Live Debt Free

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How To Get Out of Debt Depression

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Debt can be a heavy burden; for some, it can cause depression. However, if you are facing a mountain of debt that never seems to get any smaller and feeling overwhelmed to the point of discouragement, there are ways you can get out from under it while also improving your overall mood.

  • Start by listing everyone who expects money from you
  • Create a repayment plan. Even if the amount transferred to each account is small, establishing automatic payments will give you peace of mind. Not having to worry about missing payments will relieve some of the burdens
  • You may also wish to consider government-backed loan consolidation or deferment programs and private debt counseling services
  • Consider using extra money from overtime or side employment to pay down debts faster; seeing regular progress would likely raise one’s emotions by providing them hope for a future beyond debt servitude

There is nothing quite like being in control of one’s finances. Set goals and stay committed; you will reach the other side soon enough. Debt depression does not have to control your life.

Acknowledge That You Are In Debt and That It Is A Problem

Debt can be incredibly stressful, and the best way to start dealing with the strain it can cause is to accept that you are in debt and recognize it as a problem that needs solving.

Refusing to confront your debt issues or sweeping them under the rug will only lead to more stress and anxiety.

The sooner you face reality, the faster you can move forward and take control of your finances. Though it may not always be easy, acknowledging our debt is essential for getting back toward better financial and mental health.

Make a Budget

Making a budget can be overwhelming, but it is necessary to manage debt. It can help you identify which areas of spending need to be adjusted to use your available funds to pay off bills and reduce debt.

It takes work to create an effective budget, but if done correctly, it will provide a plan to follow and the motivation needed to reach your financial goals. If you do a lot of research, plan carefully, and stick to your budget, you will be on your way to becoming financially stable.

Cut Back on Your Spending

When it comes to getting out of debt, cutting back on spending is crucial. It may seem complicated and inconvenient initially, but the long-term rewards for your financial health will be worth it. To make this task manageable, focus on small changes that can significantly impact your life.

Try buying store brands instead of name brands when grocery shopping, ride-sharing, or using public transportation whenever possible, and cut down on eating out or going to the movies with friends. These user-friendly adjustments might not seem like much, but they can save you money in the long run and get you closer to debt-free.

Increase your Income

One of the best ways to get out of debt is to increase your income. While this may sound difficult, you can take a few simple steps to do it successfully.

First, consider getting a better paying job if one aligns with your skills and interests. Doing so will make a considerable dent in your debt and give you the freedom of financial independence. Secondly, consider starting a side hustle.

This could be anything from tutoring others in school subjects to blogging or selling homemade products online. You’ll have fun developing new skills while increasing your income with each task completed. Finally, look for other ways to bring in additional income, such as investing in the stock market or taking advantage of free money offers from credit card companies.

https://www.verywellmind.com/ask-a-therapist-how-do-i-tackle-my-debt-and-my-anxiety-5112715

Make a Plan for Repaying Your Debts

Once you have increased your income, the next step is to make a plan for paying off all of your debts. An intelligent approach is to tackle any debt with high-interest rates first and then gradually decrease the balance on the remaining debts. Alternatively, consider consolidating payments into one monthly payment if you want to simplify the process and reduce financial stress.

This strategy can help keep track of progress more effectively and ensure that each debt is paid off on time.

Before embarking on your repayment strategies, it is essential to research ways to use budgeting and other innovative financial strategies to inform your decisions. Keeping a payment schedule will motivate you, make you responsible, and lead you to a life without debt.

Stay Motivated

To stay motivated throughout the process of paying off your debts, make sure to remember why you are doing this. Keeping the end goal of being debt-free in mind is essential to staying determined to get there.

Celebrate every successful small step along the way, such as paying off a large credit card amount, that gets you closer to achieving financial freedom.

Sometimes, remembering how far you have come can provide enough motivation during those tricky moments when you feel like giving up. Staying focused and motivated on becoming debt-free is possible; just be sure to never lose sight of why it is so important and what it will mean for your long-term financial security.

Seek Professional Help if Necessary

If you feel that you are struggling to take control of your debt situation and put yourself in a better financial position, seeking assistance from a professional can help. A financial advisor or credit counselor can look at your situation and help you figure out what you can do.

They can draft a comprehensive plan to help you reduce debt, build savings, prioritize payments according to interest rates, and protect your credit score. With their expertise and guidance, you can learn about budgeting and money-saving strategies that work for short- and long-term goals.

Having a professional help you through this process can make you feel less stressed and give you more power to make smart financial decisions.

Wrapping Up

Debt depression is genuine, and it can be difficult to break out of its hold. The most important thing is to not just focus on the negative feelings but to start actively working towards a debt-free future. In addition, it can help to prioritize debts, starting with the highest interest rate first and then working down from there.

Creating a budget and tracking spending can help identify necessary changes to eliminate debt. In addition, setting small goals and celebrating even the most minor successes will help maintain motivation to reach larger goals along the way.

Finally, finding support from a friend or family member who is also interested in achieving financial freedom could provide both accountability and an emotional boost when things get rough. With understanding, dedication, and persistence, anyone can break out of debt depression and onto a happier path toward financial freedom.

Image Credit: [Doucefleur]

Budget-Friendly Tips to Plan a Child’s Birthday Party

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Every parent wants to make their kid’s birthday as unique and memorable as possible. However, the party planning process can be daunting with so many picture-perfect birthdays and tons of decor and theme selections. This is especially true if you must stick to a budget and try not to overspend.

There are so many elements of a party to look after and plan, which can pile up your total costs. However, there are ways you can pull off a fantastic birthday party for your child without making a dent in your wallet.

You need some creativity, imaginative thinking, and hands-on effort to cut costs while throwing a fabulous birthday party your child will never forget. 

Here are some of the best tips to help you plan a budget-friendly perfect birthday without breaking the bank:

Tips to Plan a Child’s Birthday Party on a Budget

1. Find a Public Space with Free Rentals

Finding an excellent location and booking a venue can be one of the highest costs when planning a birthday. If you decide to rent out a place, you’ll have to take out a big chunk of your budget.

You might be considering booking a bowling alley, restaurant, or popular commercial venue, but this usually will not be a cheap option.

One idea for saving money is to look at free community spaces for public use. Then, all you must do is make the arrangements, set up the décor, and bring in your food and games. 

You will also have to consider the weather, as winter birthdays can be a little harder to pull off.

Another idea is to host a slumber party at your own house. This can keep things simple, cozy, and fun for everyone.

2. Host the Party Outside at a Park

If the location is still one of your primary concerns and the weather allows it, you can host a party outdoors in a playground or park. This will be particularly appealing for younger kids. They will be able to run around and play with complete freedom and enjoy the fresh air.

A birthday party at a park also provides entertainment for the little guests without any expenses. In addition, not hosting the party at your house means you will not have to worry about cleaning up or clearing space for everyone. 

You can also opt to do it in your backyard, on a reservoir, or at a local beach for an outdoor birthday party. You can also ask friends and relatives with bigger backyards if you could host the party at their place.

3. Make a Budget

A fundamental rule for planning a budget-friendly party is to first make a budget. Then, it would help if you took some time to consider how much you are willing to spend on your child’s birthday party. Being practical and realistic is essential for good planning.

Jot down the main categories or things you will be spending on and an estimate of how much you plan to spend on each item.

For example, you can divide the expenses into categories like decorations, food, games, party favors, cake, etc. This will keep you organized and clear-minded throughout the process. 

9 Tips for a Budget Friendly Birthday Party

Keep the Guest List Small

You do not have to invite 40-50 people to your child’s birthday party, especially when trying to keep it within a budget. Your costs will go up or down depending on how many people you invite.

Try to think carefully about the guest list and only invite the people relevant to the birthday party. For example, keep your guests limited to your children’s friends and close family.

Make Simple Invitations

If there is one thing you do not have to overspend on- it’s invitations. Buy birthday invites from a stationary store nearby or design them yourself and get them printed.

If you want to cut down on expenses even further, send digital invites to the guests, and you’ll be good to go. 

Make Your Decorations

You can look for an event manager or vendor to arrange the decor for your child’s birthday, or you can do it all yourself. This may sound tough, but it’s doable and saves money. 

Look up DIY decor videos on YouTube or Pinterest and follow the instructions. You can work with balloons and streamers, construction paper, glitter, and other supplies. This will be a fun activity for you and your child, and it will also be a huge money saver. 

Head over to the nearest dollar store and buy paper plates, utensils, cups, tablecloths, and other ready-made decor supplies. 

Cook and Bake Yourself

When you are planning a budget-friendly birthday, going completely DIY is one of the best options. You can save a lot of money by baking the cake, cupcakes, and dessert yourself.

Of course, it is much easier to order a customized and fancy cake from the bakery. However, this will be much more expensive and unnecessary. 

So, gather some sprinkles, edible decorations, and food colors, whip up a yummy icing, and customize your home-baked cake. It may not be perfect, but you can create unforgettable memories with your children while working on the cake together.

Food and snacks can also be made at home with some legwork.

There are many easy recipes you can look up online and follow. Some simple foods you can make include french fries, sandwiches, hamburgers, and pizza. You can also buy snacks from the store like pretzels, popcorn, marshmallows, candies, and chocolates for the children. 

Another affordable snack idea is to cut slices of apples, carrots, crackers and serve them with yummy dips. The kids would surely love munching on these light snacks, plus they will be healthy too.

https://lifeasmama.com/6-clever-tips-for-planning-a-kids-birthday-party-on-a-budget/

Go for Simple Games

There is no need to splurge on expensive new games or rent a bouncing castle for the birthday party. Instead, you can plan your games and have tons of fun. Think of simple games like soccer, baseball, blowing bubbles, or activities like painting, pottery, etc. 

Here are some fun game ideas that are simple and can easily be hosted at home without any spending at all: 

  • Three-Legged Race
  • Simon Says
  • Duck, Duck, Goose
  • Freeze tag
  • Musical Chairs
  • Hot Potato
  • Freeze Dance
  • Charades

Keep the Party at a Good Time

If you hold the party near lunch or dinner time, your guests may expect you to serve a full meal. So, it would be wise not to start the party at noon or after 5 pm.

Instead, keep it at any other time slot when snacks will be enough for the guests. This is a simple yet effective way of saving on expenses.

Reconsider the Party Favors

Party favors are often considered essential for a kid’s birthday party. However, you can decide to skip them altogether.

On the other hand, you can come up with affordable party favors consisting of a single homemade item, like a cookie or cupcake. You can also look for simple one-dollar items as party favors.

Image Credit: [Robert Kneschke].

How to Build Your Credit Score and Stay Debt Free

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Many of us know that being in debt is typically a bad thing from a very young age, but do we know why? Unfortunately, credit scores are not often discussed, so they may come as a bit of a shock to those who have just turned 18 and are looking to start building credit.

Your credit score has a significant impact on many areas of your life. It affects things such as buying a house, getting a credit card, and getting a loan. So, it is crucial always to keep it in mind when going about your everyday business.

Here we will tell you tips to build your credit score without going into debt.

What Is a Credit Score?

Your credit score is a three-figure number that indicates how likely you are to be a safe bet when it comes to loans. Essentially, it lets lenders know whether you are a risk. The higher the number, the better your credit score and the “safer” you are considered. 

https://www.cnbc.com/select/how-to-build-credit-and-achieve-a-good-credit-score/

Your credit reports determine your credit score, but if you had never had to pay anything in your name, then it’s common to have little to no credit history. 

CREDIT SCORE

Building a Credit Score

There are many ways to go about building a credit score, but some are better than others. For example, many people will tell you to get a small loan and pay it off when due simply to prove that you can do so. However, things are not always certain in life. What may not seem like a risk at the beginning can indeed become one.

So, how do you build a credit score without debt? 

Sign on as a Co-Holder’s on a Family Member’s Credit Card

One of the quickest and easiest ways to get a credit score is to be a co-holder of a credit card. For example, if your parents are willing to let you do this, you can be added as an authorized user to their account. Once you are approved, the payment history will lend itself to your credit score. Essentially, you get a boost in credit score with no work. 

It is better to become an authorized user on a trustworthy person’s credit card.

The last thing you would want to happen in this situation is that they make a late payment or even fail to make one altogether. This would then, of course, negatively impact your credit score through no fault of your own.

Open Your Own Credit Card

Perhaps a safer way to boost your credit score is to get a credit card with just you as an authorized user. This way, you won’t be reliant on anyone else’s spending habits for your credit. Of course, most credit cards will require you to have a good credit score already before they approve you. However, one option is a secured credit card.

A secured credit card needs a security deposit. The amount of money that you deposit with them is your credit limit. Essentially, it’s insuring you against yourself. You need to treat it like a typical credit card and pay the amount off when it’s due to receive your deposit back.

However, remember that failure to pay the sum or even a late payment negatively impacts your credit score. It also means that the lender keeps your security deposit to recover the money that you spent.

Set Up Autopay

The easiest way to quickly accumulate bad credit is to make a late payment. Your payment history makes up 35% of your credit scores, and so paying late does significant damage. In addition, late payment even just once can result in you being reported to the three main credit bureaus.

This report of late payment will then stay on your record for up to seven years. So, to avoid this, you should consider setting up autopay. It means that the amount owed will be automatically deducted from your account each month.

You can always keep a record of the amount spent and check it yourself against the amount automatically deducted to ensure that you are not being overcharged.

Get a Credit-builder Loan

A credit-builder loan is not your average loan, but it is designed to help people build up their credit scores. With this type of loan, you will need to place money into an account every month. When the set period is up, you will receive the total sum of your deposited money (possibly plus interest) minus fees. 

What you are doing shows that you can be trusted to pay a certain amount of money by a certain deadline. Additionally, it demonstrates to companies that you are trustworthy and can keep your money in order.

To Sum Up

A credit score has a significant impact on daily life, but it is often overlooked when we are children. The importance of building up a good credit score cannot be stressed enough. However, many people state that getting a loan is the best way to go about this. Unfortunately, that is not always the case, as any form of a loan carries risks.

Instead, we have listed above some of the best alternative ways to build up a good credit score without the need to take out a loan. Each of the methods listed above still carries a small amount of risk, and it is up to you to decide which way is the best for you. 

If you need to rely on someone else to get your credit scores, then becoming an authorized user is a great way. However, remember that you are reliant on someone else. Otherwise, lenders will insure you against yourself. Be sure to do you homework before opening a credit card.

Image credit:[Margo Hercules].