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11 Reasons Why You Stay In Debt

11 Reasons Why You Stay In Debt

According to the Federal Reserve, 43% of Americans exceed their income with their spending habits. This means that 43% of people are going further and further into debt each year and racking up interest charges at an alarming rate. They might as well be burning their money.

Many people never even plan on paying all of that money back, citing bankruptcy as their way out.

Here are 11 ways you are staying in debt, and what do do about it.

1. Your expenses are too high

This one is obvious. If you have backed yourself into a corner by amassing a huge house payment, huge car payments, large insurance premiums, and other gigantic fixed costs, then you are never going to have any money to pay down your debt.

If you want to pay your debt, you must reduce your expenses. Get a used car. Downsize to a smaller house. Shop around for insurance. Cancel recurring subscriptions. Question everything. Do anything you can to lower your expenses so you can begin to put that saved money towards your debt.

2. You have no additional income

If you only have one source of income, odds are that you base all of your expenses on that.

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The secret to being able to save money and pay down debt is doing things on the side that you enjoy that will also make you extra money. Pick up freelance work that can make you an extra few hundred a month.

You can then leverage this money to build a side business, which can turn into an enjoyable way to get extra cash flow to begin paying down your debt.

3. You have no picture of your money

Do you know where your money goes each month? If you look at your bank account and just sit there wondering, “What did I spend all of that on?” then you have an issue.

Sign up for an automated financial tracking site, like Mint.com, to get a better idea of what you’re spending where without having to do all of the manual work of balancing your income and expenses. This can help you perform a detailed analysis of where your money goes, and make changes based on the results.

4. You don’t take advantage of technology

The technology that exists today is incredible. You can literally pay your debt on autopilot. All it takes is a few minutes to set up an automated transaction to your creditors each month. You’ll find ways to adjust.

Couple that with a little bit of extra money on the side towards your debt, and you’ll have it paid off in no time.

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5. You use your time poorly

How many hours a week do you work? 40? Do you do anything after work to make extra money? Are you furthering your education to increase your worth? Are you networking to increase your level of influence?

Expenses, if left alone, will almost always increase over time. If you’re not using your time wisely, you’ll never increase your ability to earn more to keep up with those expenses, keeping you at the same level of income and plunging you further into debt as your expenses increase over time.

Always be improving your ability to earn more.

6. You run a balance on your credit cards

Credit card debt is the absolute worst type of debt you can have, because the interest rates are so high. You can literally rack up tens of thousands of dollars in interest alone in just a few years. Yet so many people just view them as a way to pay for things without actually having to pay for them.

But the fact is, that minimum payment is going to grow and grow over time as you spend more, and you eventually won’t be able to get any more credit. At that point, you’re going to have to pay before you can buy anything else. That’s no way to live.

Use credit cards wisely. Only put items on them that you can pay off each month. The day you start to run a balance on your credit card is the day you start racking up hundreds of dollars in interest, and it’s hard to escape from the high rates of credit cards.

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7. You worry about everyone else

The quickest way to get into debt and stay there is to start worrying about what everyone else thinks of you. The fact is, not everyone makes the same amount of money, but everyone likes to try to act like they do.

Stop worrying about what the image your car, house, clothes, and whatever else says about you and just live the life you are able to without going into debt. At the end of the day, those things are just liabilities on your balance sheet, nothing more.

8. You don’t have a spending plan

Money is made to be spent, but if you do not have a plan for what you are allowed to spend it on, then you’re going to be throwing it around everywhere.

Sit down and think about what brings you the most joy to spend your money on, and allow yourself a guilt-free spending fund each month. Spend it on one or two things that bring you joy and cut it off there.

9. You afford things

“Affording” things is a very quick way to get into debt. Because when you afford things, you are only thinking about how you can leverage all you own to buy them. Unless it’s your house, only buy things you can pay off completely in less than two years.

Otherwise you’ll spend your whole life with monthly payments towards things that are probably worth less than you owe on them.

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10. You buy too many little things

10 bucks here, 20 bucks there, $8.50 there—it all adds up. It’s very easy to tell yourself that “It’s only $10. Go ahead and spend it.” But the problem with that is when you keep saying that day after day, eventually you’ve spent $300 on nothing but a bunch of little trinkets, snacks, and things you ultimately don’t need that will just end up in a yard sale.

Resist the urge to spend money on little things. You’ll be a lot happier with one high-quality, large purchase.

11. Your money is not working for you

With a boatload of debt, you’ll never be able to invest in anything.

At some point in your life, your money must make money for you, not the other way around. Instead of spending all of your money, save some of it to invest in assets that will make you money over time.

Learn about high yield savings accounts, stocks, real estate (that you quickly profit from), building businesses, and other forms of wealth creation. Eventually you’ll get to the point where all you have to do to collect money is sit back and watch the birds.

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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

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    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

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      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

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        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 

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          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.

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          5. Academic Earth

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            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

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              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

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                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

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                  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

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                    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.

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                    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

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                      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

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                        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

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                          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

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                            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

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                              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

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                                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.

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                                16. Code

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                                  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

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                                    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

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                                      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

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                                        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

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                                          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.

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                                          21. LessonPaths

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                                            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

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                                              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

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                                                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

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                                                  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

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                                                    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.

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                                                    Featured photo credit: Dai KE via unsplash.com

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