Couples need to make debt relief a priority discussion when considering marriage. A new national survey for Fidelity Investments is showing some interesting results. Many couples aren’t in agreement on basic financial issues and don’t even discuss finances in any depth. Here are some of the topics those questioned stated they didn’t cover with their significant other:

• When is each person planning on retiring?
• How much money do they need to save to retire on time?
• What types of debt will be considered priorities to pay off?
• How much insurance coverage is each expecting to have?
• What budget will they follow and for how long?

Oddly enough the same poll was given two years ago and there has been a general decline in communication, although the economy has drastically turned for the worse. For example, two years ago 79percent of couples stated they didn’t agree on retirement plans, including the time to retire or if they would continue to work after retirement.  This year’s survey showed that same number is up to 82 percent. Other numbers in the most recent survey follow suit.

An expert predicted the results

Nicholas Yrizarry, a financial adviser in Virginia, stated that he thinks the results of the most recent survey are accurate and logical. His belief is that the recession has pushed people to focus on “putting out fires, dealing with debt relief, worrying about interest rates, credit card debt, over-mortgaged homes and job insecurity.”

Although reason suggests they should be making financial discussions a priority, most aren’t. Yrizarry added, “You’d think it should raise some eyebrows, and they would say we’d better start thinking about this, but actually they just shelve it even further, defer the inevitable.”

The survey

The 2009 survey shows that only  45 percent of couples make decisions together on daily household management of finances like budgeting and expense payments.  The norm is for one person to take the helm at finances.  Amy Gunnerson of Pittsburgh, Penn., a agreed with her husband that she would pay bills. “My husband doesn’t want a part in the daily decision making. He’d rather focus on work, while I decide what the priorities are. …It works for us.”

President of Barber Financial Dean Barber said this is typical of families because normally one spouse is “adamant” about finances while the other “really could care less. … It makes it very difficult, though, and puts a lot of stress on a marriage.” Experts agree that this isn’t the most beneficial way to handle life because when one person has different expectations, there could be potential problems.   Also, if the family dynamic changes, say with divorce or death, the financially passive spouse is left in the dark.

Discussions about retirement are also put on hold by 62 percent of couples.  Again, this could potentially cause problems if one plans on retiring early, but there aren’t enough finances to maintain their lifestyles.  Financial Planner David Summerhill of Summerhill & Franke stated, “Retirement planning isn’t just about an amount of money. It’s about having an age when the retirement is going to happen for each person, having a plan to make it happen and having a contingency plan if it doesn’t.”

Financial discussions

One of the most surprising results of this year’s survey is that only 15 percent of all couples believe they could handle full responsibility for household finances if necessary.  With these kinds of numbers it’s imperative couples begin having dialogues about finances.  Retirement planning, debt relief, savings goals and investing options are all topics that need to be discussed and decided up on periodically throughout a marriage.

Ever wonder how you can rack up such a huge credit card debt so fast? Many people tend to use their credit cards at grocery stores, mostly buying convenience foods. Why the lure of these items? Why is it that people would rather spend money on pre-made convenience foods that they could make for themselves for a fraction of the cost? For one reason, these foods make a hectic life a little easier. Many baking mixes, for example, brag on their packaging, “Just add water,” while other mixes, such as stuffing, say, “Ready in 5 minutes.” Is the lure of these foods so great that we would willingly go into debt just to shave off a few extra minutes of cooking time?

The pull of these products is mainly due to advertising. When you see a commercial for a popular pancake mix—you know the one where the mom is shaking up the mix and water in the container—what is that message telling you? That it’s easier to buy their products versus putting an extra three minutes of making it yourself. The truth of the matter is, if you were to buy the ingredients and blend them yourself, you would get a better tasting, cheaper product than you could buy on the shelf—and for pennies.

Healthier and Cheaper Alternatives

Staying on the pancake mix idea, you could blend the dry ingredients, using whatever flour you want, such as whole wheat or grain versus the highly refined flour used in the commercial mixes, and store them in food storage bags until you are ready for it. Then, when you want to make pancakes, you would simply place the desired amount of your homemade mix in a bowl and add in your wet ingredients. It’s pretty much the same process you would go through with the commercially made mixes.

Not only are these homemade mixes cheaper, they can potentially be healthier for you. It really depends on the ingredients you use. Instead of using refined flour and sugar, you can use a whole grain flour and Stevia or Xylitol. Or, save the sweetener for when you actually mix your wet ingredients in, especially if you want to use honey or molasses instead of a dry sweetener.

By making your own mixes, you know exactly what is going in your food versus the commercially prepared mixes. But the best part of making your own mixes is that they come out to cost 10 times less than the store-bought counterparts. Say a box of pancake mix costs $2.79 and you can only get one batch out of the box. That’s an expensive batch of pancakes. Now, let’s say that you can get an entire bag of flour for that much, and you only use 2 cups. This option is much less expensive, saving your credit cards for more pressing emergencies.

There are other homemade convenience foods that you can create, such as cake mixes, pudding mixes, syrups, sweetened condensed milk, and so much more. There are no limits to how many convenience foods you can make at home. The key is to figure out what your favorite convenience food has in it, and start experimenting. Or, you could just search the internet for recipes to get you started. The sky’s the limit!

Control What You Eat…For Less

When you make your own homemade convenience foods, you are able to control what you are eating, for much less money, and you save how much you are spending on your credit cards. Because if you can create your own mixes, you can begin living within your budget and relying on your credit cards less. While saving on your credit cards, you can also save on your waistline. By creating your own homemade convenience foods, you can put in healthier ingredients, which when used, you can then begin to bring your body’s health into balance. When everything is balanced, you will then begin to lose weight. It’s all part of the process—you start living frugally, and you lose weight in the process! How cool is that?

Commercialism is everywhere, and one can’t seem to survive without being expected to run up credit card debt. It’s the “gotta have it now” syndrome, and it is ruining your health. Think you are immune to this syndrome? Let me ask you: do you have at least one credit card? Are you depending on payday loans to get you through the month each month? Well, I am afraid to tell you—you have the syndrome and it is going to eventually wear you down due to lack of sleep and an abundance of worry about your finances. Following are budget busters that will ruin your credit every single time.

What are budget busters? These are the things that are advertised on every single television and radio station…on every single website…and in every single magazine. It’s those items that are “hot”, “new”, and “different”. Those items that you see everyone buying these days without understanding why they would buy them, and how they can afford them. Things such as Blackberries, 3G cell phones, or the latest television technology. You know the type—hot one day, and in the trash the next. But these “gotta have it now” items are what makes you throw caution to the wind and create huge credit card debts. These are the items I call “Budget Busters”, because they bust your budget in a big way. Some examples of these budget busters…

Real Estate

Investing in real estate is a good thing if you do it correctly, but unfortunately, not many people do it correctly. Have you ever watched some of the real estate buying shows on HGTV? If you have, then you know what I am talking about. Many of those people on the shows appear to be very greedy—they want all of their wishes to be met, and if even one thing is missing, then they keep searching. Often, their searches lead them to the very top of their budget, and some actually go over their budget just to get every item on their wishlist. Credit cards become the new type of cash for many of these couples.

Examples of this include several young couples, or even single people, who buy three or four bedroom houses with a two car attached garage in an up and coming neighborhood, and you know they are going to be sacrificing a lot just to get this big of a house. Why are they buying such a big house when they are just starting out? Whatever happened to the “starter house” that many young couples bought many years ago? Starter houses were just that—a house to get them started on the path of home ownership, and a way to get their feet wet on learning to make wise real estate decisions. Budget savers would actually go for a starter house that has maybe two bedrooms, and a bathroom, with no garage. This is budget busting at its most extravagant.

Auto

New cars, while they smell great and run great, they depreciate by half in the first year. Buying a new car is the worst budget buster you can make, because you will never be able to get that much money back when you either try to sell it or trade it in for a new vehicle. Buy a used car that is a few years old, and you will save a lot of money this way.

By avoiding these budget busters, you will not only be able to cut out your credit cards, but you will also be able to save money for your future retirement. It’s worth it to settle for less until you are able to get what you want.

They gave me a mulligan on my bill

It was the weekend before a big pro-am golf tournament in Waukegan, and I had been honing my game for months. I was so psyched, I felt like I could have given Tiger a run for his money. I was hitting every green, going up and down like a pro and putting like a fiend. My buddies were amazed; Hank even asked me when I was going to Q school. That’s how good things were going. At the 19th hole, I even spotted my gang a round of brew. I couldn’t miss.

The night before tee time, I had a dream that I was being chased by a spider. This was a normal occurrence for me, as I suffer from arachnophobia. Apparently, I became so frightened that I jumped out of bed – while still asleep – and ran. I ran straight into a glass table and slashed open my left foot.

Spiders shattered my weekend

I’d plunked down all of my spare cash getting ready for the tournament, so I didn’t have anything left to pay for the ER bill. That’s where personal loans came in handy. I was able to apply from the hospital via phone, and the money was in my bank account by the end of the day. That’s what I call service.

And get this. Even though I have less than perfect credit, I was still able to get my hands on some quick cash thanks to those personal loans. Why don’t I have perfect credit? Well, if you must know, my golfing obsession has outpaced my ability to pay at times. I went through a rough patch where I had to file for Chapter 7 because my credit card debt had run amok. However, part of the appeal of applying for personal loans is that it didn’t matter what had been going on with my credit. My income met the requirement and I was approved for the money I needed to take care of my hospital bill.

A painless process

They performed what’s known as a “soft” credit check, or soft pull. The fact that I got personal loans appears on my credit for me to see, but it doesn’t appear in such a way that other potential lenders can see. Since it isn’t their business that I busted up my foot running from an imaginary spider, or that I needed personal loans to pay the bill, I don’t see why it should have to appear on my credit report. Do you?

All in all, I was bummed that I missed the tournament. But there would be other chances. Golf is in my blood. Next time, I’ll make sure there is no precariously placed glass furniture nearby. But if you find yourself in a spot like I was – maybe it’s a bill you need to pay to avoid having your electricity shut off. Better yet, perhaps it’s your little girl’s birthday and you need to buy a present at the same time that you’re being extorted by Columbian “coffee merchants” (long story, better left unsaid). Whatever the case, personal loans are a tool to dig you out of your sand trap. I’m glad I made that call. If you need a boost, don’t wait -  make the call!

Related Video:

Thanks to some unreasonable and unjustified bad press, payday loans have come to be regarded in some quarters as a bad thing for consumers. Basic principles of economic science say that if we, as individuals or as a nation find ourselves in sudden monetary troubles, more often than not, it’s because of some flawed practices and policies that get entrenched in our behavior over a period of time. Gradually, such behavior leads to a crisis and that’s what we face today. Payday loans are not the source of the crisis, they are a small but very powerful tool to help you in overcoming any such crisis in your life.

The purpose of payday loans

Payday loans are designed in such a way that they take care of the following extremely important aspects:

• Payday loans or short term cash advances are extended to you against your next monthly paycheck. So in essence they are meant to be very short term, so that you can take care of your normal or urgent expenses in a very convenient and easy way. In the present recessionary situation, with pay cuts and job cuts looming over all of us, this is not an extraordinary situation to be in.
• Also, considering the prevalent reluctance of banks to lend money for personal loans, due to a variety of reasons like the credit crunch or your bad credit ratings etc, payday loans in contrast provide an easy way to fulfill your monetary needs in these times when other sources of credit are drying up.
• So basically payday loans are designed to act as a shield; to protect you and your loved ones against any sudden monetary shock(s). In that sense they are nothing short of a blessing.

But where do problems start?

So you are asking, if payday loans are all that good, then what about all those articles that you have read warning you about the so called ‘hidden traps’ that lie in them? Well, the problem lies partly in our spending habits that have been ingrained into us from so many decades of prosperity. According to Demos, a firm that specializes in public policy research, the general credit card debt leapfrogged by 315 percent during the period between1989 to 2006. This shows that availability of easy credit has made us more and more dependent on it, playing havoc with our saving habits. This has got to change. Payday loans are not meant to make you dependent, they are meant be used as quick fix and easy solutions to your immediate fiscal problems. However, for that to happen, you must be responsible enough to plan and utilize your cash advance with good helpings of intelligence and accountability

What must you do with your payday loan?

• First and foremost, the amount of the payday loan that you apply for should correspond directly to your current needs for which you need cash. E.g. if you are short of cash to pay off your electricity bill, then take out a payday loan that can take care of this bill, nothing more.
• Plan your budget carefully, and see how you can make the best use of your payday loan. Payday loans could be very helpful in a number of situations like during a vacation, for home improvement etc., all depending on how you plan your budget. Also remember to plan enough savings so that you are able to pay off this loan with your next paycheck.
• It’s perfectly human to be tempted to spend the cash in hand according to your so called ‘instincts’. While it might be understandable to do so when you have a surplus of expendable cash, it doesn’t make sense to spend thoughtlessly on credit. Payday loans demand accountability.

Like any other thing in our life, payday loans could either be used or misused. They are a great blessing if we make a thoughtful and responsible use of them.

Personal loans have been a great financial support for many in the United States. And now, with the trouble credit cards can get you in, personal loans may be a greater support than ever.

The ease of credit cards

The concept of carrying cash everywhere you go has been taken over by the idea of using credit cards. Carrying a credit card is simple and is safer and less to carry around than carrying huge amounts of cash whenever you go. Unfortunately, using a credit card without keeping track of how much you’re actually spending could leave you penniless. We need to understand what can happen if we don’t manage our credit cards efficiently.

Some helpful tips

Here are some very useful tips when using credit cards. It’s important to follow these tips so that you can keep your credit cards on track and even help increase your credit score. The higher your credit score, the higher your reliability factor with some people.  But not with personal loan companies. Companies that loan personal loans typically don’t run credit checks so your credit score has no bearing on them.

1. Be aware of your credit limit

Be aware of your credit card limit and make sure you never charge more on your cards than this limit. Credit card companies charge enormous over-limit fees. Though the tendency to be bowled over by your desires dominates at times, it is important that you implement discipline to avoid being in duck soup later.

2. Select the most economical payment method

You can end up paying extra fees unnecessarily just because you opt for a particular payment plan. If you opt for a high payment plan that you end up not being able to pay, you will get charged late charges which can be added to your balance then you could even get over-limit fees. That’s a lot of fees. It is important that you find out the most economical method of making your bill payments. You can always pay more if you have a little extra money each month.  Be sure to get information on the different reasons that your credit card company may charge you extra. Once you are equipped, then you sure will make an efficient move.

3. Pay more than the minimum due

When you get your credit card bill showing you the outstanding balance you owe the company, it normally gives you the minimum amount you have to pay. If you don’t want to end up paying big interest amounts on your credit card, pay more than the minimum if there is that possibility. Lump sum payments from time to time will help you clear your balance faster. Your credit card company may also increase your credit limit on your card, for being such a good customer.

4. Pay on time

Don’t ever be late on a payment.  Not only will you get a big late payment charge, but you may even have your card cancelled. It may help to have auto-pay from your checking account directly to the credit card company.

5. Keep yourself updated

With the changing government policies and rules, every financial institution is prone to changes. You need to keep up to date on your information and the latest changes that could have taken place in your credit card company. This will save you unpleasant surprises. The same applies when you have taken personal loans with fluctuating interest rates.

6. Take out personal loans if needed

Opt for personal loans instead of using your credit card. You can use personal loans to make payments to avoid late charges or over-limit charges. You can also use personal loans to avoid worry over what charges the credit cards may be charging.

Another Round of Bad Shopping Habits

The third of the more notable books in Sophie Kinsella’s Shopaholic series is entitled Shopaholic and Baby, where main character and ultimate shopaholic Becky Brandon (nee Bloomwood) is happily married and pregnant with her first child.  Though the previous novels demonstrated how Becky was able to wean herself off her neurotic spending habits and learned a lesson or two in managing her finances, this new installment shows how old habits just keep coming back.  Specifically, now that she is with child, Becky resorts to even more justifications regarding her shopping rituals and credit card use.  For first-time mothers, it is easy to relate to Becky’s logic; however, wanting to give your baby the best need not run toward frivolity and envy.

Only the Best for Baby

Becky’s notorious materialism reaches greater heights in this novel, as she is pictured on the quest for the handsomest celebrity home with a shoe room to boot, as well as engaging the services of an A-list obstetrician.  Of course, her daily shopping sprees also move to a higher level—while hunting for the most coveted designer baby clothes and shoes, she just has to find matching outfits for herself.  Though her antics are fun to read and laugh at, it is difficult to believe that such a person exists—unless we’re talking about new celebrity moms like Nicole Richie or Jessica Alba.  Or maybe even Britney Spears a few years back, assuming she wanted to do things other than shaving her head.  A regular mom-to-be with enough financial resources would still be reasonable in adjusting to her new condition and preparing for that much-awaited arrival, yet might find herself in a bit of a situation born out of excitement and anticipation.  Doctor’s appointments, medication, and extra expenses to cover the baby’s needs are expected, which will continue well into the baby’s birth.  While plans for the baby’s future may already be under way, the immediate concerns may run over any set budget.

Happy Payday

Times like these don’t need to be stressful, and you certainly don’t have to deprive yourself or your baby.  For emergency expenses, or when the budget just won’t cover everything you need, take out payday loans.  But remember, the important thing here is to know your priorities; thinking Becky Brandon-style just won’t do.  You will have to list your priorities, and these should only include what you need, versus what you want.  Or, if you are confident that you will be able to pay off the loan realistically, you can very well add on a few extras and conveniences that will make the upcoming event a bit more special.

Payday loans are there to help you out, to make things easier, to assure you that some help is available when you need it—and only for good reason.  For today’s practical mom, baby’s arrival need not keep up with the hype of celebrity living—what is important is bringing a healthy baby into the world, whose future is hopefully bright and secure. As for Becky Brandon, here’s hoping that this new responsibility will give her a bit more character and reason, and that she will plan for her family’s future instead of her next shopping extravaganza.

Welcome back to the payday loans money blog at personalmoneystore.com.

Continuing on yesterday’s topic in the article, “Increasing Income , Decreasing Debt | Payday Loans Blog Resolutions for 2009,” today we will continue the topic by exposing habits we possess that keep us tied to or continuing the cycle of financial debt.

Where Does The Money Go?

Having trouble seeing where your money is going? Follow this excerice to save money and eliminate debt!

Living In A Financial Fog?

Apart from the larger monthly expenses such as your house and car payments, you may be a little foggy as to what consumes the rest of your income. “Where does the money go?” is a question that is usually indicative of poor budgeting and or spending habits.

Know Where Your Money Is Being Spent

If you don’t know where your moneys is being spent, it is difficult to see the areas where you can save.

For one month, devote yourself to recording each and every one of your daily purchases and expenses. At the end of the month, categorize each into their own respective categories such as food, entertainment, home and utilities, etc. By taking a careful inventory of these monthly expenses, you will begin to see some interesting patterns emerge. These patterns will fall into two separate categories that we will call excessive spending and habitual spending.

Meet Daryl, Your Average American Consumer

For this example we are going to use Daryl, a debt burdened consumer, who has completed the above exercise, so that we can illustrate the patterns that you might expect to see when doing this exercise for yourself.

Daryl is an average American consumer with just more than $9,000 in consumer credit card debt. He has found himself paying only his minimum monthly payments at the end of the month due to a shortage of funds and occasionally he has to borrow payday loans to avoid late payment penalties in on his mortgage payment.

Before the above exercise, Daryl said that he occasionally goes out with his friends but does not buy a lot of consumer goods like his friends do. He considers himself a fairly conservative spender. He just can’t seem to make any headway on his debt. He blames his job, saying that he just doesn’t make enough to live on. So we asked Daryl to do the above exercise to see just how conservative he really is.

Daryl’s Spending Habits

Below are some of the habitual spending habits that Daryl found after completing the above exercise.

• Morning double shot espresso purchases two to three times a week before work at a cost of $4.25 each.
• Lunch twice a week at fast food establishments at a cost of $6.50 each.
• Movie once a week with refreshments costing an average of $16 each.

After doing the math, Daryl found that each month he was spending $51 on “wake up” coffee. $52 on lunch outings and $64 on movies and refreshments, for a grand total of $167.

Daryl did a little better in the excessive spending category finding only the following after completing the above exercise. But it was a big one.

• Groceries bill meeting and exceeding $150 dollars a week

This may not seem to be that much of a grocery bill, but considering that Daryl is “Batching it,” or in other words living solo, a grocery bill of $600 per month for one person is extremely excessive.

So between Daryl’s grocery bill and his habitual spending expenses, Daryl was spending $767 dollars each month.

What Could Daryl Do Better?

The advice given to Daryl after he completed the exercise saved him greatly in his monthly expenses. Here is what was suggested to improve his financial out look.

Cutting Out The Coffee

Instead of getting that morning cup of espresso at the drive-through three times a week, cut back to just one espresso a week. Better yet, eliminating these expensive cups of mud altogether by making his own coffee at home.

If coffee is not an acceptable substitute, purchasing an espresso maker would pay for itself rather quickly with the extra cash saved each week and could be considered a viable option as well.

Pack Out, Don’t Take Out!

Instead of indulging in fast food lunches twice a week, making a lunch and bringing it to work with him would save Daryl the extra money and his cardiac health too.

Spendy...and not good for you.

Subtituting the weekly movie and refreshments, with a RedBox or Netflix movie and some cheaper finger food with the friends, would eliminate his monthly dependence on payday loans.

Buy The Groceries, Not The Store

As far as groceries are concerned, Daryl could substantially lower his costs by going to the store with a planned list of needed food items, thus eliminating a lot of the more expensive junk foods he was getting before. This would lower his monthly grocery bill to the more typical average food bill for one person which should be in the neighborhood of $250 to $300 dollars.

The Conclusion

By subscribing to Netflix ($15), purchasing only one espresso each week ($17) and lowering his food bill to the higher end of the average food bill for one person ($300 dollars), Daryl will have room for beer and refreshments for movie night once a week and save $435 dollars each month.

If Daryl Can Do It, You Can Do

Looking at Daryl’s circumstances and the potential outcome,  a very small sacrifice is made for some extraordinary savings.

This shows the importance of implementing a budget or system to track your expenses each month so you can isolate areas where you can save money and regain financial territory lost to consumer credit debt.

Posted courtesy of Personal Money Store, your payday loans source.

Debt, what was once frowned upon as an irresponsible act or circumstance of the less fortunate in society, is now embraced by the masses. Between consumer credit cards, bank loans, and payday loans, the average American now possesses an average of $9,200 in credit card debt with an average interest rate somewhere between 15 and 19 percent.

Debt is a lot more difficult to understand since we have gone from a predominantly cash-only society to an increasingly cashless society.

Since our evolution away from cash towards credit, we have developed habits that have put our society as a whole at risk.

Too much use of the plastic!

Financial Decisions Today Will Affect Our Family And Country Tomorrow

America’s credit addiction has left millions of families living with nothing left in reserve going from one paycheck to the next just trying to make there minimum payments. Many families use third party services such as payday loans to help make ends meet.

The growing fear of many experts  is the future of today’s debt-saturated generation. The wide availability of credit and irresponsible borrowing has left consumers putting more money into interest rates on financed merchandise than their 401k’s.

With promotions shouting the availability of finance options like “No money down”, “No payments” and “No interest for up to 36 months,” consumers have a hard time passing up things they want but can’t afford.

Knowing The Difference

Debt used to be more clear-cut than it is today, which requires us to know and understand the difference between good and bad debt so we can make smarter decisions for our financial futures.

The following will help you determine the difference.

Good Debt

Good debt is usually defined by the simple fact that it’s going to provide some kind of return. By return I don’t mean better entertainment value such as that which is returned tenfold from the purchase of a brand new large screen plasma display or LCD television. I also don’t mean cosmetic value such as that returned by putting a fancy new pair of rims on your vehicle. By return we are solely talking about the financial return that is returned to you as a result of your financed transaction.

Types of good debt would include things such as borrowing money for a home or for a college education. These things make good financial sense. A home, although much goes to interest over the life of the loan, provides an equitable return with age and usually becomes the single greatest asset that a person owns.

College, on the other hand, can create years of student loan payments, but the increase in wages due to the college degree more than endorse this as good debt because of the profitable gain that will compensates for the original investment.

Bad Debt

Bad debt is just the opposite. You can usually identify bad debt by the lack of equitable return, such as a rent payment. Financial gain is never reaped as a result of renting a home or apartment. Consumer credit card debt is also a bad form of debt if it is not paid off in full each month, because credit payments continue to take from you without any comparable return.

The Gray Matter When It Comes To Debt

Sometimes it is hard to determine whether a financed transaction will be good debt or bad debt. A couple of examples of these gray areas would be car loans or payday loans.

Car Loans

Car loans and the like would typically be considered bad debt because they are in a constant state of depreciation. However, vehicles are an asset that most can’t afford to live without and may be required simply to get to work and get paid, therefore cars are a worthwhile investment. But purchasing one should be carefully considered.

When buying a car, it is strongly advised that you don’t buy one new off the lot as a newer vehicle depreciates much quicker than one that is a few years old. Plus an older vehicle’s taxes and payments are considerably cheaper, thus saving you more each month.

Payday Loans

Payday loans are another area which would fall into the “gray area” when considering good vs. bad debt depending on what they are used for.

Applying for a payday loan just to get some extra cash for a weekend in Las Vegas is a prime example of bad debt, but if you were to use a payday loan to avoid the fees on a late mortgage payment, a payday loan could save you money, which would make it a perfect example of good debt.

Make The Right Choice For Your Future

Remember the key is simply to determine the equity of the transaction. Will it save you money or not? Before you charge or finance your next transaction, try to determine whether your purchase would be considered good debt or bad debt.

Good debt will leave you in a better financial position for a safer, more stable and more profitable future.

You’re not blowing it all on clothes and payday loans are you?  With the trouble in the economy and the financial pressure that many are feeling today, American consumers are beginning to wise up.

USA Today quoted some interesting statistics based upon a survey asking consumers how they would spend an extra thousand dollars if given to them. The results were as follows,

• 31% would save it
• 24% would pay off debt
• 20% Would splurge!
• 16% Would spend it on necessary essentials

What would you have done with an extra thousand dollars this month?

It seems that most of the population is now making financially smart decisions. Paying debt, saving money, and spending it on essentials is what we should be doing. Especially now, and especially since the amount of average debt has grown exponentially, and more and more people are getting payday loans.

If you are among the 20% group who have, or would have chosen to splurge with that money, you should truthfully answer the following questions:

Are your debts paid?

Do you have a savings buffer?

Are your immediate needs provided for?

If the answer to any of the above questions is “NO”, then you have made the wrong decision. There is nothing wrong with splurging, but unless you can really afford to do so, all you are doing is enslaving yourself. The average American owes over $8000 in consumer credit card debt and that sum is rising, and so are the amount of people going to payday loans for financial help.

There are many bad habits that lead us into debt. I have outlined a few below. If you can personally identify with any of these, it would be wise for you to begin exercising a change in your financial habits in order to avoid any monetary pitfalls in the future.

What does “budget” mean to you?

Do you currently have a budget or plan of action for your monthly expenses and financial goals. If not, you need one! Some tend to think that a budget is just for those who are poor and need help making their expenses each month, but in reality we all should have a budget. Whether you make 20k, 100k or even more each year, a budget can help you to identify how much, and where your money is going. Without a budget, your ship may be afloat but you won’t be the captain.

Charging Purchases

It wasn’t that long ago that we all dealt in cash. The beautiful thing about cash was that if you didn’t have enough for what you wanted, you simply could not buy it, and that was the end of it. Today, we have too many options like Visa, Mastercard, and Discover. If we don’t have any plastic we can go draw some quick cash from a local brick and mortar, or online payday loans store.

All these luxuries that we have come to enjoy have their place and can be used responsibly to our own financial benefit. However, this is where discipline and responsibility are lacking with many consumers today.

If you use your card for all your monthly purchases, be sure that you do not go over the limit at which you can afford to payback at the end of the month. This may prove to be difficult and if so, get back into the habit of using and balancing a checkbook. With a checkbook your remaining balance is always before your eyes, and spending more than we can afford each month is more easily avoided.

Another alternative that I personally have found very useful from an accountability standpoint is putting a email notification on my credit card account. If your credit card provider provides this service to you via your online account control panel, you can get an automatic email notification when your balance reaches a set predetermined balance. Doing this will help you to avoid slipping further in the hole each month.

Paying off credit accounts

When paying off credit card debt, many try to pay off there lower balances first. This is usually a psychological game we play to make our progression to financial freedom feel faster.

If the interest rates on these lower balances are the highest of your credit accounts, you are following the right path as you always want to pursue your highest interest rates first as these will cost you the most over time.

Late Payments

One of the worst habits that will lead you into debt quickly is procrastination, being habitually late on your payments will not only add hefty late fees and charges to your already existing balance, but it will also raise the interest rates on your account. If the existing balance in the account is quite large, this could cost you hundreds of dollars in interest fees over the time it takes you to pay off the balance.

Minimum Payments

If you only pay the minimum payments on your account, then it would be safe to assume that you may never get out of debt. Minimum payments may make you feel like you are saving money because you have more in your pocket after paying your bills, but the amount you will pay in the long run for minimum payments will have you paying the maximum amount possible.

This can be demonstrated by the following scenario,

Let’s say you have a credit card with a $1000 balance on it. The APR is 18% and your monthly minimum payment is calculated at 2.5% of your current account balance.

If you chose to only pay the minimum payment of $25 each month until your account was paid in full, it would take you 153 months or just under thirteen years.

On the other hand, if you set your sights on paying off the debt by paying $100 each month or $75 dollars above the beginning minimum payment, it would only take you eleven months to pay your balance off .

Paying as much towards the principal of your balance each month as possible is key to getting your revolving credit balances payed off. If you would like to see how long it will take you to pay off your debts at set set monthly or minimum payment, you can use the calculator at Bankrate.com.

By taking steps to identify and correct these habits now you will save tens of thousands of dollars over the course of your lifetime, and less chances where you find yourself in need of payday loans. Take the step and you will be glad that you did.

"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.