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Guest Post by Mike Brains
 OK, we agree that being in debt is not a good position to be in, and that you should do what ever you can to get out and stay out of debt. So far so good. But what if you are in debt, and not in a position to make it go away anytime soon—what options do you have?
How can credit cards help?
Using credit cards may have contributed to getting you into a tight spot in the first place—or perhaps they were just the vehicle you used to get there—but could they also prove to be a way out? Used responsibly, they can actually help.
Admittedly it isn’t very often that you hear the term ‘credit card’ and ‘save you money’ in the same sentence, but there is a way in which you can use credit cards to save you a decent amount of money in a relatively short period of time.
Continue reading How Can a Credit Card Save You Money? →
Guest Post
Trying to get out of debt can be a difficult task. Due to interest, it seems as though debt keeps on growing. It can be hard to pay off your debt — especially if you only make minimum payments. In order to make headway, it is vital that you start to making more than the minimum payment on the debt. Here are some ways that you can find room in your budget to help reduce your debt:
Identify — and Cut — the Financial Waste in Your Monthly Budget
The first thing to do is figure out where you can cut back on your spending. There are some estimates that each household wastes up to 15% of its income each month. Think about that. If you make $4,000 a month, that means that you could be wasting up to $600 each month. Consider how much headway you could make with your debt if you applied even half that on top of a minimum payment.
Continue reading Getting Out of Debt: Paydown Strategies →
The following is a guest post by Kevin Craig
Bad spending habits are something that every spend-thrift American is addicted to. Easy availability of credit cards and quick access to loans has fanned this fiery practice all the more. And the result is deep debt crisis faced by almost every second person in the US. Though there are several debt settlement companies across different states in the US your own endeavors can save you and keep out of debt.
Does your careless spending habit take a toll on your finances every month and leave you at the mercy of creditors? Why not start taking a little initiative to put a check on reckless expenditures and avoid unpleasant debt problems? Breaking bad spending habits is not a Herculean task. It is all about imposing discipline on your expenses.
Just check out the following three tips to kick-start your cost-curtailment plan:
Continue reading How to Control Your Spending Habits and Avoid Debt →
By Timothy Ng
You can save a lot of money and eliminate your credit card debt faster if you understand the balance repayments of your credit card and the interest you are paying. In this article you can find out how you can save money every month.
Many people get into credit card debt because they simply do not understand interest rates and the actual dollar value that they represent. They also do not understand about the fees and charges associated with the credit card and get caught up in debt before they know it.
Most cardholders start off with good intentions when they are making purchases on their new card and fully expect to be able to pay off the balance at the end of the month. In many cases, however, something comes up and they are unable to make a full payment. In fact, some people end up dragging themselves even further into debt by applying for an online check advance to pay off their debt. Still, some will continue to charge purchases to their card, even though they know good and well that they are just increasing their debt.
Interest rates add on to the balance and the cardholder is suddenly faced with credit card debt. People need to understand interest rates so that they can stay on top of their debt, especially in today’s economy.
Continue reading Minimum Monthly Balance Tip For Credit Card Debt →
By Alban (Guest Post)
A standard credit card gives you the security and ease of use to access funds at anytime, anywhere, online, over the phone or in person, and while not all credit cards can be opened for business use, there is a wide range of business credit cards to choose from to keep your corporate spending documented, and give your business the same purchasing freedom you have come to rely on with your personal credit cards.
Benefits of Business Credit Cards
Don’t worry that your business is too small or doesn’t make enough purchases to warrant a business credit card, because there are so many different types of business credit cards available you are sure to find one to suit your business. So check out all the benefits your business can get from using a corporate credit card:
Continue reading Advantages of Business Credit Cards →
It’s easier when you take care of a few things first
By Kevin M
It’s been said that the best way to accomplish a big project is to break it into a series of smaller ones. Paying off credit cards can be as big a project as we can imagine, based on the size of the debt that needs to be paid off.
Often it’s the size of the debt itself that presents the biggest obstacle to even getting started. While it may not be too difficult to payoff $10,000 in credit card debt going from a standing start, a balance of $50,000 will require marshalling all of our efforts and resources.
It’s important to realize that paying off credit cards isn’t just about discipline. A huge part of the project is emotional and you’ll have to do it in such a way that you’re rewarding your efforts by reaching crucial milestones along the way. Take it in stages, stack the deck in your favor, and the whole process will be less painful.
Continue reading Payoff Your Credit Cards – But Set the Stage FIRST →
Newsflash: You can’t get out of debt until you stop being broke!
By Kevin M
Some argue that if you’re in debt the priority needs to be to payoff your debts before attempting to build a savings account. Many call for the establishment of a small emergency fund—typically $1000—to handle contingencies, and then to pour all extra funds into the pay down and eventual payoff of debt. Only when your debts are paid will you have the cash flow to truly build substantial savings.
While there is some merit to that advice, I believe it fails to address the basic reason a person might get into debt in the first place: a lack of savings, forcing the use of credit as a savings substitute.
Until that cycle is broken, it’s doubtful you’ll ever payoff your debts or accumulate substantial savings. Life has a way of throwing contingency after contingency at us and unless we’re fully prepared to deal with that reality, getting out of debt is little more than a fantasy.
Continue reading Build Savings or Payoff Debt – Which Comes First? →
Kevin M
I hate this topic—so why am I writing about it? Because it seems to be a staple topic of the personal finance blogosphere! And almost universally, the conclusion will inevitably come down on the side credit cards as the better deal.
Warning: if you’re looking for that same conclusion here, you’ll be disappointed. Being contrarian by nature, here’s my take on the debate.
I think debit cards are the lesser of the two evils mostly because there’s little chance with a debit card that you’ll end up paying for this months expenses next month, next year or over the next 10 years. That ices it for me, but we can go on.
We can get into the mechanics of which costs more or has better benefits, but those are details that ignore the most important element–the human factor. If we’re all trying to get out and stay out of debt, spending with a credit card is a contradiction in terms.
Worse, for those who have dug themselves out of a debt hole and think that credit cards are now your friend, just remember that like an alcoholic, you aren’t cured, you’re just recovering. Why play around with credit cards when you got into trouble with them in the past?
Continue reading Credit Cards vs. Debit Cards – A Different Take →
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General: Any information in regard to money, credit, personal finance, or in regard to any other monetary topic, provided or shared on OutOfYourRut.com is presented for information and entertainment purposes only and does not constitute financial advice. It is intended to provide general information only and does not constitute personal financial advice in regard to your specific circumstances...MORE-->
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Credit Cards vs. Debit Cards – A Different Take
Kevin M
I hate this topic—so why am I writing about it? Because it seems to be a staple topic of the personal finance blogosphere! And almost universally, the conclusion will inevitably come down on the side credit cards as the better deal.
Warning: if you’re looking for that same conclusion here, you’ll be disappointed. Being contrarian by nature, here’s my take on the debate.
I think debit cards are the lesser of the two evils mostly because there’s little chance with a debit card that you’ll end up paying for this months expenses next month, next year or over the next 10 years. That ices it for me, but we can go on.
We can get into the mechanics of which costs more or has better benefits, but those are details that ignore the most important element–the human factor. If we’re all trying to get out and stay out of debt, spending with a credit card is a contradiction in terms.
Worse, for those who have dug themselves out of a debt hole and think that credit cards are now your friend, just remember that like an alcoholic, you aren’t cured, you’re just recovering. Why play around with credit cards when you got into trouble with them in the past?
Continue reading Credit Cards vs. Debit Cards – A Different Take →