If you're like most people, paying all the bills each month is very difficult!

If you are barely making ends meet, you might try these tips on how to find extra money each month.

The first step in finding extra money each month is to complete a buget.  You need to be very honest with yourself and list everything you are spending money for each month.

Yes, even Starbucks!

Now that you know where you stand, financially, it's time to go to work to see where cuts can be made.

Let's start with you credit card bill or bills.

I know you don't want to hear this, but STOP BUYING THINGS ON CREDIT!  I know the rationalization, but if you really want to cut your budget, you cannot justify an extra $10 here and $10 there.  It all adds up...way too much!

If you have credit cards with interest rates of 20% or more, you should be able to get them lowered.

Call the credit card company.  The number will be on your bill. 

When you get the representative on the line, tell them that you must cut your rates and need them to lower yours.  If they refuse or say that they can't, tell them (nice way of threatening) them that then you will have to shop around for another creditor to transfer your balance to.

Don't give up!  The credit card industry can modify the rates.  Obviously, they want to charge as much as possible, so they train their representative to be tough, but YOU HAVE TO BE TOUGHER!

By the way, if you have too much credit card debt and are not able to keep up with the monthly payments, there are several option that may help.

What about that CABLE BILL?

If your not careful, your cable company may slowly raise your bill.

We have a cable company (I won't use their name, but they are BIG!) and have the bundled package (cable, phone, internet, etc.).  Our monthly bill is usually about $200. Last month, the bill was $260! That's almost a 30% increase!  WHY????

We called the company and was connected to a customer service representative.  She said that there was nothing she could do about it, that it was just a "normal" rate increase.

So, we asked to be transferred to the LOYALTY OR CUSTOMER RENTION DEPARTMENT.

Since we had been "loyal customers for so many years...", they said they would not increase our bill!  Again, you have to be tough and don't give up!

Utility Bills

It seems that utility companies can get away with raising rates anytime they want to!  I know there is some kind of "government application process" each utility company must go through, but when is the last time you saw your rates lowered?

So here's a few tips you can use to cut those utility bills:

Your Heating Bill

We'll talk about how to cut your ELECTRIC or GAS bill later, but first, when is the last time you checked your home for air leaks or drafts?

Yes, you could call a company that does this, but not only will it cost you, most likely they are going to recommend replacing or updating your equipment!

Check all of your windows by feeling for cold drafts of air.  If you feel a little cold air, that means that your warm air is most likely going out!

You can get several types of sealers or caulking for windows and doors at your local home improvement store.  If your not sure which one you should use, most of the sales reps can help.

What about your old ELECTRIC OR GAS FURNACE?

I'm a do-it-yourself guy, and each time I go into one of our local home improvement stores, there's a sales person trying to get me to "upgrade" my furnance.

Yes, mine is an older model, and yes, the new ones are much more efficient, but I'm having a hard time justifying spend $4,000 - $5,000 to save $30 -$50 on my electric or gas bill!

I know there are government programs that may give me a credit, but I know that by just checking all of my windows, doors, under the sink, etc., I can save a lot of money, and you can too!

WATER BILL

Check for leaks!  Just a little faucet drip can end up costing a lot of extra money on your water bill.

Not just the faucets, but check those toilets!  If you hear them continuing to run, $$$$ down the drain.

Once again, you should have to call a plumber, but can get great do-it-yourself help online or at your local home improvement store.

INSURANCE RATES

I know you have seen the ads on TV about saving up to 15% on you car insurance, but have you compared your current policies?

Get out your insurance bill (car, home, other) and go on line to compare. I'm not advocating reducing a lot of coverage to save money, but you may not need all of the "extras" you have been paying for.

If you are paying for your own HEALTH INSURANCE, it's time to check it out.  Most health insurancd premiums can be dramatically reduced by electing to increase your deductible and/or co-pay.

These are just a few tips on how to find extra money each month, and you may discover more!

What if by just following a few of these suggestions, you could find an extra $50, $100 or more each month?  Is it worth it...you bet it is!  Good luck!

Are money issues plaguing your marital bliss? Well, you're definitely not alone. In fact, research shows that couples fight more about money than any other issue—including sex, jobs, children, and religion.

For a relationship to be healthy and sustainable, both people must be committed to working through money issues. If your marriage is going through a financial rough patch, don’t worry! With a little work and a lot of communication, you'll get through the tough times.

Here are 4 money management tips to get back on the road to a happy and stable relationship:

Tip #1: Hold Yourself Accountable

Let's face it—your spouse probably isn't the only one to blame for financial problems in your relationship. Many people have bad habits when it comes to managing and spending money.

So before confronting your spouse, take some time to carefully analyze your own money habits. See if there are ways you can improve and then jot down ideas about how to make positive changes. When you lead by example, you’ll inspire your spouse to improve their financial habits as well.

Tip #2: Don’t Play the Blame Game

Conversations about money with your partner can get feisty. However, don’t let anger or resentment get the best of you.

Shaming your partner will only embarrass, humiliate, or anger him/her—so be cautious when you talk about money. If you feel that your partner is too careless with money or doesn't include you in financial decisions enough, calmly express how it makes you feel.

Try using this formula: "Whenever you [insert money habit], it makes me feel [insert emotion]."

Explain your thoughts and feelings logically and ask your partner if they'd be willing to work as a team to improve. Keeping any anger and resentment out of a money conversation will make it much more positive and productive!

Tip #3: Make Plans for your Future

One of the most unique ways to improve your relationship as a couple is to start planning for a successful financial future that you will enjoy together. Perhaps you want to save for a home, car, vacation, or early retirement.

Whatever the two of you envision for your future, start making decisions about how you'll reach those goals. Come up with a plan that you can stick to. Many of your financial goals will be long-term, so make sure to have little celebrations every few months to acknowledge your progress.

Tip #4: Talk about Spending Ahead of Time

Since you and your spouse probably won't be together every time you buy something, it's important to talk about big purchases ahead of time. The discussion could be as simple as making a phone call while you're shopping and asking, "Are you ok with me getting these shoes?"

It might seem a little overboard and juvenile, but trust me, considering your partner’s thoughts and feelings will pay off in the long run!

Money isn't always easy to talk about, but that doesn’t mean it has to wreak havoc in your relationship. Use these 4 tips to improve your finances as a couple and make your relationship stronger.

If you are like most everyone else out there, this recession has been a loud wake-up call to cut back on frivolous expenses, and save more. Now that the economy is slowly bouncing back, consumer spending is starting to rise and savings rates are going back down.

There’s nothing wrong with spending a little on unnecessary items once in a while, don’t neglect your long-term financial goals, like paying off debt, building an emergency fund and saving for retirement.

Here are 3 easy ways to save money and free up extra cash to meet your financial goals.

Tip #1: Create a Money Routine & Stick to it!

Having a routine when it comes to your money is one of the best ways to master your personal finances and avoid unnecessary expenses like overdraft fees and late charges. Most people don’t intend to make late payments or overdraw their bank account, but basic money management can fall through the cracks when you don’t have a money routine.

The solution for staying on top of your finances and never getting hit with expensive late fees is to create and stick to a Money Routine. Set aside a couple of hours, one day each week to balance your checking accounts and pay bills or set up bill payments online. 

By sticking with your routine, you will accomplish more in your financial life, like following a budget, closely monitoring your investments, and SAVING MORE MONEY! It’s also a great way to catch a would-be identity thief who could wreck your finances.

Tip #2: Calculate how much TIME that item will cost you before you buy

A great way to rein in spending is to consider what an item costs you in time, rather than dollars, before you buy it.

I’ll use Sarah as an example. She works as an administrative assistant in an insurance office and earns $15 per hour. Whenever Sarah is trying to decide whether to buy something, she divides her hourly wage into the price to figure out how much working time the item would cost her.

For example, if a new outfit cost $100, and you devide that $100 by $12 (the amount you make per hour), that new outfit will cost you a full day's work before you pay taxes!  Do you love that new outfit enough to spend that much time earning it?  If the answer is no, just walk away, and save your hard earned money for something that is worth it.

Tip #3: Be a Smart Grocery Shopper

Most people think they can save money by eating more home-cooked meals. But don’t be fooled.  Buying groceries won't automatically save you money. If you show up at the supermarket hungry and without a plan, you can easily buy more than you need or make expensive choices.

To save on groceries, always plan a menu for the week.  Make sure to plan a couple of nights to eat up those left overs you are sure to have. Try making the main dish of one meal without meat to save more and eat healthy. Coupons can certainly help lower your food bill, but don’t get lured into buying something you don’t need or that isn’t a healthy option, just because you have a coupon for it.

When you’re at the grocery store, only buy what you can eat. Prices for non-food and some non-perishable items—like paper towels, soaps, toothpaste, and drink mixes—can be too high. Do your research to see if prices are lower at local discount warehouse stores or drugstores.

You might be surprised by how much small changes can reduce anxiety about money, improve your financial life, and make you feel more in control of your financial future.

Follow this 5 step plan to make your personal finances healthier and build a better Financial Future for you and your family.

Step #1: Set Your Money Goals

In this first step, it is tim to sit down and really think about where you want to be financially in the future.  Think about the following questions to get you started on setting your money goals:

• What part of your financial life was disappointing last year and what can you change so it is better next year?
• What part of you financial life worries causes you the me the most stress, and what safety nets can you put in place to help relieve this stress?
• What would you be proud to accomplish in the next 5 years of you financial life?

Step #2: Check Your Credit Report

Your credit report plays a huge role in your personal finances and financial future.  Each year you can pull your credit report for free from each of the three major credit reporting bureaus.  Simply go to AnnualCreditReport.com to get your Free Credit Report. 

Instead of pulling all three reprots at once, try spreading them throughout the year.  For example, pull your Equifax credit report today, then mark your calendar to pull your Experian credit report in 4 months and your Trans Union credit report in 8 months.  By doing this you will be keeping a close eye on your credit without breaking the bank!

If you want to check your credit score for free, go to CreditKarma.com

Setp #3: Research your Debt Elimination Options

If you have credit card debt, retail store cards, medical bills or other unsecured debts, you have several options available to you to help eliminate that debt once and for all while saving you time and money.

• If you plan to pay off your debt on your own, consider adjusting how you make your payments.  The Debt Snowball is a popular method to help you pay down your debts fast. 
• If you are able to keep up with your payments, but your high interest rates are keeping you from eliminating your debt, a Debt Consolidation Program may be a great option for you. 
• If you are struggling to keep up with your minimum payments or you have already fallen behind, you should consider enrolling in a Debt Settlement Program which can reduce your monthy payments and eliminate your debt for much less than what you owe!

Step #4: Create a Budget

If you are like so many others out there living paycheck to paycheck, creating a budget can help you to start saving for your retirement and start building an emergency fund.

Start by writing down everything you spend for an entire month.  Once you have done this, take a look at how you’ve been spending your money, and see where you can cut back in order to put some money into savings or pay down your debt.

Step #5: Set up Automatic Retirement Contributions

Participating in a retirement plan at work is a great way to make sure you’re consistently investing for your future. If you don’t have a workplace plan you can invest in an IRA as long as you have some amount of earned income.

Set up a direct deposit so a percentage of your paycheck is automatically invested in your IRA. Or set up an automatic transfer from your bank account to your IRA once a month or every payday. Automating your financial goals is the best way to make sure you accomplish them.

Only 10 shopping days left until Christmas!  It's not too late to make your list and check it twice. But if you are planning to credit cards to buy your gifts this year, you will pay a lot more than you bargained for.

Sometimes, using your credit cards is a necessary evil.  If this is the case for you, a good rule of thumb is to not put more on the cards than you can pay off in ONE MONTH!  According to ecomerce-guide.com 52% of Americans plan to spend $500 or more this Holiday season.  I don't know about you, but I'd have a hard time coming up with that much to spend out of my budget for one month. 

Use these tips to ensure that you keep your spending under control and have a DEBT-FREE HOLIDAY!

Tip #1: SET A HOLIDAY BUDGET

Before you head out to the mall, decide exactly how much you can afford to spend.  Try to allow a small buffer just in case.  Make a list of each person you need to buy for and allocate a set amount of your Holiday Budget for each person.

Tip #2: Make a List

Just like Santa, you need to make a list! Write down each person you need to buy for and allocate a set amount of your Holiday Budget for each person on your list.  Don't forget gifts for teachers and office party gift exchanges.

Tip #3: Don't Sign Up for a Store Credit Card

The discounts offered for signing up for a store credit card often sound like a good idea.  However, these store credit cards often come with unreasonably high interest rates.  If you can't pay off the balance in full, the interest will cost you far more than what you saved by opening the card in the first place!

Tip #4: Shop Online

Shopping online allows you to easily compare prices from many different companies from the comfort of your own home.  There are no pushy sales people there to talk you into spending more than you planned, so it is much easier to stick to your budget.  Also, always remember to search for a coupon code or promo code before you make any online purchase.  You can almost always find some sort of additional discount when you shop online.

If you do shop online, shipping costs can really add up.  Keep an eye out for free shipping promo codes or check out freeshippingday.com where a huge list of online stores offer free shipping on December 16th!

Tip #5: Re-Evaluate

Since Christmas is right around the corner, you may have already purchased most of your gifts.  If you have already overspent, don't hesitate to re-evaluate your purchases.  You can return any excess gifts or exchange them for more budget friendly items.  Also, keep an eye out for last minute Christmas sales.  Stores often discount items right before Christmas.  If an item you have already purchased has gone on sale, consider taking it back to the store for a price adjustment.

If you follow these 5 Last Minute Shopping Tips, you will have a less stressful Holiday celebration.  When you stick to your budget, you can relax and celebrate with your family and friends in peach without worrying about the bills to come in January!

Happy Holidays Everyone!

It's almost impossible to live debt-free; most of us can't pay cash for our homes or our children's college educations. But too many of us let debt get out of hand.

Ideally, experts say, your total monthly long-term debt payments, including your mortgage and credit cards, should not exceed 36 percent of your gross monthly income. That's one metric mortgage bankers consider when assessing the creditworthiness of a potential borrower.

It's far too easy to spend more than you can afford, especially when you pay by credit card. The average U.S. household with at least one credit card carries nearly a $10,700 balance, according to CardWeb.com, and personal bankruptcies have hit record highs in recent years.

Of course, avoiding debt at any cost is not smart either if it means depleting your cash reserves for emergencies. The challenge is learning how to judge which debt makes sense and which does not and then wisely managing the money you do borrow.

Good Debt vs Bad Debt

Good Debt

Good debt includes anything you need but can't afford to pay for up front without wiping out cash reserves or liquidating all your investments. In cases where debt makes sense, only take loans for which you can afford the monthly payments.

Bad Debt

Bad debt includes debt you've taken on for things you don't need and can't afford (that trip to Bora Bora, for instance). The worst form of debt is credit-card debt, since it usually carries the highest interest rates.

Sometimes the decision to borrow doesn't hinge on how much cash you have but on whether there are ways to make your money work harder for you. If interest rates are low, compare what you'll spend in interest on a loan versus what your money could earn if it were invested. If you think you can get a higher return from investing your cash than what you'll pay in interest on a loan, borrowing a small amount at a low rate may make sense.

photo by: images_of_money

Remember Spy Kids 2: Island of Lost Dreams?  There is a part that shows two inanimate skeletons fighting over a necklace. Juni, one of the main characters takes the necklace for his own, and the skeletons wake up to find it.  When they finally get the necklace back, you see them fighting over it once more, each trying to prove, "It's mine!"  Money can be a person's favorite toy, even diamonds are a girl's best friend, but when you get married, sometimes the line becomes blurred as each spouse wonders what is mine, yours, and ours.  Money does not have to be a statistic for divorce, and here are some ways debt and marriage can work for you.

Pooling Debt

You have grown close to your money, and you want to keep it safe, and be responsible with it, so you opened up a bank account.  Now that you are married you wonder whether you should have a joint account or keep your accounts separate.  You can do both, and here is what each account will do for you.

• Separate accounts-Before you got married, you both accumulated debt.  Now that you are married, you can both decide which debt you can help each other with, and which should remain your own.
• Joint accounts--Set this account up for the debt you have accumulated together, and the debt that you decided that you can help each other with.

Savings Accounts

Life happens when we least expect it, so setting aside money--no matter how small--will add up quickly to deal with these issues.

• First account--This can be used for car repairs, medical bills, sudden funeral costs, home repairs and replacements, and any other issues that might happen.
• Second account--We all like to have fun, buy things like clothes and jewelry, and go places whether it is a vacation, to the movies, or out for dinner.

When you think of marriage things like love, a house, and children come to mind. Unfortunately, few people ever think of debt in the same equation. Debt and marriage requires work to be successful, and when you both put in the time, you will be one step closer to financial freedom and a long and happy marriage.

Your credit score is like a financial report card, and like a report card you are usually not the only one to see it. Applying for loans, mortgages, bank accounts, and new cars loans all require a credit check. There is much more that goes into building a good credit score than just paying your bills on time. To you understand just what does build and destroy a credit score, I have compiled the following list.

1. Accounts
   Depending on the type of accounts you hold, and how many, your credit could gain or loose points. Generally, a good mix of account types makes for good credit. Having a mortgage, car loan, and a couple credit cards in good standing should leave you with a lot of valuable credit points.
2. Payment History
   Your payment history on loans and credit cards can affect your credit for years to come. Making payments on time will add points to your credit credit score. On the other hand, missing payments often can result in the loss up to 100 points!
3. Owed Debt
   If you have debt then it may drop your credit score. However, some debt is actually good for your credit score. Having credit cards and mortgages, can help build your credit if you regularly make your payments. However, if you owe a lot of debt to many different lenders, it could potentially destroy your credit. A good rule of thumb is to keep your loans in check, and never borrow more than you can pay off.
   
4. Credit Age
   If in good standing, having credit for a long time should improve your credit score. Try keeping accounts open for a long time and making payments regularly and on time. If you are new to the credit game and are just starting to build your score, then you want to make sure and open an account that you know you will be able to keep.
5. Loan History
   Taking out a loan does not necessarily take down your credit score. Actually, taking out a loan for something like a car could help your credit. However, late payments or very low payments and high interest could get you in to trouble and hurt your credit score. Always think of your loan in the long term before you take one out.
6. Credit Checks
   You may be surprised to know that having someone check your credit (i.e. a new employer, landlord, or lender) will drop it by few points. This is frustrating, but an unavoidable fact. To help prevent yourself from missing out on too many points, try to reduce to the number of times you have your credit checked, and only have it done when absolutely necessary. Read More --> Hard Pull vs Soft Pull: What's the Difference?
7. Unpaid Parking or Library Fines
   Although they may seem unrelated to your credit, having unpaid parking violations, or library fines can negatively affect your credit score. It is always a good idea to pay off any debt, regardless of how small or seemingly unrelated.
8. New Credit
   Getting too many credit cards is a sure way to hurt your credit score, no matter if you make timely payments or not. In this case, consolidating some cards could help you in the future. While consolidation will normally drop your score by a few points, building credit will be easier from then on.
9. Collections History
   Having a history of being given over to collections does not look pretty on a credit report. If you are looking to get a big loan or buy a house, try to take care of any situations involving a collections agency first. Over time, the scar of being put in collections should start to fade, but not until you pay off the debt and start rebuilding your points.
10. Bankruptcy
    Filing bankruptcy is never fun to go through, and rarely good for your credit. If you have or need to file bankruptcy, be prepared for a plummet in your score. There are some options to help you avoid bankruptcy all together.  Bankruptcy should only ever be used a s a last resort.  However, bankruptcy can be the best option for someone who realistically has no way of ever paying their debt down.

Does your Credit Report Card have room for improvement?

Now that you understand what can help and hurt your credit score, what does your credit report card look like?  If you are struggling to get your credit "GPA" up, you might need a tutor.  The Solutions Specialist at Debt Relief can help you work though your credit issues and find a solution tht best fits your needs. 

1-877-492-4109

In this economy, Americans are up to their eybrows in debt.  In fact, the average American household with at least one credit card has over $10,000 in credit-card debt, and the average interest rate runs in the mid- to high teens at any given time.

Some debt is good

Borrowing for a home or college usually makes good sense. Just make sure you don't borrow more than you can afford to pay back, and shop around for the best rates.

Some debt is bad

Don't use a credit card to pay for things you consume quickly, such as meals and vacations, if you can't afford to pay off your monthly bill in full in a month or two. There's no faster way to fall into debt. Instead, put aside some cash each month for these items so you can pay for them with cash when the time comes.

Controlling your debt is possible if you start by getting a handle on your spending.

Most people spend thousands of dollars without much thought to what they're buying. In order to get a handle on your spending you need to creat a BUDGET. Write down everything you spend for a month, cut back on things you don't need, and start saving the money left over or use it to reduce your debt more quickly.

Get your debt paid off!

Now that you have gotten a handle on your spending, it is time to get your debt paid off.  The key to getting out of debt efficiently is first to pay down the balances of loans or credit cards that charge the most interest while paying at least the minimum due on all your other debt. Once the high-interest debt is paid down, tackle the next highest, and so on.

If you can't keep up with your payments or you have extremely high interest rates, you should consider a Debt Management or Debt Settlement program.

These programs will help you eliminate your debt quickly while saving you money!

Don't fall into the minimum trap

If you just pay the minimum due on credit-card bills, you'll barely cover the interest you owe. It will take you years to pay off your balance, and potentially you'll end up spending thousands of dollars more than the original amount you charged.

Watch where you borrow

It may be convenient to borrow against your home or your 401(k) to pay off debt, but it can be dangerous. You could lose your home or fall short of your investing goals at retirement.

Get help AS SOON AS you need it

If you have more debt than you can manage, get help before your debt is too far gone. There are reputable debt counseling agencies that may be able to consolidate your debt and assist you in better managing your finances.

DEBT RELIEF CAN HELP! 1-877-492-4109

Worrying about your debt won't make it go away, but for millions of Americans the stress from deepening debt is becoming a major pain in the neck - and back and head and stomach! But stressing about your debt won't make it go away. 

You MUST make a Debt Payoff Plan! 

With so many different debt elimination methods available these days, it can seem like a tough task getting started and following through with a plan that will actually get you out of debt.

The answer is simple.  You just have to take one step at a time.  In this post I’m going to cover a simple debt elimination plan that will have you on your way to getting debt free in no time at all!

Clean Up Your Budget

The first thing you need to do is clean up you budget or if you don’t have one get started now.  A budget will help you get things in order and let you know how much money you are spending each and every month and how much you are saving.

What you are really looking for is how much money you actually have left over at the end of the month.  Having an extra $100 set aside for your debt elimination plans is all you need to get started.  If you don’t have any extra money left, you may have to eliminate some things from your budget, get a part time job to help out, or find a way to reduce your monthly minimum payments while still eliminating your debt. (such as Debt Consolidation or Debt Settlement: see below)

Get Your Debt Together

Next you need to get all of your debts in order.  To do this grab all of your creditor statements.  And put all of your debts in order, so pull out a blank sheet of paper and list all you debts from the lowest balance to the highest balance.

When you have this done your mortgage should be listed as the last debt to be paid off and something like a credit card should be the first thing you pay off.  The reason for this is because I want you to see results quickly by paying of the debt with the lowest balance.

Eliminate The Debt

There are several ways of going about eliminating your debt.  However, what you must stop doing is only paying the minimum payments.  If you don't, you will end up paying back at least three times what you originally owed and will spend decades paying back the debt.  Here are three of the best debt elimination options available to you:

• Debt Consolidation or Debt Manegment - In this program, your Debt Consolidation or Debt Management company will work with your creditors to reduce your interest rate, eliminate fees, and lower your monthly payment.  Another plus to this type of program is that your payment will stay the same over the course of the program which will get you out of debt in just 3-5 years on average.
• Debt Snowball Method - This method basically involves listing your debts from smallest balance to highest and paying them off in that order.  You will always make the minimum payment on each debt, but will also contribute any extra money you found in your budget to the smallest debt.  Once that debt is gone, you use the money you were paying on it to pay in addition to the minimum payment on the next debt.  If you can find a little extra in your budget, this is a great plan.  You might also consider the "Debt Avalanche" which uses the same principle. However, instead of paying off the smallest balance first, you pay off the debt with the highest interest rate. 
• Debt Settlement - This is a great plan for anyone who needs to drastically reduce their monthly payments or for someone who is already significantly behind on their payments.  Your Debt Settlement company will negotiate with your creditors and settle your accounts for usually 50% of what you owe.  (sometimes even less)

If your looking more info on creating your Debt Payoff Plan, one of our Debt Solutions Specialist would be happy to anwser any and all of your questions.  Please feel free to email info@debtreliefnw.com or call us at 877-492-4109.

photo by: BLW Photography