Tag Archive for Debt

3 Smart Reasons Not to Go into Debt to Take a Vacation

debt vacation

debt vacationMost days out of the year you get up and go to work. In fact, most Americans work at least 35-40 hours per week, if not more, which can often leave little room for much else.

After a couple of work-filled months, even if you enjoy your job, you no doubt are in need of a break. And nothing else sounds quite as tempting, as jetting off to warm up under the sun on a white-sand beach complemented with a tropical drink.

Some individuals choose to take the time to save up for said vacation, while others, too eager to wait, choose to take on extra debt to afford a getaway. That being said, in need of a break or not, here are three reasons you shouldn?t go into debt just to take a vacation.

1. You Won?t Be Able to Relax

Going on vacation is all about relaxing. After all, it?s usually your time to get away from the usual hustle and bustle of everyday life.

Take on extra debt to go on your vacation, however, and you?ll likely find that it?s not all that relaxing to begin with. It?s nearly impossible to see a high number in front of your debt and not feel stressed.

Moreover, the cost of your vacation doesn?t stop once you reach your destination. Between food, extra travel cost, and the want of souvenirs, the price will continue to rise, and every extra cent you spend will just come with added stress.

2. Your Getaway Will Ultimately Cost More

Debt usually comes with interest, and the longer you go without paying off the full amount, the more interest you accrue. While the price behind your vacation might not seem terrible, it?ll no doubt cost you hundreds to thousands of dollars. I

n the long-run isn?t that quick to pay off. The longer your getaway takes to pay off, the more interest you?ll have; ergo, your vacation will cost you more than you originally thought.

3. Other Expenses Get Pushed Further into the Future

As mentioned, between the cost you rack up for the trip total to the interest that could bring, the time it takes to pay off the full amount could be longer than you hope. When you?re working to pay off existing debt, the desire to purchase anything else often must wait.

Whether you were working towards a short or long-term financial goal or have another trip you?d like to plan for, you?ll have to put those wants and goals on hold. Depending on the timeline to pay off your vacation, they could be on hold for a significant amount of time.

Everyone needs a break from the everyday now and then. However, a break shouldn?t come at the cost of further debt. By choosing to save up properly for your vacation, you?ll find it?s not only more enjoyable while you?re there, but a lot less stressful when you return home.

In the meantime, if you?re really aching for a break, plan a relaxing staycation until you can truly get away.


Have you taken on debt for vacation? What are some tips you?ve found helpful to save up for a vacation instead?


Photo courtesy of: Couleur

4 Ways to Eliminate Debt on a Variable Income

4 Ways to Eliminate Debt on a Variable Income

4 Ways to Eliminate Debt on a Variable IncomeWhen it comes to personal finance, there is nothing that you can do which will be more important than eliminating debt.

Saving is great, but it isn?t going to do you as much good as simply wiping out your debts as quickly as possible. If you currently have any degree of debt, your first objective should be to get rid of that debt right away.

Of course, this is something which is far easier said than done. You may already know that you should be getting rid of your debts, but you might not know how to do it. This is especially true if you live on a variable income, which is true for many people in today?s ?gig? economy. To help you get on the right track, we have assembled?some tips to help you eliminate debt on a variable income.

Build It Into Your Budget

Debt payments should not be seen as an optional part of your budget. For many people, paying down their debt is something that they do when there is a bit of ?extra? money laying around at the end of the month.

That is a poor way to look at this topic. Instead, you should be prioritizing debt, as carrying that debt is actively costing you money on an ongoing basis. While planning your spending for the month, build in debt payments and view them as fixed rather than optional.

Have a Savings Buffer

Because your income varies somewhat from month to month, one of the best things you can do is save up a ?cash cushion? that you can leave in your savings account for protection. This doesn?t have to be a huge amount of money, but it should be enough to help get you through those thin months when you don?t have as much income to pay your bills.

Even if you have just a couple thousand dollars available in cash, that reserve will make you feel more comfortable about committing money to your debts.

Tighten Your Spending

There is no way around it ? you are going to be able to pay off your debts faster if you stop spending so much each month. If you take a careful look at the money you spent in the last 30 days, it is almost certain that you have spent some money which could have been saved instead.

Put the emphasis on saving instead of spending in your day to day life and you will have more funds available to eradicate your debt.

Go Cash Only

You are never going to get rid of your debt if you are adding to it at the same time that you are trying to pay it off. If you can?t afford to pay cash for something, it is better that you don?t purchase it at all. Learning to have the discipline to only purchase things which you can afford at the time will go a long way toward helping you get back on track from a financial perspective.


Do you have a variable income? How are you paying off debt?


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4 Easy Ways to Pay Off Debt Faster

4 Easy Ways to Pay Off Debt Faster

4 Easy Ways to Pay Off Debt FasterNo one likes debt. If you are in debt, you probably spend a lot of time thinking ? and worrying ? about how to pay off debt faster. Not only will carrying debt cost you money in the way of interest charges, you will also have a lower credit rating due to your debt load. Ditching this debt is going to be good for your financial future all the way around.

While there is no ?magic wand? which can eliminate your financial obligations, there are a few things you can do in order to pay off debt faster?than you may have thought possible. Consider the advice provided in the four points below to get your financial life out of the hole and back on track.

1. Prioritize the Highest Interest Rates

This is a relatively obvious point, but it is one which is missed by many who are in debt. When making your payments each money, try to apply extra money to the accounts which carry the highest rates of interest. Wiping out these accounts first is going to save you money in both the short and long term. Of course, you never want to miss any debt payments, so don?t pay extra on one account if that means you can?t make your payments on other accounts.

2. Pick Up a Part-Time Job

There is nothing like extra income to help you pay off debt as fast as possible. If you have the time available in your schedule, consider picking up an extra job with the specific purpose of making extra debt payments. You might be surprised to find how quickly this strategy can pay off if you are diligent about applying your extra paycheck to your debts.

3. Cut Out Two Bills

Take a look at your recurring bills each month and try to spot two which you could do without. Many people have subscriptions to various services that they don?t really use enough to justify the expense. If you can cut just two bills out of your budget ? and then apply that money to your debts ? you will be able to cut into your debt in short order. You might have to be a little creative to find the two bills you are going to get rid of, but it can be done in most cases.

4. Eat at Home

This is a classic money saving technique, and you have probably heard this tip before in some fashion. It is worth repeating, however, because it can have such a profound impact on your family budget. When you go out to eat, you will usually spend twice as much as you would have at the grocery store for a similar meal. Yes, you have to cook the food yourself when you go to the grocery store, but the savings are worth it. Also, as an added bonus, home cooked food is often healthier than what you will get at a restaurant. Saving money by eating at home can make a big difference when looking for funds to pay off debt faster.

Remember, debt is not forever. Doing just a couple of these simple things can help you pay off debt faster so you can enjoy life debt-free.


Have you done any of these to pay off debt faster? How are you paying off debt?


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5 Ways to Side Hustle Your Way Out of Debt

Side Hustle Your Way Out of Debt

Side Hustle Your Way Out of DebtMost everyone today has debt in some way shape or form. The most common for this decade has seemed to be credit card debt and student loans. With more people being straddled with debt, there are fewer families that have proper savings for emergencies, for buying a home and especially retirement.

The number one way to get out of debt is to pay it off. It sounds obvious, but how can you do that if you can barely afford to pay the minimum payments have enough money to live on? One way is to increase your income.

There are lots of ways to increase your income. One way is by finding a side hustle. Here are some different side hustle ideas to help you get out of debt.

Work Weekends or Evenings

The weekends are prime time to bring home extra cash. You could try finding a part-time job making deliveries for a fast food restaurant, or working retail. When you’re tired, remember this isn?t a full-time or long-term thing. It’s?only temporary until you have your debt paid off. Paying off debt is not easy and neither is working more than one job, but it is worth it to be debt free.


There are a lot of freelance opportunities if you know where to look. First start contacting some of your friends or acquaintances who freelance or who own their businesses. They might need some help, or know how to help you get started. You could also try online job boards for freelancers such as Upwork and Fiverr. These may not bring in a lot of money per job (especially at first), but every little bit helps.

Sell Goods on Etsy

Etsy and other sites like it are great for using?your hobbies to help make you money. Some people have quit their day jobs to go full-time with their Etsy business. Use what you know for this. You don?t have to learn a new skill. Use your current skills and hobbies and find a way to market them.

Pick up Extra Shifts

Now this isn?t necessarily a side hustle, but it is a way for you to earn?more money. If you are paid hourly, find out if you can work extra shifts. But, keep in mind that this only works if there’s work to do at your job. You can?t stay late or work extra if you don?t have work to do while you’re there.

Babysit or Petsit

This may seem elementary and something you haven?t done since you were in high school, if ever. But, it’s a great way to make some extra money. There are tons of parents and pet parents who want a reliable babysitter and can?t find one for a night out. Start by using friends first and ask them for referrals.

There lots of?side hustles you can do to make extra income and pay off debt. Start with your things you’re already interested in when you’re looking for ways to make extra money on the side. You can pay off your debt quicker if you really want it by having a side gig and using the money only for debt. It takes hard work and dedication, but soon you’ll be able to go from?paying off debt to saving for the future instead.


Have you used a side hustle to pay off debt? What did you do to make extra money?


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Should You Use a Microloan to Build Business Credit?

Should You Use a Microloan to Build Business Credit?

Should You Use a Microloan to Build Business Credit?What?s the common denominator for starting a new business venture or expanding your current business? Money ?? lots and lots of money.

If you don?t have the capital to start the business or expand, how do you go about getting the money?

The first thing you might think of is a bank loan. These are great but usually for larger established companies who have continuous revenue and have good credit. If you have neither, or need to improve your credit, you might consider a microloan.

A microloan is a small business loan ranging from $500 to $35,000 provided by nonprofit organizations instead of a commercial financial institution. Should microloans be used to build your business credit? Below we discuss the pros and cons of microloans so that you can decide for yourself.


Smaller Amounts of Money May Be Borrowed

If you are trying to build up your credit taking out a huge loan isn?t always the best idea. With a microloan you wouldn?t be taking a lot out, just the smaller amount to get you to your next business goal or opportunity.

These loan payments are reported to the credit bureaus and if paid on time and paid off can increase your credit score the same as any other loan.

Gets You Used to Paying of Debt

This might seem to be a moot point, but if your business model has you purchasing inventory before you sell it or expanding or aggressively growing, you?ll most likely need a loan at some point. Of course, it’s always best to avoid debt whenever possible, but a microloan is a good test to see if your venture can pay off debt without bankrupting the company. Little bites are how you eat the elephant, not by swallowing the leg whole.

Easier to Obtain

If a bank denies you a small business loan, you may have better luck with a microloan. Sometimes banks don?t want to take the risk of a smaller loan on a business that has no credit. It?s easier to get and pay off a $5,000 loan than it is to pay off a $50,000 loan. There are microloan programs for startups, minorities, and other niches. Keep in mind these loans are made specifically for small businesses.


Microloans?Are Still Debt

Microloans are still debt. If you are looking to grow your business but can?t currently sustain what you are doing, a loan may not help you. Defaulting on the loan will hurt your credit further and make it harder for you to build up that score or even apply for more loans in the future. Plus, any debt you take on must be paid back eventually.

Higher Interest Rates

Though geared toward small businesses, microloans still charge interest. The interest tends to be higher than standard business loans. But it’s decidedly lower than if you used a business credit card. Microlenders will work with the small business to generate business plans and provide some feedback, your credit cards won?t.

Talk with your financial planner or business accountant to see what the best options are for you and your business if you need a loan. Credit scores are needed for everything but even if your credit score is low, you may find a microloan that fits your needs. If you don?t have business credit you might not be eligible for a business credit card and thus not help your credit. Microloans can help you build credit while starting or growing your business. Just make sure you weight the pros and cons first.


Have you ever had to take out a business loan? Did you consider a microloan?


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