Advertising
Advertising

8 Step Guide To Getting Out of Debt

8 Step Guide To Getting Out of Debt

Debt is like a noose around your neck. It irritates, suffocates and stifles the life out of you. No worries. We have a plan that will help spring you free and turn your frown upside down.

We’ve all read the success stories of people who got rid of their debt in 12-24 months. What they all had in common was a willingness to acknowledge, assess and tackle their problem head on. Using some of the most successful techniques out there, here’s an 8 step guide to help you get back on track.

List Your Debts

Before you can tackle your debts, you need to know your debts. Make a list of each loan or credit card, with the creditor’s name, balance owed, interest rate, minimum monthly payment required, and due date (if any). Loans include mortgages, leases, car payments, lines of credit, sales finance loans, overdraft, payday, etc.

Negotiate Lower Rates

Before you call a debt settlement company, see if you can do what they do. Call up each of your creditors and ask for relief. There are two strategies lenders typically use to reduce your pain.

Advertising

First, they can cut your interest rate. Credit card companies are most adept at this. Often you can go from a 19.99% rate to 11% or lower, cutting the cost of your debt by half.

Other times, lenders may be willing to reduce your minimum payment to ease your monthly obligation. This won’t lessen the cost of your debt, because you’ll pay for it over the long term, but it will make it more manageable within your budget.

Do A Balance Transfer

If you have high interest credit card, store card, even a line of credit, sometimes the fastest and most effective way to reduce your interest is by doing a balance transfer. Often times balance transfer credit cards offer 0% promotional rates for 12-24 months. The other advantage of balance transfer cards are that they allow you to consolidate multiple cards into one loan, and one payment.

If you do a balance transfer you’ll still have to make monthly minimum payments. Ideally, you’ll use the 12 months or more to pay down as much of the principle as you can, while it’s interest free. In the end you’ll have to figure out what to do when your promotional rate expires, because once it does, your interest rate will go back up to the 20% range. You can do yet another balance transfer, pay it down with a line of credit, or pay down your balance with cash.

Advertising

The High-Low

One strategy suggests you pay your high interest loans first. Mathematically, the faster you get rid of your most expensive debt, the cheaper your total debt obligation will be.

The way to do this is to rank your debts by highest to lowest interest rate. Calculate the minimum payment for each of your debts. Now whatever else you can afford to use to pay down your debts you should allocate towards the highest interest debt.

Snowball It

The other strategy, the snowball plan, says you should pay down your smallest loans first. The idea here, is that as you start knocking smaller debts off, you’ll start to feel more empowered, successful and organized.

The way to do this is, rank your debts by highest to lowest balance. Calculate the minimum payment of each of your debts. Then allocate left over funds towards the debt with the smallest balance. Cleaning up debts with $200, $500, or $1,000 balances will quickly make you feel like you’re on top of your game, and reduce the risk of missing a payment here or there.

Advertising

Tax Refund

Ever get a surprise tax refund? How about a planned tax refund. Either way, if you do, this time you’re not going to use it for an unplanned vacation. Use it to pay down your debt, either with the snowball or high-low strategy.

Sell, Sell, Sell

It’s guaranteed you have tons of “stuff”. You’re probably sitting on thousands of dollars of stuff you no longer use, but someone else can. Go on Craigslist, or ebay and start selling stuff you no longer use, pocketing $50 here, or $100 there. We’re talking things like your old treadmill, dumbbells, record player, teddy bear collectibles, baseball cards, bandsaw, etc… whatever you’re no longer using. Kids toys, strollers, cribs, high chairs, and car seats are great places to start.

You might even consider selling and/or downsizing some of your bigger ticket items like your car, ATV, boat, snowmobile, camper etc…

Cash Is King

For some psychological reason, study after study has shown that using plastic prevents us from assessing and feeling the impact of making purchases. As a result, we’re willing to spend more for the same items with plastic than we are with cash. We also have a harder time keeping a budget with plastic.

Advertising

The result? Your credit cards need to be put on ice. Don’t cancel them, because truthfully, sometimes they’re a necessity, like for hotel reservations or car rentals. But take them out of your wallet, and put them in your mother’s underwear drawer (that’ll make you think twice).

Also get rid of your debit card. While better than a credit card, it still allows us to overspend, and can impair your ability to keep to a budget properly.

The best way to stick to your budget is to take it out cash at the beginning of every month. Put it in an envelope (the envelope budget) and use it as needed. You will be shocked how much this will help you.

Featured photo credit: Michael Frank, Bankruptcy – to scissors a credit card, Flickr via flickr.com

More by this author

Marc Felgar

Marc Felgar is an aging, health & senior care expert focused on improving the lives of mature adults.

9 Myths About the Aging Process You Can Definitely Ignore How to Help Nausea Go Away Fast with These 5 Fixes Exercise for Seniors: How to Improve Strength and Balance (And Stay Fit) 7 Natural Memory Boosters That Actually Work for All Ages The Best Way to Sleep to Relieve the 7 Most Common Ailments

Trending in Budget Site

1 10 Best Online Shopping Sites I Wish I Knew Earlier 2 10 Amazon Review Sites That Will Get You Really Good Deals 3 12 Ways to Make Moving Cheaper and Easier 4 Striking Features of QuickBooks That You Must Know 5 Best Tips to Create an Engaging Financial Website

Read Next

Advertising
Advertising
Advertising

Last Updated on July 4, 2019

25 Killer Sites For Free Online Education

25 Killer Sites For Free Online Education

Whether you’re five or ninety five, the internet has a lot to offer. Particularly when the topic is education, the resources on the internet are endless.

Best of all, many high quality sites are completely free. From history to coding, excellent free online education awaits on the following 25 sites.

1. Coursera

Untitled copy

    Coursera is a website that partners with universities and organizations around the world. This brings a wide variety of topics and perspectives to one searchable database.

    Coursera is a powerful tool for free online education, and includes courses from many top universities, museums and trusts. This gives the site an extremely wide range of in-depth courses.

    Coursera is extremely useful if you’re looking to study many different topics, or want courses from different schools and groups.

    2. Khan Academy

    Untitled 2 copy

      Partnering with many post secondary schools, Khan Academy offers a useable, well organized interface. Also curating many courses from around the web, Khan Academy offers impressive depth on many different subjects.

      Among the more well known educational sites, Khan Academy is also incredibly useable, which may make it easier to keep learning goals.

      3. Open Culture Online Courses

      Untitled111 copy

        If you are struggling to find exactly the material you are looking for, try Open Culture’s listing of free online education courses. The page highlights 1000 lectures, videos and podcasts from universities around the world. The site features a lot of material found only on universities private sites, all in easy to browse categories. This means you can find hundreds of university courses, without having to visit and search each university’s own site.

        Open Culture’s list features courses from England, Australia, Wales and many state universities around the United States. A very helpful resource for finding many courses in one area of study.

        4. Udemy 

        Untitled 4 copy

          Udemy’s free courses are similar in concept to Coursera’s but additionally allows users to build custom courses from lessons.

          Working with many top professors and schools, the site mixes the customizable platform of other sites with a heavy emphasis on top quality content. This is another site however, that mixes free and paid content.

          Advertising

          5. Academic Earth

          Untitled 5 copy

            Another site with courses from many different schools is Academic Earth. Much like the three sites above, Academic Earth brings together top notch courses from many different sources, and focuses on offering a wide variety of subjects.

            Academic Earth lists courses by subject and school, so it might be easier to find what you’re looking for.

            6. edX

            Untitled 6 copy

              Another great option for free online education is edX. Also bringing together courses from many different schools, the site has impressive, quality information for everyone. edX covers a great range of topics.

              7. Alison

              Untitled 7 copy

                Unlike the previous sites on this lists, Alison is a free education site offering certification in some areas. Alison offers courses mainly in business, technology, and health, but also includes language learning courses.

                It’s a great option if users need certification for their learning as Alison also offers school curriculum courses.

                8. iTunesU Free Courses

                Untitled 8 copy

                  A very convenient place for free online education is iTunesU, because it integrates seamlessly with your iPod, or any app-ready Apple mobile device. On iPad, iPhone, or iPod touch, users download the iTunesU app.

                  Desktop users can access  iTunesU on the upper right hand corner of the iTunes Store. iTunesU is also convenient because the store is categorized much like iTunes.

                  Users can search learning materials in many different ways, including genre and topic. However, courses are often a mix of free podcasts or videos, and paid content.

                  ITunesU does include courses on a pretty wide scope of topics, but does not integrate with Android, Google or Windows mobile devices.

                  9. Stanford Online

                  Untitled 9 copy

                    Your hub for all the online offerings from Stanford University, Stanford Online offers self-paced and session based courses. While Coursera features some courses from Stanford, many classes are only available via other hosts. Some courses require iTunes, but most are completed in your web browser.

                    Advertising

                    Stanford Online is a great site for high quality courses, though the topics are somewhat limited compared to sites partnered with more than one school.

                    10. Harvard Extension

                    Untitled 10 copy

                      Like Stanford Online, Harvard Extension features free online education courses from Harvard only. This is another excellent source for top notch course material, though the course variety is less rich than multi-school sites.

                      Additionally, Harvard Extension allows you to search for courses by professional certificate. This makes it much easier if your online education goal includes certification.

                      11. Open Yale Courses

                      Untitled 11 copy

                        Open Yale Courses echoes Harvard Extension and Stanford Online, in that it offers only courses from Yale. While the site is similarly limited to topics taught at the school, Open Yale Courses offers a lot of videos of actual campus lectures. The availability of videos makes the site a great option if you’re looking for quality courses, but learn better by watching than by reading.

                        12. UC Berkeley Class Central

                        Untitled 12 copy

                          Much like the other schools on this list, UC Berkeley has a variety of free online education options. The school has slightly fewer courses than the schools above, but includes some supplementary lectures, webcasts and RSS Feeds, making it easy to keep up with the topics you choose.

                          13. MIT OpenCourseWare

                          Untitled 13 copy

                            Similarly, MIT offers a variety of free courses. The school has a comparable number of courses to the schools above, plus includes very in-depth course materials on the subjects available. MIT also offers free RSS feeds, a convenient way to continue learning.

                            14. Carnegie Mellon Open Learning Initiative

                            Untitled 14 copy

                              Carnegie Mellon’s free online education site is comparable with the other school’s on this list, however, Open Learning Initiative also covers a smaller range of topics. But for the topics that are covered impressive, in-depth material is available.

                              15. Codecademy

                              Untitled 15 copy

                                Codecademy is a website dedicated specifically to teaching coding. Where other coding sites follow an example/practice session workflow, Codecademy includes a live practice window. This means you can practice coding while still viewing the lesson material.

                                The courses at Codecademy are well written and easy to follow and the website is organized very nicely. Codecademy features a centralized dashboard where you can monitor your progress, plus organizes lessons into complete modules. This lets you learn an entire language without needing to pick the next course manually.

                                Advertising

                                16. Code

                                Untitled 16 copy

                                  Code is another website focused on coding and app writing. A site with high quality courses, Code also features learning options for kids.

                                  In addition to kid friendly courses, Code offers free online education classes on a wide variety of technology topics. These classes include app writing, robotics and Javascript.

                                  Most of the courses are also geared in a such a way that they can be useful in a classroom setting. This makes Code a great resource for harder to find coding topics, as well as various learning settings.

                                  17. University of London Podcasts

                                  Untitled 17 copy

                                    The podcast page on the University of London website is another great source for free education. While the courses are limited to podcasts, the site features podcasts from it’s own campus, as well as eleven universities in and around London. This gives learners a wide base of topics and lectures, but still ensures in-depth material.

                                    18. University of Oxford Podcasts

                                    Untitled 18 copy

                                      Similar to the University of London, the University of Oxford features many different podcasts. Most are public lecture series or lectures from visiting professors, with several different recordings available.

                                      The advantage to this particular site is that podcasts are organized into series, making it easy to subscribe to multiple lectures on one topic. Another good site for thoroughly in-depth lectures.

                                      19. BBC Podcasts

                                      Untitled 19 copy

                                        For the more casual learner, the BBC offers a wide variety of podcasts on many different topics. Most podcasts are updated weekly, and focus on everything from finance, to sports, to current events.

                                        Through the World Service line of podcasts, there are also many in different languages. The focus of these podcasts are less in-depth and theory based, which may be more accessible to the average person.

                                        20. TED-Ed

                                        Untitled 20 copy

                                          Another great destination for more general learning is TED-Ed. From the same people that brought you the all encompassing, motivational web series, comes a site chocked full of educational videos. Most include impressive animation, and all are ten minutes long or less.

                                          Not only is TED-Ed an excellent site for the curious, it also includes supplemental materials and quizzes on the videos. This makes the site extremely useful in formal education settings, as well as in entertaining ways to brush up on new discoveries and topics.

                                          Advertising

                                          21. LessonPaths

                                          Untitled 21 copy

                                            LessonPaths is another great tool for those looking for a more usable and convenient way to access learning material. On this site, users create link playlists of their favorite learning materials from other sites. Users then rank these collections, making it easy to find many different high quality, accessible sources on a given topic.

                                            22. Memrise

                                            Untitled 22 copy

                                              Another impressive free online education site offering ease of use and convenience is Memrise. Available both on desktop and as an app, Memrise is a particularly powerful tool if you are studying a language. The site encompasses many other topics as well, though some of the course material is user generated content.

                                              Part of what makes Memrise special is their integration of games into the learning materials, mixing learning with entertainment.

                                              23. National Geographic Kids

                                              Untitled 23 copy

                                                The kids site for National Geographic is another site that makes free online education applicable for younger users. For those looking for kid friendly education, a large variety of games, puzzles, videos and photos keeps kids interested on this site.

                                                National Geographic Kids doesn’t organize learning into courses, making materials available by topic and medium instead. This makes National Geographic Kids a good option for those looking for a more casual learning environment.

                                                24. Fun Brain

                                                Untitled 24 copy

                                                  Fun Brain is another good option for kids who want to learn online, but focuses on games and fun puzzles. Particularly focused on math and reading, Fun Brain’s game based approach can be valuable if the child in question struggles to pay attention.

                                                  Fun Brain offers rewards and challenges as well, and is another site aimed at a casual learning experience for kids K-8.

                                                  25. Whyville

                                                  Untitled 25 copy 2

                                                    Similar to the sites for kids free online education is Whyville a destination for preteen online learning. The site includes a variety of social features, with a focus on learning materials geared for young teens.

                                                    Whyville also mixes in educational games, to make the site a well rounded option for kids too old for simple games, but too young for heavy reading based material.

                                                    More About Online Learning

                                                    Featured photo credit: Dai KE via unsplash.com

                                                    Read Next