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are you tired of feeling overwhelmed by debt do you dream of a future free from Financial stress well you're in the right place welcome to Cashwise owl your trusted source for mastering personal finance today we're diving into a topic that affects millions of people around the world debt management if you're ready to take control of your financial future and break free from the chains of debt then stick around in this video we're going to share 10 debt management techniques that can help you achieve your goals and live a life of Financial Freedom but before we get started make sure to grab a pen and paper because you'll want to take notes on these valuable strategies and don't forget to watch till the end to fully understand each technique and how it can transform your financial situation let's get started the first step in effective debt management is understanding your debt take stock of all your debts including cluding the total amount owed interest rates and minimum monthly payments this comprehensive overview will serve as the foundation for developing your debt repayment strategy a pro tip here is take advantage of free credit reports from all three major credit bureaus to get a comprehensive overview of your debts including any inaccuracies or discrepancies understanding the full scope of your debt will Empower you to make informed decisions as you create your payment plan once you have a clear understanding of your debt it's time to create a debt payoff plan there are various strategies you can use such as the debt snowball method or the debt Avalanche method choose the approach that aligns best with your financial goals and prioritize paying off highin debts first a pro tip here is consider using a debt payoff calculator to explore different repayment scenarios and determine the most efficient strategy for your situation by visualizing your progress and adjusting your plan as needed you can stay motivated and on track to becoming debt-free setting realistic goals is crucial for staying motivated throughout your debt repayment Journey break down your total debt into smaller manageable goals and celebrate each Milestone along the way this incremental approach will help you stay focused and maintain momentum as you work towards becoming debt-free a pro TI here is break down your debt payoff goals into smaller milestones and reward yourself for achieving each one whether it's treating yourself to a small Indulgence or celebrating with friends and family acknowledging your progress will keep you motivated and focused on your ultimate goal of Financial Freedom to accelerate your debt repayment progress consider cutting expenses and increasing your income look for areas where you can trim your budget such as d in out less frequently or cancelling subscription Services additionally explore opportunities to boost your income through side hustles or freelance work a pro tip here is challenge yourself to find creative ways to reduce your expenses such as negotiating lower bills or finding more affordable alternatives for everyday purchases additionally explore opportunities to generate extra income through freelance work or monetizing your hobbies to allocate more funds towards debt repayment don't hesitate to reach out to your creditors and negotiate lower interest rates many creditors are willing to work with borrowers who demonstrate a commitment to repaying their debts a lower interest rate can significantly reduce the total amount you'll pay over time saving you money in the long run a pro tip here is be proactive in contacting your creditors and highlighting your positive payment history and Financial stability by demonstrating your commitment to repaying your debts you may be able to negotiate lower interest rates or more favorable repayment terms saving you money in the long run debt consolidation can be an effective strategy for simplifying your debt repayment process by combining multiple debts into a single loan with a lower interest rate you can streamline your payments and potentially reduce your monthly payments however it's essential to weigh the pros and cons of debt consolidation carefully a pro tip here is before consolidating your debts carefully evaluate the terms and conditions of the consolidation loan to ensure it aligns with your financial goals and budget consider factors such as interest rates fees and repayment terms to determine if consolidation is the right option for you take advantage of balance transfer offers to consolidate high-interest credit card debt onto a card with a lower or 0% introductory APR this can provide temporary relief from high interest rates and give you time to focus on paying down your debt without acre additional interest charges a pro tip here is pay close attention to the balance transfer fee and the length of the introductory APR period when considering balance transfer offers aim to pay off your transferred balance before the promotional period ends to maximize savings on interest charges if you're feeling overwhelmed by your debt or struggling to make progress on your own don't hesitate to seek professional help credit counseling agencies and financial advisors can provide personalized guidance and support to help you develop a debt management plan that works for your unique situation a pro tip here is research reputable credit counseling agencies and financial advisers who specialize in debt management they can provide personal guidance and support to help you develop a debt management plan tailored to your unique situation debt management is a marathon not a Sprint stay committed to your debt repayment plan and be patient with yourself as you work towards your goals remember that every payment brings you one step closer to Financial Freedom and the sacrifices you make today will pay off in the long run a pro tip here is stay committed to your debt repayment plan and and be patient with yourself as you work towards your goals celebrate small victories along the way and remind yourself of the long-term benefits of becoming debt-free finally don't forget to celebrate your successes along the way eyeing off debt is no small feat and each Milestone deserves recognition treat yourself to a small reward when you reach a debt repayment goal to stay motivated and inspired on your journey to becoming debt-free a pro tip here is set aside a portion of your budget for small Rewards or treats When You Reach debt repayment Milestones celebrating your progress will help you stay motivated and inspired on your journey to Financial Freedom there you have it 10 debt management techniques with Pro tips to help you take control of your financial future by understanding your debt creating a repayment plan and staying disciplined in your approach you can overcome Financial challenges and achieve your goals remember it's never too late to start managing your debt and building a brighter financial future thanks for watching Cashwise owl don't forget to like share and subscribe for more valuable insights on mastering personal finance until next time happy budgeting

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A balanced approach to wealth management serves 
both today’s needs and tomorrow’s goals. For some,   that may mean paying off some debt today while 
simultaneously investing for the future.
  Of course, your own needs and circumstances 
will be unique. But hopefully, this video   can help you evaluate alternatives and find an 
approach that fits your situation and goals. If you have some extra cash flow each month, you 
might be wondering what the best thing to do with   it is: should you pay off debt, or should you 
instead invest? The answer can be complex, and   it varies depending on your financial situation. 
So, it’s crucial to consider where you are   financially, the rates of return you could expect 
with each option, and a variety of other factors.

So before you start putting money away toward 
either option, it’s essential to make sure you   have your financial basics covered. And 
the best way of doing this is to create a   budget if you don’t have one already so you 
can see how your monthly income is spent. Since your finances are finite. You, therefore,   have a limited amount of money to pay down 
debt, invest and cover your expenses. This   is why it’s important to learn what 
comes in and goes out each month. If you stick to your budget, you’ll have 
better control of your personal finances.   This will allow you to dedicate as much 
cash as possible towards each ‘category’,   thus increasing your net worth whilst 
building a solid financial plan.

Once you determine the amount you’re able to 
set aside for paying off debt or investing,   you’ll need to prioritise your options.  Investing is a way to set money aside for the 
future in an investment vehicle. Examples of   this include bonds, stocks or mutual funds. The 
great news is that, the value of these vehicles   will grow with time. On the other hand, debt 
represents money that you’ve spent already and   that your lender is charging you interest on. 
When this debt is left unpaid, it only grows   with interest charges adding to your balance 
and incurring interest charges on their own. In the case of investing, this is the rule 
of thumb: if you can earn more interest on   your money by investing it than your debts 
are costing you, then investing makes sense.   Another thing to consider is your risk 
tolerance. If you are comfortable taking   the gamble that your investments will depend on 
the rise and fall of the markets, then investing   is a better option as opposed to someone who’d 
be restless wondering how the market will be. When it comes to paying down debt, 
there are several good arguments   for opting to pay down debt rather than 
investing.

For one, your debt carries   a relatively high-interest rate. This is 
especially the case with credit card debt.   Another reason to pay down debt is your credit 
score, which is important if you’d like to borrow   money for a mortgage or get a loan on a car. 
If you have a low credit score you’re likely   to pay higher interest rates (that is if you 
can get a loan at all). Your credit score can   also affect other areas of your life. Some 
examples include the premiums you’ll pay for   insurance, whether you’ll be able to rent 
a place, or if an employer will hire you. Paying off debt – especially if you have lots   of it – can be the right way 
to go for that reason alone. Psychology is also a factor that comes into 
play. If your debts are making you lose sleep,   then you’d rather repay them even if you might 
get a better return on your money by investing.

When you think about it, paying down debt or 
investing doesn’t have to be an “either – or”   decision. Why not do both? Investing and 
paying off debt are essential financial goals. Your investments and your debt 
are elements of your net worth.   While your assets increase your net worth, 
your debts are dragging it down. Since your   focus should be increasing your net worth, you 
should aim to increase your assets and minimise   your debt at the same time. To do this, commit 
as much of your cash flow to fulfilling these   goals as possible, ideally all of your free cash 
flow after you factor in your necessary expenses. If you have high-interest rate credit card 
debt, focus on paying it off first.

If you   are investing when you have credit card debt, 
you are likely paying a higher rate on your   debt than you are earning via your investments. 
Unless you have a huge amount in investments,   you end up losing money overall. Some debts 
tend to be lower however, such as mortgages   and student loans which you don’t need to be as 
aggressive with those as with high-interest debts. How to start investing Investing your money is important to 
building wealth. But you need to make   certain you’re ready before you start 
using your cash to buy investments.   If you have a lot of credit card debt, you 
may not be in a position to invest much.

When you have a limited amount of money, you 
have to decide how best to use it to maximise   the return on investment it provides. In most 
cases, paying off credit card debt is going to   provide a better return on investment than just 
about anything else you could do with the money. The one exception to this is if your employer 
provides a 401(k)-matching contribution when   you invest in your workplace retirement plan. 
If your employer matches contributions you make,   that’s free money. The specific return 
you get will depend on the percentage   of contributions the company matches, but it’s 
common for employers to match 50% or a 100% of   contributions up to a certain percentage of your 
salary.

So, investing enough to earn the full   employer match could end up giving you a return on 
investment of around fifty to a hundred percent. Investing in your retirement account is often a 
good place to start. Experts recommend putting   at least 15% of your annual income towards 
your retirement. Whether you do this through   a work-sponsored retirement plan or an individual 
retirement account is up to you, but make sure   you’re never leaving any money on the table, such 
as from an untapped employer match to your 401(k). Retirement aside, the right investments 
for you will depend on your risk tolerance.   Stocks are generally riskier 
than bonds. To lighten the risk,   you can turn to mutual funds. They can 
help provide diversification among stocks,   bonds and other investments to reduce the 
risk from each one individually. Your risk   tolerance can be factored by income, age, 
lifestyle and when you’ll need the money. Carrying debt can be stressful, and if 
it negatively impacts your mental health,   you may want to prioritise paying debt 
down first. Debt can completely derail   your financial goals. It eats through 
your savings and can offset the gains   you make through investing.

On the other 
hand, you may have a better chance of   a bigger reward with smart investments, 
so you may decide that’s worth the risk. Keep in mind that investing doesn’t come 
with guaranteed growth. Any average or   likely rates of return you may see are 
often based on long-term performance;   you may experience higher highs, 
and lower lows in the short term. If you choose to invest, by no means should 
you stop paying off your debt entirely. You   should aim to at least make your minimum 
monthly payments before you put any spare   cash toward investments. You really don’t 
want to miss your minimum payments. Think   of your minimum debt payments as fixed 
expenses. After regular living expenses,   minimum debt payments should be the 
next priority.

Failing to do so,   could lower your credit card score making 
it harder to qualify for future loans. The younger you are when you start investing, 
the more time you have for your investments   to grow. However, there’s no guarantee 
that you’ll make money when you invest,   as the market can be volatile. If 
you’re relying on an increased balance   within a short amount of time, you might be 
disappointed.

Whichever decision you make,   your decision is never set in stone. You can 
always switch up your budget if your financial   situation changes or if you’re unsatisfied 
with how you’re currently allocating your   money. The important thing is that you’re 
taking charge of your financial future. Make sure you have an emergency fund 
in place before you use extra money to   contribute to these goals. An emergency fund 
should contain between three to six months’   worth of expenses that can protect 
you in case unexpected costs come up. Without a financial safety net, you’re one 
unexpected medical bill, car accident or surprise   expense away from even more debt. Some people, 
particularly those worried about income loss,   prefer building a large cushion of cash for 
emergencies first over paying down extra debt. By using automatic deposits, you can create 
an investment plan and stick to it over time,   treating your investments as part of your 
fixed budget. Your safety net will give you   some financial breathing room, and before you know 
it, you’ll be making progress toward retirement,   a down payment on a house, college for 
your kids or whatever goal you had in mind.

As you approach saving, investing and paying 
off debt, keep in mind that it doesn’t have to   be all or nothing. You don’t just have to focus 
on one thing at a time. If you do, it could end   up taking longer to start working on each of 
your goals, which could delay your success. The best path to long term financial 
sustainability is paying off debt and   investing at the same time. This approach will 
help you improve your financial discipline,   and will ensure that all of your hard-earned cash   takes you one step closer to achieving 
your financial goals one cent at a time. Try and find a balance between everything.

While 
it can take a little longer to achieve each goal   this way, it can give you a more well-rounded 
financial foundation and pay off in the long run. When making decisions about 
debt reduction and investing,   keep in mind that the need to 
eventually pay off principal   is certain, but investment returns are not. 
Investment performance will vary over time,   and it’s possible to experience losses as well 
as gains. At the same time, it’s well known that   investors who start earlier can benefit 
from compounding and time in the market. But there aren’t any magic numbers. That’s 
why it’s important to work with your financial   advisor to create an investment strategy that 
fits your financial expectation for the future. Having some extra cash is an enviable situation 
to be in. When making decisions about debt and   investing, be a long-term thinker: Think 
about the position you want to be in the   next ten or so years.

Then evaluate what 
actions today will be most effective in   helping you achieve your long-term 
financial goals. Whether to invest   or pay down your debts is a decision only you 
can make. Whichever you choose is better than   merely spending it. You’ll be in a better 
financial situation than you were in before. If you’re interested in getting my savings 
and budgeting guide or retirement guide,   click on the link in the descriptions. Well, thank you all so much for watching, if you 
found this video helpful, be sure to give it a   thumbs up and subscribe to our channel for 
more tips on how to improve your finances. Until next time, take care!.

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Hello and welcome to our YouTube channel. Today, we're going to be discussing the top
10 strategies for debt management. If you're struggling with debt, it can be
a stressful and overwhelming situation. But don't despair, there are steps you can
take to get your finances back on track. As always, make sure to Like and subscribe
to the channel to stay up-to-date on all of the latest news. Let's get started! Number 1. Make a budget: The first step in
managing your debt is to understand how much money you have coming in and going out each
month. Make a budget that includes all of your expenses,
including your debt payments. By tracking your spending and identifying
areas where you can cut back, you can free up more money to put towards your debts. Use budgeting tools and apps to help you stay
organized and on track with your spending. Number 2. Prioritize your debts: Not all debts are created
equal. Some debts, like mortgage or car loan payments,
are considered "good" debts because they can help you build credit and improve your financial
situation in the long run.

Other debts, like credit card balances and
payday loans, are considered "bad" debts because they usually have higher interest rates and
can be more difficult to pay off. Prioritize paying off your bad debts first,
as they are costing you the most in interest charges. Focus on paying off one debt at a time, starting
with the one with the highest interest rate. Number 3. Negotiate with creditors: If you're struggling
to make your debt payments, don't be afraid to reach out to your creditors and ask for
help. They may be willing to work with you to lower
your interest rates or negotiate a payment plan that works for you. It's important to be proactive and communicate
with your creditors, as ignoring your debts will only make the situation worse.

Be honest with your creditors about your financial
situation and explain why you are unable to make your payments. They may be willing to help you find a solution. Number 4. Use a debt consolidation loan: If you have
multiple debts with different interest rates, a debt consolidation loan can help you simplify
your payments and potentially save money on interest. With a debt consolidation loan, you'll take
out a new loan to pay off your existing debts, and then make one monthly payment to the lender. This can be a good option if you're able to
secure a lower interest rate on the consolidation loan. Just be sure to carefully compare your options
and choose a lender with competitive rates and fees. Number 5. Use a balance transfer credit card: If you
have high-interest credit card debt, consider transferring the balances to a credit card
with a lower interest rate. Many credit cards offer introductory 0% interest
rates for a limited time on balance transfers. Just be sure to read the fine print and understand
any fees associated with the balance transfer, as well as the length of the introductory
rate period.

If you're able to pay off your balances within
the promotional period, you can save a significant amount on interest charges. Number 6. Consider a debt management plan: A debt management
plan is a repayment plan that is set up through a credit counseling agency. The agency works with your creditors to lower
your interest rates and monthly payments, making it easier for you to pay off your debts. With a debt management plan, you'll make one
monthly payment to the credit counseling agency, and they will distribute the funds to your
creditors on your behalf. This can be a good option if you're unable
to negotiate a lower interest rate on your own. Just be sure to choose a reputable credit
counseling agency that is accredited by a reputable organization. Number 7. Seek professional help: If your debts are
overwhelming and you're not sure where to turn, consider seeking the help of a financial
advisor or credit counselor. They can provide personalized advice and assistance
in finding the best solution for your specific situation.

A financial advisor can help you create a
budget and a debt repayment plan, while a credit counselor can help you understand your
options and provide support as you work to pay off your debts. It's important to work with a professional
who is knowledgeable and experienced in debt management, and who has your best interests
at heart. Number 8. Cut expenses: To free up more money for debt
payments, try cutting unnecessary expenses from your budget. This could include things like dining out,
subscription services, or entertainment costs. Look for ways to save on your monthly bills,
such as by negotiating with your service providers or switching to a cheaper plan. Every little bit counts, so be sure to look
for opportunities to save wherever you can.

Number 9. Increase income: Another way to free up more
money for debt payments is to increase your income. This could be through finding a higher paying
job, starting a side hustle, or finding ways to monetize a hobby or skill. Even small increases in income can make a
big difference when it comes to paying off your debts. Consider taking on additional work or starting
a business on the side to boost your income and accelerate your debt repayment. Number 10. Consider bankruptcy as a last resort: If your
debts are truly overwhelming and you're unable to make any progress in paying them off, bankruptcy
may be an option.

However, it's important to understand the
long-term consequences of bankruptcy, including the impact on your credit score and your ability
to borrow in the future. Bankruptcy should be considered as a last
resort, after you have explored all other options for managing your debts. It's a serious decision that should not be
taken lightly, so be sure to consult with a financial advisor or attorney before proceeding. These are the top 10 strategies for debt management. By following these tips and working with a
financial professional, you can get a handle on your debts and take control of your financial
future. Remember, it's never too late to start making
positive changes to your finances. Thanks for watching, and be sure to like and
subscribe for more helpful financial tips.

We will see you next time!.

As found on YouTube

>>> IT IS FOR:00 P.M. THE NEW YORK STOCK EXCHANGE HAVE ANOTHER DAY OF TRADING, GOING UP ABOUT 550 POINTS. THE S&P 500 UP ABOUT 2 1/2% WITH THE NASDAQ IS UP ABOUT 3 1/4%. ONE LINGERING ECONOMIC CONCERN IS THE RISE IN CREDIT CARD DEBT. THE FEDERAL RESERVE BANK OF NEW YORK SAYS AMERICAN CREDIT CARD DEBT ROSE TO $887 BILLION IN THE SECOND QUARTER OF THIS YEAR. OUR NEXT GUEST RIGHTS IN THE WASHINGTON POST, CREDIT CAR BARS FACE MOUNTING BURDENS AND TO BREAK IT ALL DOWN SHE JOINS ME NOW. AN ECONOMIC CORRESPONDENT FOR THE WASHINGTON POST. WHAT IS DRIVING AMERICANS TO BORROW MORE ON CREDIT CARDS? >> IN A WORD, INFLATION. WE HAVE TO GO BACK A COUPLE YEARS TO GET THE FULL PICTURE. MANY FAMILIES HAD EXTRA MONEY EARLY ON IN THE PANDEMIC TO PAY DOWN BILLS.

WE SAW AMERICANS PAY DOWN BILLIONS IN CREDIT CARD DEBT. THEY HAD EXTRA SAVINGS, GOVERNMENT STIMULUS MONEY. INFLATION HAS GOTTEN WORSE AND THAT HAS REVERSED. WE ARE STARTING TO SEE PEOPLE CHARGING MORE ON THE CREDIT CARDS AND OWING MORE THAN USUAL. >> ONE CONCERN WE'VE HAD IS TALK OF RECESSION. HOW COULD MOUNTING DEBT MAKE IT WORSE IN TERMS OF AN ECONOMIC SLOWDOWN FOR EVERYBODY? >> WE ARE IN THIS MOMENT WHERE THE ECONOMY IS STRONG. UNEMPLOYMENT IS VERY LOW. MANY PEOPLE STILL HAVE JOBS. THE FEAR IS IF THERE IS A SLOWDOWN, IF THERE ARE MANY JOB LOSSES WE COULD START TO SEE MAJOR DEFAULTS ON CREDIT CARD DEBT. >> HOW MUCH DO YOU THINK NATIONAL RENT-A-CAR DEBT FACTORS INTO THE FED DECISION IN THE NEXT MONTH OR SO AS WE EXPECT THEY WILL CONTINUE RAISING INTEREST RATES? DOES IT PLAY A ROLE IN THAT? >> IT DOESN'T PLAY A ROLE, BUT THE DECISION TO RAISE INTEREST RATES WILL CONTINUE TO IMPACT PEOPLE WITH CREDIT CARD DEBT. THAT MEANS INTEREST RATES ARE RISING AND THEY OWN MORE AS A RESULT.

>> WELL, WE ARE VERY GRATEFUL. IT IS GOOD TO LOOK AHEAD AND TO KNOW WE CAN EXPECT THINGS TO GET WORSE. IF YOU CAN.

As found on YouTube

over the last 5 years I have tried and tested so 
many different strategies to manage my money and   I've done that because understanding how to 
manage your money and be in control of your   money is one of the most important life skills 
we can learn today it doesn't matter if you're   making 50,000 or a 100,000 a year the number one 
thing that makes a difference is how you're able   to manage that money and the real skill of money 
management is about making the most of the money   that you have not just for investing and for 
growing wealth but instead to find the perfect   balance between living in the moment and planning 
for the future when you find something that a   is easy to do and B it's easy to maintain then 
managing your money stops feeling like a chore   so in this video I wanted to talk you through my 
three-step method for effectively managing your   money in a way that makes you feel in complete 
control of what is coming in and out of your   account every month I'll also give you some of 
my favorite tips along the way if you want to   use the same template that I have created then 
in the description box you can find completely   for free the link to to download and use this 
to incorporate for your own finances as well   okay so this is what the tracker looks like it's 
got the colorcoded spending categories the income   section at the top and then the overview on this 
table over here so these sales will change color   as you start filling in the sheet you'll see in 
just a moment you just have to click file make   a copy and then you can duplicate it and use it 
for yourself now step one is to define the three   fword wait for it a key part of being in control 
of your money is defining where you want to but   before we even do that you need to First figure 
out exactly how much money you're bringing home   each month so this is the amount that lands in 
your bank account after tax if you have multiple   income sources you want to include all of them 
in here your 9 to-5 day job your weekend gig your   freelancing work that you do on the side maybe 
some Investments that are paying off whatever   these numbers are you want to put them in the 
top left blue section over here for example if   I'm making 3,000 a month after taxes for my day 
job I'll put that here another 200 a month let's   say from my creative side hustle and 500 a month 
from freelancing so you just plug in those numbers   at the top now if you're employed the number 
is pretty straightforward it's the amount that   lands into your bank account each month after 
tax and other state contributions have already   been deducted so in this case that's a 3,000 a 
month but if you already contribute towards your   workplace pension you actually want to add that 
number back in So if you contribute say 200 a   month towards your pension add that 200 back into 
this and so that number would instead be 3,200   the reason for this is because the amount that 
you're putting towards your pension contribution   actually goes towards the future U category 
which will come to in a second now if you're   self-employed or you're a freelancer you need 
to take into account taxes the last thing you   want to do is assume you have all this money 
coming in and Define your goals on a higher   number than you should and then be disappointed 
when you don't hit your goals so in this case   the 200 from my side hustle and the 500 from my 
freelancing work that is after tax once you put   those numbers in your total income is calculated 
now that we've done that we can Define the three   FS the fundamental bucket the fund bucket and the 
future you bucket you want to decide how much of   your net income so the 3,700 in this case you 
want to put towards each of these buckets the   funds allocated to the fundamental bucket are 
dedicated to your essential needs these are the   non-negotiables of Life housing Transportation 
food money placed in the fund bucket those are   the costs that enrich your life with joy with 
experiences and then lastly everything you put   into the future you bucket that is an investment 
towards the life you envision years down the road   in the world of budgeting there is a popular 
guideline that you may have heard of called   the 50320 rule it suggests that 50% of your 
net income should go towards the fundamental   needs 30% should go towards the fund bucket and 
20% should go towards the future U so those are   the percentages that I'm going to put into this 
column right here so 50% towards fundamentals   30% towards fun and and 20% towards future me 
and what you'll see as we start filling in the   sheet and putting your numbers and your actual 
spending in is that the colors of these sales   will change depending on whether or not you're 
in line with your goals or if you're overspending   or under saving I do want to make a quick Point 
here actually about the 50 3020 guideline it was   introduced in 2005 in the book all your worth the 
ultimate lifetime money plan and so it was during   a different economic landscape over the years 
we have seen inflation Rising healthcare costs   inreased student loan debt fluctuating housing 
markets all of these factors have really impacted   people's disposable income and the proportion of 
their income that goes towards their fundamental   needs so you may want to modify these percentages 
and tweak them based on your unique circumstances   you want to start filling in the three colorcoded 
columns in the middle so the fundamentals the fun   stuff and the future you the fundamentals like 
we said are the non-negotiables they are the   fundamental things for your day-to-day living 
so this includes things like housing your rent   or your mortgage payments includes utilities 
and other bills so we're talking about um water   gas electricity it includes Transportation 
so your car payment train tickets to get to   work or any other mode of Transport that you pay 
for groceries would also go into here Insurance   minimum debt payments for your debt o ations and 
you want to find what you spend on each of these   by looking through your bank statements so your 
debit card statement your credit card statement   or any apps that you use it may be that your app 
automatically categorizes your spending for you   so maybe all your utilities come into one so 
you can put that one number as a total let's   say 200 into this cell over here or you can split 
it up so break it down by water gas electricity it   depends on how detailed you want this to be when 
it comes towards spending towards your needs you   want to as much as possible have this automated 
have direct debit set up so that everything is   getting paid automatically the more friction you 
can take out of anything the more likely you're   able to keep that thing up the last thing you 
want is to receive constant monthly reminders   to pay your bills and then you need to remember 
your password log into your system enter your bank   details manually transfer each month it's just not 
fun and these kind of things make managing your   money a chore it creates unnecessary friction so 
once you go through and enter all these numbers so   let's say 1,200 for mortgage 100 for utility 30 
for phone and you keep filling in these numbers   you can then check the table on the right and 
that will immediately show how you are doing in   relation to your goals so I had to set a Target 
here of 50% of my net income to spend towards the   fundamentals but this sale here has turned red so 
I'm clearly exceeding that threshold so then you   need to reassess that goal and that something will 
come to in step three and this column by the way   at the end it shows the actual amount that you're 
spending in the currency that you're spending in   this way you have a clear idea of both the portion 
of your income that you're spending in terms of   percentages towards each of these categories 
but also the exact amount you're spending as   well then we have the middle column and that is 
the fun stuff now you want to be really clear   with yourself here you want to clarify these 
categories from the outset you really don't   want your fun stuff creeping into your needs just 
to justify some spending so the fun bucket is all   the things that are not essential these are the 
things that at the core are completely optional   so examples of what can fall into the fun category 
include subscriptions like Netflix Spotify Amazon   Prime entertainment so things like going out 
to the movies eating out getting that round   of drinks self-care so things like your nails 
facial haircuts and traveling these are all   examples of what falls into the fun category 
the fun bucket also includes those upgrade   decisions that you make so if you're buying a 
Mercedes instead of buying a more economical   Toyota or if you're shopping at Marks and Spencers 
instead of Tesla goes or getting a gym membership   instead of working out at home those are all 
upgrades they're little extras that you spend   money on that makes life more enjoyable and more 
entertaining so you can see a few more examples   that I've put in there and again you could split 
it out so I've got clothing as spending 200 100   in that category you could split that out and 
make it as detailed as you want you could have   a line by line jumper trousers or whatever you've 
bought in the clothing section everything could   go into here once you fill in all the categories 
for your wants as I've done here the table on the   right again will signal whether you're on track 
or whether you need to cut back once again in   this case I'm spending 25% of my net income on 
my wats so the sale hasn't flagged up I've got   some leeway I've got some room to spend more if 
I want and then the third column is the future   UB bucket and this is all about paying yourself 
first there are a few ways you can do this but I   always recommend setting up automatic transfers 
from your bank account that you get paid into   into a separate savings account as soon as you get 
paid again when you create a system that works for   you you remove the need for willpower you remove 
any friction and there's no excuse not to save you   don't get to the end of the month and realize 
you don't have enough money to be able to save   like you said you would at the start of the month 
all of that push and pull just disappears in this   category you can include things like investing 
in stocks and shares topping up your emergency   fund and putting money towards your savings funds 
if you're not sure where you should start and in   which order you should put money towards I have 
a video right here that explains step by step   where you should be putting your money and in 
what order when it comes to your savings fund   I would also recommend having a separate account 
for each of your bigger saving goals so if you're   saving for a house have a house fund if you're 
saving for a car have a car fund have them all   with specific purposes that way you're keeping 
them separate and you could easily just log into   your account and check what the balance is and 
how far off or close you are to that goal it's   a lot more motivating than having it all in one 
as just a savings pop so there a sale right here   for the future U category that works in reverse 
if you're contributing less than the amount you   initially planned for the future you the savings 
and investment bucket then the sale will turn red   indicating that you're not saving enough and then 
we're on to step three and that is the reflections   arguably the most important part there's no point 
in coming up with all these goals and all these   of questions you can consider and ask yourself is 
have you paid all your bills on time are there any   late payments if so why can you set that up to be 
automatic are any of the sales read meaning either   you spent more than you should or you saved less 
than you should if that's the case why did that   happen what did you spend on if it's that you're 
spending too much in the fun bucket then are   there ways to get the same thing for less or is it 
that you simply need to reassess and cut some of   those things out or maybe you spent less than you 
thought you would in your fun bucket in which case   you can increase maybe your savings an investment 
section you could pay more towards yourself and   pay off your debt faster it might be that this is 
the first month that you're tracking your spending   in which case these percentages might need 
some tweaking to make it something that is more   sustainable over the long run instead of just like 
plugging the numbers and closing it and getting on   with your life reflect at the end of the month and 
see where you can improve your finances once again   if you do want to download and use the same one 
that I have it's linked completely for free in the   description box below if you do use it this month 
come back and tell me how you get on I'd love to   see what what you thought and how it helped 
thank you for watching and see you next week

As found on YouTube

– $100,000 of credit card debt. Can you even imagine
having that much debt? Maybe you do have that
much credit card debt. In this video, we're going to talk about how to solve that problem of large amounts of credit card debt. But first, if this is your first time here on my YouTube channel, please
go ahead and subscribe. On a weekly basis I
provide different content on how to deal with really
serious and big problems whether it's bankruptcy, whether it's debt collection lawsuits, or whether it's dealing with large amounts of credit card debt, which is what we're going
to talk about today. Now to put this into perspective, $100,000 of credit card debt. If you're paying the
average interest rate. And nationwide, this is
according to WalletHub, they say the average interest rate in the United States right
now is 19.02% interest. Which seems kind of high, but
that's what the average is across the board on new credit cards, 19%. If you have $100,000 of credit card debt, you're monthly minimum payment
is going to be $4,000 a month. So you can see how this
could really quickly get out of control.

Now you may be asking yourself, how does anyone get $100,000
of credit card debt? Let me tell you in my
law practice what I see, how this typically happens. The first one is business debt. Business credit cards are
a little easier to get, at least in high amounts. They may be lines of
credit, or lines of credit that have rolled over into a
credit card type situation. Where we see that they'll get multiple. You know, it's usually not just one card, but there'll be four or five cards with 15, $20,000 of credit on it. And those get racked up, the
business doesn't do well, the business fails. You know, worldwide pandemic happens. And all of a sudden you can't pay your monthly credit card payments. All of a sudden that
becomes a big problem. The second area I see is medical debt. A lot of people put their
medical expenses on credit cards.

Either because they have high deductibles, which most insurance policies nowadays do have very high deductibles. Or they don't have insurance at all so they put those medical
services on a credit card, and then they're unable to pay them. The third area that I see this is where people are consistently supplementing their monthly
income with credit cards. So if someone, their
salary is $4,000 a month. They're consistently
putting $500 to $1,000 on the credit card. And over time it starts to build up and with interest the whole
thing just starts to snowball. So it may sound like,
hey $100,000 in debt, that's really got to be the exception. It's more common than you think, particularly in my line of
business, I do bankruptcy law. I see people routinely
that have 50,000 plus and a number of those
people get over 100,000. Sometimes up to $150,000
of credit card debt. So the question is, what
do you do if you have large amounts of credit card debt, how do you solve that problem? Really you have three options. Your first option is
to simply pay it back. This is done through usually something like the Dave Ramsey snowball method.

Something that a lot of people don't know is I'm actually a certified
master financial coach through the Dave Ramsey Organization. Which I know is kind of weird because I'm also a bankruptcy attorney. But I believe in that type of method. If it's something where you have the means to be able to pay back
your debts over time, using Dave Ramsey's snowball method of starting with the lowest balance and start paying that off, and then taking the monthly
minimum that you paid on each card that you pay off and
applying it to the next one as you go over time. That's a great method
for getting rid of debt. It requires an incredible
amount of discipline and it requires a regular, monthly income that can actually pay that debt off. That's where I see a
lot of people struggle, is they simply don't
have the monthly income.

Particularly right now as we're dealing with this coronavirus,
COVID-19 thing going on. A lot of people's income has
reduced, their hours are down. And so that makes that type
of approach pretty difficult. The second one is to settle the debts. Now debt settlement is generally a decent approach to
deal with these things. A lot of the big problems I see is if you have a lot of cards. If you have 50,000 or
100,000 in credit card debt and it's spread out over
10, 15 credit cards, it's going to be pretty difficult. Because you have to get
all of them on board in order for the settlement
to make much sense. If you don't get them all on board and you settle half of them
and the other half sue you, you're not in a much better situation. So if you have a low
number of credit cards, you know, two to four, maybe five cards and you have the ability to make offers.

Usually settlement is only effective if you have a lump sum to deal with. So if you have some cash
and you can pay anywhere from 20 to 50% of the total
amount that they're seeking, they may be willing to settle with you. It's important to note that settlement, at least good settlements,
usually only happen once the account goes
completely delinquent, either it's charged off or
even sold to a junk debt buyer, that's where you're going to
get the better settlements.

If you're current on
your payments right now and you call up your credit
card company and say, "Hey I'd like to pay half." They're going to tell
you pounce and you can pay the full amount, or they may give you
some kind of you know, forbearance, something like
that for a month or two. But they're not going to
give you the good deal until it goes negative or
til it goes delinquent. The problem with that obviously is it's going to impact your credit. So let's talk about the
third option, bankruptcy.

The B word. You know, most people don't
want to file for bankruptcy, but it's a very powerful tool for getting rid of credit card debt. If you find yourself in this situation. In the typical Chapter 7 bankruptcy, pretty much all credit
card debt is discharged. It's eliminated. It goes away completely,
there's not payback, there's no tax consequences to it. It just goes away and is discharged. So if you're dealing with large
amounts of credit card debt a Chapter 7's not a bad option of just getting it out completely. It's a relatively quick process, it takes about four to five months. The alternative is a Chapter 13. Chapter 13 is typically
when people don't qualify for a Chapter 7 because
their income is too high. I can't go into the specifics of income here in this video because those
numbers change all the time and it varies from state to state. But I can tell you this, they base it upon your
household size and your income. And depending on where you're at there, a bankruptcy lawyer
will help you determine if you're able to move
forward with a Chapter 7.

If not, you're looking at a Chapter 13 or you'll be required to pay
back a portion of that debt over a 60-month period. At the end of the 60 months if there's any balances still remaining, that would be discharged
or eliminated completely at that point. So those are really your three options. You can pay it, you can settle it, or you can file bankruptcy on it. The best thing obviously
is to try to avoid getting into that kind of debt. But that's not what I do on this website is help you avoid it,
I help you get out of the problems that you're already in. So I appreciate you watching today. If you want to learn
more about how to deal with large debts or some
of those different options, debt settlement, bankruptcy, or even that Dave Ramsey snowball. I have more videos on this site. Make sure you subscribe
and check those out. I know they can help you out. Thanks for watching today..

As found on YouTube

it's not easy to get out of debt it can be difficult to keep up with monthly expenses and save for a rainy day let alone pay the minimum monthly payments on your credit card fortunately there's a site for that allow me to introduce you to undead undead it debuted in 2012 as a free mobile friendly debt snowball calculator over 121 000 people are currently using undead it to pay off 8.8 billion dollars in debt according to undead its creator jeff donaldson the site is the outcome of my desire to use a single tool to perform the work rather than many mobile apps and spreadsheets in today's video we're going to talk about undead it we're going to discuss what undeada is what the site offers and why it's one of the best free debt management software is available check my link in the description if you're interested in trying undead it for yourself if you like this kind of content subscribe to our channel click the like button and watch this video to the end what is undead undeada is a free debt reduction tool that assists you in keeping track of your progress and goals during your debt reduction plan the website's actual url is on debt.it which is where the moniker comes from the program helps you get out of debt quickly by building the appropriate plan tailored for you by adopting a suitable budget and holding yourself accountable it's a flexible program with several debt reduction options that you customize to your unique needs what i like best about undead it is its capability to build the ideal plan for you based on your personality type many of you may be familiar with dave ramsey's debt snowball method of debt reduction the debt snowball approach paying off your bills one by one lowest sums first is the most popular debt payback strategy that consumers adopt and that app can integrate this method however if you have a more quantitative and systematic mind like mine you may also use this program to choose the debt avalanche paying off your debts one by one highest interest rate first strategy which is the favor of many more mathematical types of people undead it's repayment option one of the most compelling reasons to select undead it is seven distinct repayment options these strategies are offered in a free version which works well for the majority of people on the path to debt independence as well as the premium version a few debt reduction products include seven different payment options many include popular debt reduction measures such as the debt snowball or debt avalanche but many do not provide the advanced approaches that we're going to talk about each option requires you to make the minimum monthly payment while focusing on your additional debt budget on a single obligation here's a quick overview of the different undead it payoff method you can select one of the following methods number one the debt snowball the debt snowball is possibly the most well-known debt repayment technique pays off your lowest balance first but in short it's a terrific strategy for reviving that sense of momentum as you close additional debts it's also the most widely used approach on undead number two the debt avalanche the debt avalanche starts with the highest interest rate and works its way down this technique has the potential to save you the most money and is the second most popular honor number three hybrid method debt to interest ratio the debt hybrid strategy combines the greatest elements of the debt snowball and that avalanche by paying off smaller balances you'll be able to combat high interest rates while keeping momentum number four the most expensive monthly payment paying off the biggest monthly payment may be the most effective approach to have more money each month number five the highest credit utilization rate do you want to improve your credit paying off your debts with the greatest credit utilization rate can help you can measure your progress by tracking your credit score using your free credit score app number six the highest monthly interest payment this technique like your debt avalanche pays off your debt with the greatest interest cost each month instead of the highest interest rate apr the tool considers the real dollar amount of input number seven the custom plan you can change the order of the payoffs by selecting lowest number first or highest number once you've established a debt payment pattern creating a bespoke plan that is a better fit for your financial position can be beneficial at first the huge array of options may appear to be overwhelming undead it on the other hand includes a comparison tool that shows you your overall debt cost and debt free date this simplifies things and can be eye-opening how undead it works endemic's tools are simple to use there's an easy mode view that makes it easy to set up and operate the easy mode display functions similarly to a debt payoff wizard allowing you to see and interact with everything in one once you set up your account and entered your debt information it will generate a plan for you based on the approach you select this monthly payback plan specifies how much money you should transfer to each debt account each month with a click of the download snowball table button you can export your preferred plan to an excel file alternatively you may utilize the dashboard to follow your progress and make changes in any case it works from any place you have an internet access and a browser is there an app or a link to your accounts on undead it undead it does not have a mobile app but the website is mobile friendly and simple to use on a phone or desktop in other words it's a web app that is you don't need anything extra to use it also has no connection to any of your bank this implies you won't be able to connect your account like mint you must instead manually enter your payments and transactions however this can be a beneficial thing if you're concerned about your bank accounts becoming vulnerable to malicious users hacking third-party websites you won't have to worry about that debt snowflakes is a useful feature in the debt payment track undead it's debt snowflake undead it allows you to vary the amount of your monthly debt payment to change up your payback plan you may receive a one-time cash windfall such as a tax return from time to time you can record things like that as an extra monthly payment using the debt snowflake tool when you make additional one-time payments you can add debt snowflakes you can also build negative snowflakes to notify the tool that you need to skip a monthly debt payment for example perhaps you need the money for a financial emergency instead and then it also contains graphs and charts that allows you to view your credit usage ratio interest rate and interest charges by specific account they make it simple to see where you stand based on information you provided undead it's price it doesn't matter how amazing a program is if it costs an arm and a leg to pay for it so many people promise debt relief advice programs only to slap you with a huge monthly bill that really puts you further in the debt there is a free version of undead it that may be all you require you can surely get out of debt with the free version this isn't one of those bait and switch programs where you get halfway through and then you have to pay them 100 a month there's no fine print here guys the site is available in two pricing models free and premium free edition is completely free while the premium version costs only 12 per year the free version of undead it allows users to add unlimited debt accounts use the debt snowball or debt avalanche export your plan to excel and add promotional interest compare debt payoff plans and create a customized payoff plan if you primarily want to utilize or evaluate one of the seven repayment options the free plan is ideal pros of the free version include seven debt repayment strategies are available for free you can personalize your debt repayment plan and track unlimited number of debt accounts website that is mobile friendly customer service which includes youtube videos faqs and a startup guide cons of undead it are each monthly payment must be entered manually there are some internet advertisements on the free core plan payment reminders are only available with the premium undead it plus plan unless you use the premium plan and sync with ynab you need a budget there are no monthly budget tools undent.it unfortunately does not offer a mobile app the web page on the other hand has been optimized for web browser the premium subscription of undead it includes everything offered in the free tier and various integrations that the free tier does not offer the following features are only available in the premium version using drag and drop custom debt make 52 week saving strategy for build control debt destroyer payment reminders through text message email summary for the month account tracking and forecast table of individual amortization auto bill payment payment planner on a calendar account consolidation in advance removes website advertisement automatic monthly adjustments integration of a mobile calendar debt repayment tails integration with widen debt.it premium is extremely reasonable at twelve dollars per year or one dollar each month i would absolutely recommend paying for the service just to be rid of the ads but if you're on the fence the premium version has a 30-day trial period before you're committed to paying the annual charge who should use undead it indebt.it is ideal for folks who wish to utilize the debt payment man but need assistance in creating a plan other debt payment plans may be worthwhile to pursue if they are a better fit for your aims for example you could want to see how quickly you can pay off your greatest monthly payment in order to significantly lower your monthly undead it is free but offers many resources making it a cost effective and efficient use of your time if you like what you've seen and heard use my link in the description if you're interested in trying undead it for yourself if you enjoyed this video then check out these videos on your screen that i've selected just for you thanks for watching and i'll see you in the next

As found on YouTube