Posts Tagged ‘debt’
- Scarred by Debt
by Natalie Daly
Times are tough, but you don’t have to let your debt mark you forever. If you’re among the 79% of undergrads who have credit cards, you’re part of a group carrying record-high credit balances. The average balance grew to $3,173 and 21% have balances of between $3,000 to $7,000. And this isn’t even including the more than $25,000 amassed in student debt!1 Is this really the way you pictured starting your life?
Proud and in Debt
According to researchers at Ohio State University, young adults feel empowered by their credit card and education debts. Seriously?! You feel empowered? “The more credit card and college loan debt 18- to 27-year-olds had, the more they felt like they were in control of their lives. Ironically, this is the generation that is expected to deal with an increasingly growing 14 trillion dollar national debt.”2
Don’t let your debt scar you. Get out now and stay out of debt. That’s the only way to really get ahead and make the most of all of your hard-earned cash. Here are some tips to help you avoid digging yourself into debt:
- Add it up. It might make you a little queasy, but you’re better off knowing where you stand. Get all of your bills together and do the math.
- Less cards = more control. Did you know that half of college undergrads had 4 or more credit cards?3 It’s time to get rid of that card you opened for a free T-shirt on the first day of class and keep it manageable. Have you heard of debt stacking? It’s a great way to gear down your debt. Take a look:
- Check your credit. Did you know you can get your credit report for free once a year? Visit AnnualCreditReport.com (877-322-8228). You might have a “don’t ask, don’t tell” policy on your debt balance but your credit score is the number one thing banks, creditors — and future employers — look at, so you’d better know what’s up.
- Develop a budget. Ugh. The B-word. Budgets are boring, right? Maybe, but for some, this can be a major wake-up call. If you seem to run short at the end of the month and can’t figure out where the money goes, this is a great way to discover less than stellar trends in your spending habits.
- Learn from your mistakes. “Nearly one in five 18- to 24-year-olds is in ‘debt hardship,’”4 so even if you’re in over your head right now, you can make a couple of strategic changes and get back in the black. As soon as you learn from your mistakes, you can start taking a step in the right direction … and that’s money in that bank!
* The examples are for illustrative purposes only. The Debt Stacking concept assumes that: (1) you make consistent payments on all of your debts, (2) when you pay off the first debt in your plan, you add the payment you were making toward that debt to your existing payment on the next debt in your plan (therefore you make the same total monthly payment each month toward your debts) (3) you continue this process until you have eliminated all of the debts in your plan. In the example above, when the retail card is paid off, the $220 is applied to credit card 2, accelerating its payment to $573. After credit card 2 is paid off, the $573 is applied to the car loan for a total payment of $1,124. The process is then continued until all debts are paid off. Note that the total payment per month remains constant.
Tags: budget, credit, credit cards, debt, debt stacking, education, money, spending, student, undergrads
Posted in Primerica, Tips |
The end of the year is approaching fast. Do you need a financial tune-up? Here are a few areas to consider as you reflect and review:
Review your credit cards. Do you have a stellar credit score? With industry competition fierce for your business, you may be able to ask for – and receive – a lower Annual Percentage Rate (APR). While the average variable APR for credit cards is 14.46%, those with super-high credit scores can actually cut that in half (see chart below). If you’re among that elite crowd – and aren’t happy with your current rate or terms – try contacting customer service. You could negotiate your way to a better rate, or persuade them to waive the annual charge.
What’s your get-out-of-debt plan? Are you worried about your debt? If you’ve ever thought about making a dent in your debt (or changing your credit habits), now’s the time! Approximately 63% of Americans who are in debt say they worry about money one to three hours a day, and 22% worry four-plus hours a day. If you’re among them, ask your Primerica Representative how Primerica Debtwatchers™ can show you how to create a plan to gain control of your credit for good.
Check your emergency savings. Do you have three to six months’ salary stashed? If not, you’re not alone – a majority of Americans say they don’t have enough cash on hand to cover a $1,000 emergency expense.[1] To find extra cash for your emergency fund, get creative: take on extra work (ask your Primerica Representative how you can earn extra money part-time by helping families with their finances) or trim some of the “extras” from your monthly bills (think entertainment costs like dining out and cable/satellite service).
Review your life insurance coverage. If you have had a change in your life – such as the birth of a baby – this is crucial. Financial experts generally recommend about six to 10 times your annual salary. Nearly a third of all U.S. households have no life insurance, the highest percentage in more than four decades.[2] Among households with children younger than 18, 40% said they would immediately have trouble keeping up with living expenses if a wage earner passed away.[3] Don’t let a troubled economy put your family’s financial future at risk: Talk to your Primerica representative to make sure you’re (still) properly protected.
Re-shop your auto insurance. If you haven’t comparison-shopped your rates lately, give it a try! For an identical six-month policy, costs can vary as much as $500 across carriers – yet only 20% of consumers actually take the time to shop around![4] Too busy to shop? Ask your Primerica representative about Primerica Secure®, a referral program that shops multiple carriers for you!
Do you have a will? Two-thirds of Americans do not, according to a 2010 survey.[5] You can pay a lawyer anywhere from $100 to $1,000 to crate a will,[6] or ask your Primerica representative about the Primerica Legal Protection Program (PLPP), which includes free will preparation among its many benefits.
- Money, July 2011
- USA Today, January 7-9, 2011
- Primerica, representatives of Primerica, Equifax and Primerica DebtWatchers™ will not act as an intermediary between Primerica DebtWatchers customers and their creditors and do not imply, promise or guarantee that credit files or credit scores will or may be improved, repaired, boosted, enhanced, corrected or increased by use of the Primerica DebtWatchers product. Primerica DebtWatchers™ is a trademark of Primerica, Inc. Primerica DebtWatchers is not available for purchase.
- CNNMoney.com, August 10, 2011
- Wall Street Journal, August 29, 2010
- Ibid
Tags: credit, credit card, credit score, debt, equifax, Primerica
Posted in Primerica, Tips |
The holidays are coming up soon. Take note of these credit red flags – and put your card away at these times.
- After midnight. Your judgment may be off at this time of day, so turn off the computer, put your card away and wait till morning.
- When you’re near your credit limit. Credit counselors advise staying away from even a couple of hundred dollars of your credit limit to avoid any negative impact on your credit score.
- When you get a notice that your rate will go up. You may be able to negotiate with your credit card company for the old rate, switch to a new company with a lower rate or avoid using credit altogether.
- You’re paying one card with another, habitually. If you’re bouncing your balance around from one card to the next, you should be aware that moving it around every six months or so may show up on your credit report. Also note that transfer fees have gone up to about 4% of your debt.
- If you don’t have a plan for paying it off. If you’re still charging more than you can pay off each month – and have too much revolving debt – Primerica DebtWatchers can help you create a plan to pay off your debt, and help you stick to it!
Tags: charge, credit, credit card, credit limit, debt, holiday, Primerica, Primerica DebtWatchers
Posted in Primerica, Tips |
Remember when, if you worked hard throughout the year, you could expect a raise at the end? Most people probably don’t.
The fact is, most Americans probably can’t remember. Perhaps they’ve gotten what you could call a “cost of living increase,” a raise that just helps their salary keep up with inflation. But for most, their incomes have either decreased or remained the same — and that’s just for those lucky enough to have a job in this economy.
So how will Americans get ahead?
Some have cut back. Some have gone deeper into debt. Others have picked up a part-time gig along the way to help make ends meet.
Are you looking to make extra income? Consider Primerica’s Business Opportunity and discover how you can get back on track financially, and how you can get ahead, too.
Source: CNNMoney.cm, viewed on February 22, 2011
Tags: business opportunity, cost of living, debt, income, Primerica, primerica opportunity
Posted in Opportunity, Primerica |
Are you worried about money? The amount of debt you have can take a toll on more than just your bank account and savings plan. It can impact you emotionally, as well.
With the economy struggling to make a comeback, the average American is spending 3.3 hours each day worrying about money:
Are you worried about your financial future? Get a new outlook! Ask your local Primerica representative for a free Financial Needs Analysis today.
Tags: debt, financial needs analysis, money, Primerica, Primerica FNA, savings, worry
Posted in Primerica, Tips |
