Posts tagged debt
Two Cents Tuesday - Pay off debt the smart way

We've been talking a lot about debt these days - last week I shared some tips on how to set up a strong foundation before paying off debt, so you can avoid binge-debting. (Check out that video here).

If you've set up your foundation already; you've saved up a little cushion, and you've stopped the bleeding, you're ready to power through some debt payoff. Where do you begin? Is there a smart way to do it? Are you supposed to avalanche it, snowball it, or something else?

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Two Cents Tuesday - Do this BEFORE you pay off debt

Do you find yourself getting into debt, working hard to pay it off (finally!) and then...getting into more debt? Does that credit card bill never seem to move that much, no matter what you do? 
 

In debt. Boo.

Debt free. Yay!

Debt, again. Boooooooo.

If this cycle sounds familiar, you're not alone. This is such a common situation that I coined a phrase to describe it - binge debting.

Binge debting is common, difficult to break out of, and psychologically and motivationally very demeaning. It can make you feel hopeless, dumb, and ashamed. 

There is, however, a cure.

Just like with binge dieting, binge debting's more well-known cousin, the solution lies in fixing the underlying issues.

The underlying issues that lead to binge debting? Lack of cushion (savings), and lack of planning (a budget).

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Two Cents Tuesday - What's the deal with credit card points?

If you’re like most folks, you probably use credit cards. Maybe you’re working on paying them off, or maybe you’re like a lot of people and use them for points.

Getting rewarded for spending money you were going to use anyway? Sounds like a great thing, right? Just switch the card you pull out of your wallet and there you are. Points! As long as you pay off the cards at the end of the month, you don’t pay interest, and then you get all these magic points. Win-win, am I right?

Not so fast.

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