spend, spend put the ABCs to work every time you are thinking about buying something, whether it be a new coat, a new desk, a new refrigerator or a new computer. This will help you keep more of your money close at hand.  

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10 Tips for Doing Laundry on the Cheap

Doing laundry is not as cheap as it used to be. But there are ways that you can reduce the cost of getting your clothes clean. Here we look at 10 tips to help you to save money when laundry day rolls around! 

One. Wait until you have a full load to do your wash. A partial load wastes energy and water at the same time. If you live in a busy household and you have kids then it should not take too long for you to have a full load to do.

Two. Wash your clothes in cold water. There are plenty of detergents that you can buy for cold water wash (such as Tide for one). Washing your clothing, bedding, towels and the like in cold water will not only save you money on water and electricity but it will also extend the life of your clothing.

Three. There is nothing like the smell of fresh air on your clothing when you bring them in from outdoors. If you live in a house and you are able to hang up a clothesline then do so. The breeze and the sunshine will dry your clothes as nicely as can be. Not only will they dry naturally but they will smell great and wrinkles will be practically nonexistent.

Four. If you live in an apartment then you can create your own clothesline in the bathroom and air dry your clothes or else you can buy a clothes horse and hang your clothes on it anywhere that you have the room for it. Air drying is particularly good for your home in the wintertime because it puts moisture back into the air.

Five. There is not a great deal of difference between name brand laundry detergents and generic store brand ones. Sometimes we get used to a certain brand and become stubborn about changing but if you give some of the store brands a try you will save some money and you might be pleased to find a new brand and a new scent that you really like.  

Six. If you like to use fabric softener then try one of the cheaper generic brands or else use white vinegar. A half a cup of vinegar is all that you need per load.

Seven. For those who use fabric softener sheets experiment with store brands as opposed to the more expensive name brands such as Downy. This is a wonderful brand that smells lovely but cheap it is not! Fabric softener sheets can be used more than once so do not throw away the sheets after just one use. Reuse them the next time you do a wash.

Eight. An alternative to fabric softener sheets is dryer balls. These odd looking balls can be purchased at most department stores such as Wal-Mart and at most dollar stores. They help to dry your clothes faster and they separate them better as they dry. You still may need to use a fabric softener sheet however.

Nine. Only use your clothes dryer when you absolutely have to. This will save you money and it will extend the life of your garments. When something is not quite all dry taker it out of the dryer and hang it over the shower curtain rod or hang it on a plastic hanger so it can finish drying.

Ten. To ensure that your dryer is running safely and efficiently make sure that you clean out the lint trap every time you use it.

Doing laundry on the cheap is much simpler than you may realize. Once you put these tips to use you will find that saving money becomes a whole lot easier!      

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