The Best Strategy to Clear Off Debts

The Best Strategy to Clear Off Debts

Falling into debts can happen very fast. Indeed, it catches many people off guard. An emergency, delayed salary, job shift, education loan, unemployment, or a new business venture can easily whirlwind you into a debt situation. The most important thing is how to get out of the debt and march to financial freedom. There are two main schools of thoughts on how to get out of debts.

The debt avalanche: In this method, you examine the debt with the highest interest and clear it first. This prevents you from undue overcharge that can worsen the situation. However, the method can be exhaustive and is devoid of motivation because you have to keep fighting all debts. A better alternative is the snowball method.

The snowball method of debt elimination

Unlike the debt avalanche, snowball method involves first clearing debt with small balances. While proponents of the debt avalanche method strongly oppose this method; it delivers better results because people are motivated when they see some debts getting cleared fast and easily.

  • Start by preparing accordingly: This is the most important step because you can assess the debt situation. Here, some painful calculations have to be involved. You have to include all the income sources, everything you owe, and ensure not to forget saving. Note that you need to keep expenses as low as possible so that there is some money left in the budget to help eliminate the debt. To make the process simpler consider checking on debt reduction expert firms and use their debt calculator for better planning.
  • Identify the balances on every debt: Outline every debt details including the balances, interests, and the minimum amounts you are required to make on a monthly basis. This is a crucial point because you will be able to single out on the loans with minimal balances that can be cleared off faster and with less effort.
  • Start clearing the debt with less balance: Focus the extra cash you identified on the budget to clearing the debt with a lower balance. Once the first loan is cleared, commit all the money you were using to pay it and the overheads of the budget to clear the next debt. Your momentum of repaying the loan will grow and every debt will be knocked down.

Here is an example; Figure out a person with an interest-free hospital bill of $1,500, and two credit card debts of $7,000, and $3,500 that have interest rates of 15% and 21% respectively. The best plan will be to clear the interest-free hospital bill which will be faster and easier, then attack the credit card loan with $3,500 without the baggage of the first debt. You will be more motivated and within a couple of months; only one debt will be outstanding.

To get rid of your debts, you have to face reality, and seek help where necessary. You should reach experts on debt management and use their debt calculator regularly to know you are on the right path.

Are TV subscription services worth paying for?

There are a lot of TV subscription services available right now, but are they really worth paying for? Does having a lot of access to a wide range of TV shows and movies really appeal to you? If it does, then the subscription fee could be considered as good value for money.

Different providers

At the time of writing, there are a number of TV subscription services available from different providers. Some of them let you play games as part of your subscription, whereas others don’t. Some of them give you access to the very latest TV and movie releases, whereas others make you wait just a bit longer.

If you want to have access to the very latest TV and movie releases, you will need to pay a little more for the TV subscription service each month.

Can’t you get the content elsewhere?

After a while, the content that we all pay for, will be available elsewhere. Whether it’s on the television, or on DVD. When each of us forks out money for a subscription service, we are ultimately paying to watch the content right now, rather than at a later day. Someone could quite easily type ‘The Martian watch online free’ and look for content there, or they could perhaps go around to their friends house and watch the movie that way.

You can get the content elsewhere, but like I said before, it’s very likely that you will have to wait.

Old or unpopular content

There are some programs and movies that you cannot watch any longer. This is usually because they are old, or they weren’t very popular in the first place. Movies and TV shows such as these can still be viewed via your chosen TV subscription service, and I guess that’s a good thing if you want to see them.

More and more features

In order to keep we, the customers happy, those who run subscription services try to offer us more and more features. They want us to think that we’re getting great value for money, and that they are the best provider to be with. I cannot comment on who is the bes provider, after all it’s entirely subjective, but I do know there are some very good ones out there.

Are you a TV or Movie fan?

If you like to consider yourself to be a bit of a TV or movie fan, then you may well be more than happy to pay up for some sort of subscription service. Each day you will have access to a wide range of shows and movies that you may have otherwise missed out on. In this respect, the money that you pay may seem like nothing much at all.

So are TV subscription services worth paying for? It all depends on how much TV or how many movies you like to watch, and if you think you’re getting good value for money.

The Cost of Finding your Own Place

I have pretty much had my own place since I was 19, (Aside from a few months’ moving back to my parents house when a relationship ended). My younger brother however, has never had his own place, and has never felt the need to.

Yesterday, I got a call from him and he was in a bit of a state. Little bro was threatened with being kicked out of my parents place, because of his bad attitude. This ‘Bad attitude’ includes swearing, and having a bit of a temper. Trust me, I’ve seen a lot worse, and to be honest, if they hadn’t let him get away with so much when he was a kid, things would be different.

Not knowing where to begin

In any case, little bro (Who happens to be in his early 30’s, I might add), is now faced with the realization that he may actually have to move out. This has caused him quite a lot of concern as he really doesn’t know where to begin. For years my parents have done everything for him: the cook his meals, do his laundry, and buy him exactly what he wants. Now faced with the prospect of moving out, little bro really doesn’t know what to do. He has no idea what the process of moving out involves, and he certainly is unaware of the costs.

I’ve told my darling little brother that he’s going to need to save at least a few thousand dollars. This will (hopefully) cover the costs of a move, a months’ rent in advance, admin fees, and anything else that crops up. Plus, it’s likely that he’s going to need to buy a sofa, kitchen equipment, and more.

The cost of finding your own place can really mount up. I should know, I’ve moved home a lot, and I know you need money to do that.

Here’s a brief summary of the things you’ll need to pay for:

  • The first months’ rent
  • A credit check
  • Deposit
  • Admin fees

Once you’ve signed on the dotted line and you’ve got your keys, you will then have to move in. Now it’s time for you to pay for:

  • The removal firm
  • Groceries so you have something to eat as you settle in
  • Washing machine, bed, sofa, refrigerator, cooker etc
  • Gas, electricity, insurance
  • Landline costs, cell phone rental
  • Clothing
  • More groceries
  • and more

Trust me, I’m not trying to scare you, or even put you off moving out, I just want to make you aware of all the costs involved. You could be looking at paying $600+ a month if you rent a small apartment, this is before you add all of the household bills on top.

Other payments

Don’t forget you will also need to get health insurance, unless you already have it. Please make sure that if you’re named on your parents health insurance, that it’s still valid if you move out. It’s always worth getting insurance, or you may have to pay full price for detail care from Invisalign Charlotte, full health costs when you visit the doctor, and for medication too.

Moving out of your parents home can be expensive, but at the same time, it could also be the best thing you ever did.

Can you survive the proposed benefit cuts?

At the time of writing, the British government are trying to implement some benefit cuts. What this means is people who are currently on a low wage, will see their working tax credit reduced. This is terrible news as it means those who are already struggling to make ends meet, will have to struggle even more.

What I find absolutely awful about this situation, is that some well-off people who do not struggle to pay their bills, are the ones who are making this decision. The poorest people in the UK are likely to find life even tougher come April 2016. The chancellor has said that most people will benefit once the living wage is implemented, but the fact of the matter is that most people won’t actually get the living wage. This is because it’s not mandatory, which means the poorest people on the minimum wage will be badly affected.

So what can we do to make sure that when April 2016 comes, that we’re not struggling even more than we currently are? I have a few tips that could help you should the worst happen:

Save what you can

If you think you’re going to be badly affected by the proposed changes, then my advice is to save what you can. I know you may not be able to save a lot of money, but every pound helps. Even if all you can do is put £5 aside, but it aside as it could be a lifeline next year.

Think about what you can sell should you need extra cash

We never want to have to sell our things in order to be able to eat, but this is something you may need to be prepared to do. I’m not suggesting you sell your best kitchen knives or even the TV, but for now, think about those things you can easily live without.

Consider taking on more work

This may seem impossible if you’re a single parent, but with the internet readily available to most, you may want to consider doing a bit of freelance work. There are a lot of freelance websites out there that post thousands of jobs every day, and there could be something for you. Alternatively, you may want to think about getting part-time work.

Remember you can treat yourself now and again

If ‘treating yourself’ means you can enjoy a 99p pizza once a week, then do. When times are tough, you have to keep your spirits up. For me, treating myself involves buying a few second hand books from a charity shop, as there’s nothing finer than a good [cheap] book.

Stay away from branded products

When you’re food shopping, try to stay away from branded products and instead go for the shop’s own make. Sometimes the shop’s own is just as good, or occasionally better than the branded product. Reducing the cost of your grocery shop will make things easier, so make sure you go for the bargains, and make use of cheaper shop’s own products too. As you can see, there are ways to cut down on your expenses and make life a little easier. Don’t forget to ask for advice and help if you’re really starting to struggle.

Does getting older come with additional expenses?

When we look ahead to our retirement, we often think that it will be a fairly easy time. By then, we should have paid off the mortgage, the car, and perhaps any loans we have taken out. It’s likely that we also think we’ll have a lot of time on our hands, and we can fill it with whatever we want. The trouble is that life may not turn out this way, and getting older can come with additional and unforeseen expenses.


What kind of expenses am I talking about?

When I talk about people getting older, and the costs associated with it, I am referring to the potential health issues that may arise. Every single senior citizen has some sort of health concern that has come with age, and it’s this that could prove to be costly. If you or your partner become housebound or dependent on each other, you may have to fork out for durable medical equipment. On the other hand, you may also have to pay for one of you to be cared for by someone else, in an entirely different location.

Ok so not every senior citizen will have to deal with ill health in such a dramatic way, but it is best to be aware of this issue. Many people rely on their pensions to help them, they assume that they will be able to get by once they have retired, and indeed some people do. The trouble is that not everyone saves up enough money, and not everyone has the ability to.

Not knowing what the future will hold

The fact of the matter is that we just don’t know what the future will hold, but what we can do is tryto prepare for it. Even if this means setting $20 a month aside to go into your pension, it’s better than nothing.

It’s safe to say that we just don’t know what the future will hold. We may be able to get by, or we may struggle. If we start to prepare ourselves, and if we save money where we can, we may just find that things are ok.

Getting older may come with additional expenses if we need medical equipment, or even if we need to find somewhere else to live. All we can do is prepare ourselves and hope that everything turns out ok. My advice? Start saving where and when you can, so that you have a bit of extra cash when you reach retirement.

How to expand your office space without breaking your wallet


If your company is growing faster than you accounted for, you may be on the lookout for new office space. While that may be necessary for many companies, there are a few options you can consider first. This article will give you a few ideas about how to manage the problem without having to spend too much.

Expand office space

Some companies need a space to meet clients and make their pitches. It may be important for all your employees to share a common building to make the job easier. You can look for good deals to lease a larger space or put in additions- these are the traditional methods of increasing office space. You may also want to consider using module offices if you own your office building. This option allows you to put in an addition without spending too much money and without too much disruption to the workday.

Share a space

If you lease an office in a building with other companies, you may be able to find a shared workspace situation. Some businesses may have more office space than they need and may be willing to rent a portion of their space out to you. This means that you share in the burden of rent and utilities. Another advantage of this arrangement is that you can negotiate a shorter lease than you would get with a commercial landlord. This allows your company to be agile and respond better to sudden drops in workforce numbers.

Offer flexible work arrangements

Not only will these arrangements help you cut rent costs, but they can work wonders for morale as well. This will mean that you have a more happy and productive workforce. Offer to let your employees work from home if they do not absolutely need to be in the office. You can also offer shared spaces where employees can work flexible hours and share a desk or area. This is especially viable for businesses that need to be operating around the clock.

Take down those walls

If you have a suite of offices around the cubicles for mid to high level managers, you can opt for an open flooring plan instead. While you may hear some grumblings from the managers, it can work wonders for team cohesion and productivity if implemented properly. The managers will always be around their employees which will build trust and a more harmonious environment. Getting rid of large offices and their walls will also mean that a lot of floor space will open up where you can accommodate your new employees. A growing company will need team cohesion if it is to keep functioning properly and an open floor plan is a great way to achieve this.

These are just some of the options when it comes to accommodating more people on a short budget. Brainstorm with your employees and get their input before making major changes. This will mean that you will have a workforce that will bear some of the responsibility for the decision and will be happy with it.

Applying for a loan when your credit score is bad

file000195499258Not everyone has a great credit score, in fact more and more people have trouble keeping their credit score just as it should be. In a perfect world, we would all have a good credit score or history, and we’d be able to get a loan as and when we needed it.

The trouble is that a lot of people are struggling as it can be hard to make ends meet, and they often take out loans that are hard to pay back, or they miss payments on their current loans.

<h3>A risk

When your credit score is bad, banks and other financial institutions tend to see you as a risk. Unless they are sure they will get the money back, they won’t lend it to you in the first place. I know this may seem quite harsh, but they do have to be careful.

Imagine if someone asked you to lend them some money, but you weren’t sure if you would ever see it again, how would you feel? Chances are that you may not be too keen to hand over the cash. The money that you’ve worked so hard to earn may end up disappearing into someone else’s pocket, when it could be in yours all the time.


What can you do?

So what can you do? How can you get a loan when you really need one? There are a few solutions that you may want to consider:

  1. Ask yourself if you really do need a loan, and whether there’s any way you can manage without one.
  2. If you find that you still need the money and you cannot manage, then perhaps asking friends or family is a good way to get the cash you need. They are unlikely to charge you interest, and arranging payment dates can make them more confident about handing over their cash.
  3. Try to work a few extra hours. Some people I know have taken on a few more hours at work, and they’ve managed this way. My friend who creates Topiary Art did an extra 5 hours a week, and that helped him to get hold of the much-needed cash.
  4. Think about selling things you don’t need or want. This is a great way for you to make some extra cash. Although you may not be able to come up with the full amount, you could well find that your bank balance is a little better.

Pay day loans

One thing I don’t want to suggest is taking out a payday loan. The interest rates on them can be phenomenal, and you could end up paying 50% more back. Some people do manage with this type of loan, but a lot of people don’t. My older took out a payday loan, and then had to apply for another as he was unable to make payments on the first loan. This is how things can spiral out of control if you’re not careful.

I think one of the best things you can do is to consider all of your options before you take out a loan. If it looks like you can get away without applying for one, you could save yourself a lot of cash in the long term.