Staying out of debt takes a few simple tools.

As I mentioned in Part 3, an important aspect of debt consolidation is not to acquire any new debt while you are paying off your current debt.

Sure, some situations may be unavoidable, but there are a few things you can do to help you be successful at getting and staying debt-free.

Make a budget

We’ve all heard that this is a good idea. We’ve all read tutorials on how to do it: gather all your bills, write down all your expenses, come up with a total, set limits, etc. But, if we were the type of people who did things like that, we would probably not be in this situation.

But let’s think about this: you have just gotten your debt consolidation loan approved. All those pesky bills have been turned into one simple bill that you must pay every month. Now is the time to take a big-picture look at your budget.

Not a fortune-teller

The part of the “budget-writing” tutorial is that it asks you to determine how much you will spend on things like entertainment, food and other unpredictable expenses. I have a more simplified version of budget-making.

Yes, gather all your bills. Make sure you know how much your fixed expenses are every month. Add up your payment on your debt consolidation loan, your rent, phone, electricity and any other bill that you pay every month.

Be prepared

After you see how much you are spending every month to survive, buy only what you need. Food, toiletries and sometimes clothing are examples of what you need. Going out to eat and designer shoes are examples of things you do not need.

After you have paid your bills and gone to the grocery store, stop spending. Save your extra cash for those unexpected expenses that got you here in the first place.

A meager existence?

It can be extremely difficult to only spend money on necessities. But remember that it’s only for a little while. When you have finished paying off your debt, you will have extra money to play with again. If you are very careful with your spending, you might even have a savings account built up. But until then, buckle down. And cut up your credit cards.

One of the most important investments a person can make in their lifetime is an education – it can keep you from needing payday loans.  However, one of the biggest hurdles that people face when contemplating matriculation at an establishment of higher education is perhaps the biggest hurdle that you can face when it comes to actually getting a degree, and that is the financing.

A two year degree at a community college can run you a few grand per year with ease, and four year universities will double those tuition costs.  Oh, and we’re only talking about public schools.  Private schools – forget about it.  To be able to pay for private university you’d have to work full time to be able to come close to affording it, and it would have to be a job so good that you wouldn’t need the education to get a better job in the first place.

So, where does that leave most of us?  In debt with student loans, and possibly credit cards to boot is where it leaves us, but that is considered a good debt – it virtually ensures that you will earn a decent living.  So – how to minimize those costs, or at least offset them becomes the problem.

Some tips and tricks

Well first off, don’t get hooked into using a student credit card.  That leads straight down a bad road, and it just isn’t a good idea to use those things very much anyway.  You’ll be forced to give up your food and shelter habits to afford the payments, and you definitely can’t look at payday loans as an option.  Instead, here are some good things to do about those student loans.

Paying some upfront:

Student loans all come in a state of deferment, meaning that you don’t have to make any payments until a particular time period after graduation, or whenever it is that you leave school.  You can arrange to make some early payments so that you can pay down the balance before the interest even starts accruing, and lower the balance.  Even if you only happen to pay a thousand dollars in total before you graduate, that is a thousand less dollars in debt that you are – which helps.  The average student walks away with about $20,000 in debt on the average these days.  How can it be done?  As it turns out, very easily.

Keep a change kitty:

Save the leftover change that you get from your cash purchases, and then at the end of every month or two, cash it in and put it towards a loan payment.  May not add up to much every time, but it will add up over time.

Donating plasma:

Donating blood plasma is a college student tradition.  Those who have never resorted to this valuable public service (it saves lives, and you get paid for it) have never really lived the student life.

Every Little Bit helps

Make every payment on time for the first 48 months.  If you can go 2 years without a missed, deferred, or late payment then they usually will knock a few interest percentage points off the top, and that will save you over the long run.  A four year degree will serve you well, and you may never have to think about payday loans as long as you live.

Many people would rather take a trip to the dentist than draw up a budget. But as tools pop up on the Internet, the process becomes much easier. Here are a few online tools that will help you manage your money.

Mint.com

Image via Wikipedia

Aaron Patzer was deemed a hero by CNNMoney for inventing Mint.com, an online budgeting tool. The twenty-something built the site with a goal in mind: turn the savings rate for people younger than 40 positive instead of negative.

The site was named a top pick in Money Magazine, and the service is totally free. The site has fun options, such as comparing your spending with other people from the same city. It has 600,000 users whose average age is 31. Patzer wanted to help younger people because they are most likely to have student loans and other debt, and they are less  likely to save.

The site is quick and easy to use, and it offers advice on ways to make the most of your savings.

MyGoals.com

Another useful tool for people seeking money management help is mygoals.com. One of the goal categories users can pick is personal finance. From there they can choose to set goals related to investing, debt and expenses, major purchases or income.

The site sends e-mails to users to remind them of what they should be doing in order to achieve their goals. And the site handles all types of goals, not just financial ones. Other categories include health and fitness, family and relationships, career and recreation and leisure.

No Fax Payday Loans

Getting no fax payday loans at personalmoneystore.com is easier than ever. This online application lets you apply for payday loans from the comfort of your own home or office. You don’t have to fax any paperwork; the entire process can be completed with just a computer or a phone.

And now, with Personal Money Store’s loan calculator, you don’t have to worry about figuring out how much your payday loan will cost. Just plug in the numbers, and voila, you can view the exact price of your payday loan.

CASH

If you need financial tools that are geared toward business instead of personal finances, visit financialtools.com. Financial Tool’s program, called CASH, serves many different functions, including risk assessment and help with decisions that will increase profitability.

Users of CASH boast that the service is easy to use and provides them with all the financial tools they need.

YoungMoney

Another site geared toward young people is youngmoney.com. The site features articles on money management, surviving on a small salary and taking advantage of student discounts.

Some other helpful articles were about avoiding scams and understanding insurance. The site is geared toward helping young people understand money and form good habits before accruing a bunch of debt.

The kitchen sink

So there you have it, from no fax  payday loans to helping you achieve all kinds of goals, the Internet is the place to go.

“SPAM, SPAM, SPAM, SPAM…”

Difficult times require drastic measures

Dark economic times has placed a greater than normal burden upon American families. In order to continue to put food on the table while still being able to meet responsibilities like rent, utilities and insurance, some families must drastically reassess how much they spend on day-to-day expenses such as food.

Hormel steps in to fill the breach with pork product

SPAM and Dinty Moore stew and chili will be hitting the shelves at grocery stores across America in greater numbers as the demand for cheaper meals increases. According to parent company Hormel’s CEO Jeffrey Ettinger, the company has been “really pushing capacity limits” at its canned food facilities and has had to add an existing production facility to meet demand.

On the home front, Americans found it difficult to buy the meat they needed, because so much of it was being used to supply the troops. SPAM proved popular with civilians as well, since they could purchase it with their green ration coupons. Its low cost and long shelf life suited the times, as did Dinty Moore stew and Hormel chili. Much like faxless payday loans today, these products filled a definite consumer need.

63 years later, we hit the SPAM again

Here’s your three-step SPAM program:

• It’s cheap, it’s edible, you can feed your family with it in an emergency… and it’s carvable!

• Here’s a guy who ate SPAM three meals a day for 30 days – BECAUSE HE COULD!

• Why not play a SPAM game?

OK, one more… for those of you who know SPAM thanks to Monty Python, enjoy!

Here’s something else that’s helpful when you’re on a budget

Whether you like SPAM or not, it’s obvious that if you need to put a cheap meal on the table, SPAM is a viable option. Another thing that can help your budget out when you’re hit by surprise expenses during these tough times is payday loans. They’re quick, convenient and much less expensive that paying a penalty due to a bounced check or late bill payment.

Atlanta Falcon quarterback "Michael Vick" pleaded guilty to a state dogfighting charge

Making a comeback can be tough, but with payday loans, your finances can stage a successful comeback. People make mistakes, but it is possible to rebound from past blunders. Celebrities and athletes try to comeback from career-ending mishaps all the time. So who’s to say that your past financial mistakes should keep you down? If you’re struggling to pay your bills, payday loans can help you in the gradual process of getting back on track financially.

A Comeback for Michael Vick?

Former Atlanta Falcon quarterback Michael Vick pleaded guilty to a state dogfighting charge today. Vick’s plead could mean early release from prison and an earlier return to the NFL—if any team is willing to take him back. Vick is currently serving a 23-month sentence, and is scheduled for release in July 2009. Today’s plea is important because it resolved the rest of the charges against Vick, which is a federal law requirement to move into a halfway house.
Right now, Vick’s legal team and agent are focusing on getting him out of jail and reunited with his family. However, the obvious next step would be Vick’s reintroduction to professional football. Vick is still under contract with the Atlanta Falcons, but Falcons owner Arthur Blank adamantly stated last month that Vick would never wear a Falcon uniform again. The question remains: which team would be willing to take a risk on Michael Vick? The answer is yet to be seen, and Michael Vick fans will have to wait at least until next season to see if there is an NFL franchise brave enough to reinstate the three-time Pro Bowl quarterback.

Livestrong

Livestrong

Another elite athlete trying to make a comeback is Lance Armstrong. Armstrong already made a miraculous comeback from testicular cancer, but in September, Armstrong announced that he will be making a return to cycling. Armstrong hopes to add to his collection of seven yellow jerseys by winning the Tour-De-France once again. The odds are against Armstrong as he is now 37 years old and has been out of the sport for over three years. Most cyclists peak around age 34, and the oldest person to ever win the Tour-De-France was 36, back in 1922. However, Armstrong has faced tremendous odds before, and if anyone can make a comeback in the cycling world, Lance Armstrong will be the one to do it.

A Sure Thing

The futures of Michael Vick and Lance Armstrong hold a great deal of uncertainty—two athletes vying to make names for themselves once again in the competitive arena of professional sports. No one can determine if Vick and Armstrong will make successful comebacks or if Vick will even get another shot in the NFL. However, you can be certain that not all is lost when it comes to your finances. If you’ve been out of the game financially, payday loans can be a huge asset to your financial health. It’s a sure thing that payday loans can help you whip your budget back into shape to make a successful financial comeback.

"Keeping Up With the Joneses" is not necessary

America needs to stop “keeping up with the Joneses” because they are not a real family, and if they were, they would be broke and in desperate need of payday loans and credit repair. In fact, the Joneses to which the common phrase refers to are comic strip characters. In the early 1900s, cartoonist Arthur Momand created a comic strip, and the Joneses were neighbors of the comic’s main characters. Although frequently mentioned, the Joneses were never seen. Those Joneses may have had nice things, but they certainly didn’t have credit card debt.

Keeping Up With the Joneses

The American tendency to “keep up with the Joneses” has developed into a horrible habit of trying to satisfy an insatiable desire for material goods. Your want for material goods is limitless, and you cannot afford to quench your every desire. Yet, if your neighbor gets a new car, you need a newer, better car. If your neighbor builds their kids a jungle gym, you have to build your own kids a bigger, cooler jungle gym. Regardless of whether or not you can afford it, you make the purchase with or without payday loans. Americans need to throw out the mentality that having all better, more expensive possessions than their neighbors means they will have a higher socio-economic status. This way of thinking has to stop because American spending is out of control, and Americans are falling deeper and deeper into debt.

Credit Card Debt

Why keep trying to one-up the Joneses if it means your credit card debt is going to be bigger than theirs, too? Buying things you can’t really afford certainly won’t move you up on the socio-economic ladder, especially when your debt starts to catch up to you. People across the nation are feeling the affects of the credit crunch, and credit card debt is at an all time high. In 2002, total credit card debt in the U.S. was $60 billion. Between 2002 and 2005 that figure jumped to $735 billion, and by 2007 the average credit card debt per household was $8400. Over 40% of households spend more than they make. If your household falls in that 40% category,it’s time to take a look at your spending habits and reevaluate.

Credit Repair and Payday Loans

Americans are so accustomed to making purchases with credit. The American addiction to credit cards and material goods is ravaging the U.S. financial system. It is no wonder that America is facing a financial crisis. By the end of 2007, the total consumer credit debt reached a staggering $2.5 trillion. 2.5 trillion dollars! That number isn’t even comprehensible.

Chances are, you might feel like your debt total isn’t comprehensible either. You just can’t wrap your head around the thought that you owe so much money. One of the first and most important steps you can take to overcome your debt is making a budget. Stop living outside of your means, and start spending less than you make. A budget will help you accomplish reasonable spending. After you create a budget, you should take steps to improve your credit. There are credit repair resources available and payday loans to help boost your budget at your disposal. When you get credit repair help and eliminate your debt, the Joneses will be jealous of you.

The current unemployment rate in the U.S. is 7.6%

Unless you’ve been living under a rock, you know that people have been taking out mortgage loans and personal loans, and installment loans at a phenomenal rate. You probably also know that the U.S. economy is struggling, and we’re in what most people would consider a recession. In fact, the under-regulation of the mortgage industry has had a lot to do with the current financial crisis. The stock market has been a roller coaster of record lows and record recoveries, interest rates have been cut multiple times, and a number of major banks have been bought out or gone out of business.

Feeling the Effects

No matter what industry you’re in or at what level you are within that industry, I can guarantee that you have somehow been affected by the economic downturn:

The nightmare effects at the pump

Gas prices are finally coming down, but summer at the gas pump was a nightmare. Groceries cost an arm and a leg, especially if you’re trying to maintain a healthy diet. It’s easy to see why so many people choose the value menu at their favorite fast food restaurant. Those that invest in stocks have lost big. In fact, it’s been speculated that the safest place for your money right now is under your mattress; it will be safer there than in a bank or in the stock market. I don’t know if I’d go so far as to make my mattress my piggy bank, but the idea has been mentioned. And most significantly, you or someone that you know has probably been laid off from a job.

The “It Can’t Happen to Me” Syndrome

Americans have developed a strange sense of invincibility. Regardless of the warnings we receive about potential misfortune—home foreclosures, cancer, the side effects of prescription drugs, natural disasters, unemployment—we always have the same response: “It can’t happen to me.” What an unrealistic thought process; we refuse to accept that anything bad could happen to us, until that something actually happens. It can happen to you.

For thousands of Americans, that “something” happened, and that “something” was unemployment. There were massive layoffs all over the country this year. The Bureau of Labor Statistics reported that the number of layoffs between January and September 2008 were the highest they’ve been since 2003, and the nation’s unemployment rate jumped from 4.7% last September to 6.1% this September. You didn’t think it could happen to you, but you (or one of your co-workers) have probably lost a job this year.

Basic Economics

There is hope. As economic history has proved time and again, the economy always recovers. Sooner or later, the U.S. economy will pick up, and the unemployment rate will drop. Until then, you should budget and spend your money wisely. If you need financial help to pay the bills or to cover emergency costs in this turbulent economy you can always utilize installment loans. If you have a steady source of income, which includes an unemployment check, you are eligible to receive installment loans to help you out while we wait for the economy to get back on track.

Holiday Juggle = Financial Stress

This holiday season, all I can think about is money, and that includes the possibility of taking out a cash advance. Halloween is over, and it’s November, so I feel like I can rightfully talk about the upcoming holiday season. The holidays are a special time of year, but with so much stuff going on, the holidays can also be very stressful—especially when it comes to money.

Are You Prepared?

The holidays require a lot of preparation. I’m definitely not one of those people that does my Christmas shopping in July or October. I typically wait until the middle weeks of December to finish up buying gifts. I may not have any of my Christmas shopping done, but I have been preparing for the holiday season by saving as much money as possible. I’ve cut back on restaurant dining, I’ve been skipping my morning latte, and I’ve been keeping track of how much money I charge on my credit card each day. I even got a part-time waitressing job in early October to supplement the income from my day job.

There's much to prepare for during the holidays

Preparation is necessary to deal with the financial stress of the holidays. There are so many costs associated with the “most wonderful time” of the year. I want to have extra money this time of year so I can entertain my friends, afford gifts for my closest friends and family, buy a pretty Christmas tree, and travel across the state to visit my family. Even then, I’m going to shop frugally—I might even make most of the gifts I give. And I bet my pretty Christmas tree will only be 3 feet tall like Charlie Brown’s tree.

Little Luxuries

Unfortunately, all the things I’m saving for are little luxuries; I still have to be able to afford the usual monthly expenses like utilities, gas, and groceries. I know my heat bill is going to skyrocket once the snow hits the ground! So despite all my preparation, I still feel under-prepared. What if something unexpected happens? If any surprise costs get thrown in the mix, my budget will be thrown completely off-track.

No Help from the North Pole

"Santa won’t be able to give me cold, hard cash..."

I know Santa Clause creates miracles for families every Christmas, but I don’t live on 34th street. Santa won’t be able to give me cold, hard cash if I run into emergency expenses. That’s why I know I can get a cash advance if I need to. I hope that with all my budgeting, preparation, and sacrifices I will have enough money to make it through the holiday season. If not, I know that I can take out a cash advance to help me until I get my next paycheck.

Maintaining Perspective

It’s easy to get wrapped up in the material side of the holidays. This whole post is discussing how stressed I am about money. Although my financial concerns are legitimate, I need to maintain the right perspective. The holidays are about spending time with friends and family, and that should be my focus. Bills, travel, a cash advance, and other financial issues are things I need to keep in the back of my mind.