Ways To Save For Your Vacation In A Depressed Economy

Friday, December 28th, 2012

Ways To Save For Your Vacation In A Depressed Economy

Everyone needs a vacantion once in a while. The daily grind can really wear us down and sometimes we simply need a break. But as much as we may need a break, sometimes it simply is not possible. Many people struggle with their finances, living paycheck to paycheck and vacations are often extremely pricey. So how do you get the vacation you need when you can not afford it?

Well, there are four great Ways to save for your vacation. By utilizing the following four strategies you can work to save up enough money to go on that vacation. If you do it every year you can almost assuredly take a yearly vacation, giving you something to look forward to.

1. Make use of automatic transfers. You can set up a savings account that will be your official vacation fund. Set it up so that as soon as you get your paycheck, a portion of that (however much you deem you can afford) is automatically transfered to this account. The goal here is to forget it even exists, ask your bank to remove that account from your online interface and just leave it be. The last thing you want is to dip into that fund every time you need a little cash.

2. Work on credit card debt. A lot of people struggle with credit card debt, but that also gives them some more Ways to save for your vacation. Pay the minimum monthly payment on your highest card first, then put all the money you can afford to paying off the lowest one. Once you pay off that low credit card, you can then split the money that was going towards it’s monthly payments between your savings fund and paying off other credit cards.

3. Use your raise. This strategy is not applicable to everyone, but it can be a huge lucky break. If you get a raise, take all that extra money and put it directly into your savings account. You have managed to go on your old paycheck before, so just keep doing so and use all the money you get from your raise to buy yourself a nice, relaxing vacation.

4. Payroll deductions. A lot of people simply are not good for money, they simply can not save it and end up spending it no matter what. So if you do not trust yourself, you can always turn to the government to hold your money for you. If you are breaking even on your taxes every year, then you can pay extra so that at the end of the year you get a nice big check to use towards your vacation. This only works if you were breaking even on your taxes, if you were behind that money will simply go to catching you up.

There are many more Ways to save for your vacation if these ones do not work out for you, but at the bare minimum these strategies can give you some ideas on where to start so that you can save up for that vacation you deserve.

Credit Card Fees-Lead To Staggering Amounts Of Debt

Monday, December 17th, 2012

Money is tight for a lot of people, and most of us are forced to live paycheck to paycheck. We also tend to rely on things like credit cards to get us by. This has led to staggering amounts of debt for thousands of people. Credit card debt is one of the primary forms of debt in America because of this. So if you are one of the people in debt, you know how stressful it can be and how much you wish you could claw your way out.

Dealing with all the Credit Card Fees, the endless phone calls from your creditors, the stress of knowing that most of you money is going to just paying off these things, all the while forcing you to continue use them. It is a vicious cycle that can be exceptionally difficult to break.

But while it is difficult to break, it is by no means impossible. In fact there are some fairly simple tips you can use to slowly pull yourself out of the hole of credit card debt.

The first step in getting out of debt is to create a budget. Look at how much money you get every month, then look at how much money you spend every month. If you sit down and look over your expenses, I am sure you will notice a lot of frivolous things that you can cut out to help yourself with those Credit Card Fees. Something as simple as getting a coffee in the morning can really add up.

If you can cut down these unnecessary expenses, you can then take that extra money and apply it to your debt. It may be tempting to throw it at your largest debt first, but this is the wrong move. We need our little victories, and it is also a snowball effect. So if you have multiple credit cards and are in debt with each, look at the one with the least amount of debt.

If you take that money you are saving and put it all towards paying off the lowest credit card, you can make some serious progress and actually pay it off quite quickly. This will give you that victory you need, it will boost your morale as you can see you really can claw your way out.

But that is only the beginning. From there you will want to apply, not only the money you had been saving by cutting back on unnecessary expenses, but also the money you are saving by not having to make payments on that credit card. Now you will have a lot more money every month that you can apply to the next lowest debt.

It is a rinse and repeat process from here on out. You just take the money you save by paying off a card and apply it to the next highest one. It will take a long time to knock out those Credit Card Fees if you are deep in debt, and you may need to do some extra work to get there. But by utilizing this method you can make some serious headway in your fight against your debt.

Getting Out Of Credit Card Debt

Thursday, November 22nd, 2012

If you’re working at getting out of credit card debt, it can feel like you’re putting in a lot of effort but not getting anywhere. However, every effort you make counts, and every dollar you put toward your debt is a small step in the right direction.

There are also some things you can do to make the process of getting out of credit card debt go faster. If you’re in over your head and your best efforts don’t seem to be enough, try one of the strategies below to make your debt load a little lighter.

Debt Settlement

One way to reduce your credit card debt quickly is to negotiate a debt settlement. Debt settlements are generally reserved for people who cannot make their monthly payments and don’t have assets to draw from. It’s a drastic measure, but one that is sometimes necessary for getting out of credit card debt quickly.

Negotiating a debt settlement can mean that you approach your credit card company, explain your situation and ask them if they’re willing to work out a plan with reduced repayments or even a reduced balance for you. Sometimes, it’s as easy as that. You ask for a settlement and they lower the amount you owe them. Other times, they will refuse your request.

If you’re working toward getting out of debt and your credit card company refuses your initial request for debt settlement, a non-profit debt counseling service may be able to help. Because they are non-profit, they won’t exploit your situation, and they have experience working with difficult credit card companies.

Note that there are downsides to a debt settlement. For one thing, any amount of money that the credit card company takes off your bill will be credited to you as income for the year. This means that you will owe taxes on that amount. While this can still be better than the debt you faced before, make sure that debt settlement is right for you before you pursue it.

Debt Consolidation

Debt consolidation is another option for making the process of getting out of credit card debt go faster. It is a good choice for people who can make their minimum monthly payments but aren’t making much headway towards paying off their debt or who would benefit a lot from having a lower interest rate or a lower monthly payment on what they owe.

While debt consolidation doesn’t wipe out debt, it does cover all of your debt with one loan, which you then pay off at a lower interest rate and, therefore, a lower monthly payment than if you pay off each account individually. Thus, it makes getting out of credit card debt go faster, because you can put any extra money toward the balance of your debt and not toward monthly payments that you can barely make.

Whether you choose debt settlement, debt consolidation, or another path all together, remember that getting out of credit card debt is possible and that there are ways to make it go faster than you might expect. Your dedication to lowering your debt will eventually pay off and you will be able to live debt free.