Lynnette Khalfani's Amazon Blog
Lynnette Khalfani's Amazon Blog
- How to Avoid Debt and Holiday Over-Spending
December is here, and that means you can’t walk into any retail establishment or department store without being inundated with sales offers, promotions, and other marketing gimmicks designed to get you spending early for the holiday season. Well, I don’t want to dampen your year-end festivities. But I would like you to think about some smart ways you can avoid overspending and debt during the holidays. Start with these ideas: * Take a budget – and a buddy Most of us take shopping lists into the mall when we go hunting for gifts for family members, friends and co-workers. What we should be taking – in addition to our lists of who’s getting what – is a budget and a buddy. Your budget should include a total dollar limit on how much you will spend. Don’t make the mistake of writing down 10 people on our gift list – but not having a specific budget cap. If you do, you could end up spending, say $1,000 for those 10 gifts. But let’s assume that you knew realistically that you could only afford to spend $500 (and we’re talking cash here … not credit!). Well, then you know that the maximum you should spend per person is $50, in order to stick to your $500 overall budget. Take a buddy shopping with you also to help you stick to your plan. Ideally, your shopping buddy will keep you honest and accountable. He or she can also drag you – if necessary – out of the mall if you can’t curb your spending impulses. * Use more cash than plastic Studies show that shoppers tend to buy more than they had planned (in terms of quantity) – and to purchase higher-priced items when they use credit cards versus cash. When you have to fork over cold, hard dollar, psychologically, it makes you think about the value of your purchases. So before you go on a gift-buying binge, hit the ATM first – armed with your budget – and take out exactly the maximum amount you’ve determined you can afford. Later, when you are out of cash, that’s it. Leave the mall or whatever store you’re in. Resist the temptation to whip out plastic to buy more stuff. And while you're at it, say "no" to those tempting offers you'll get this season from credit card companies offering to let you skip payments for a month or so. That'll just cost you more in interest payments in the long run. * Don’t buy gifts for everyone Many of us have been brought up to believe that you absolutely must buy a gift for those closest to you – even if you have 7 siblings and 18 nieces and nephews. A better strategy, especially for those with big families, is to buy a gift for the whole family. So instead of buying your sister a $60 sweater, buying her husband a $45 bottle of cologne, and spending $30 on each one of their three children, try purchasing a family pack of movie tickets for the whole gang. That’ll run you $30 to $35 depending on where you live). Or if movies aren’t their thing, maybe they’d love to have an annual family membership to the local zoo, a regional museum or their local YMCA. The point is to get something the whole family can enjoy – preferably together – without blowing your budget. * Make holiday items that don’t cost much You can create some wonderful holiday gifts on your own, by making them. Some ideas: a special photo album, a picture collage, newspaper clippings of someone famous in your family’s history. All of these things require very little money to create. Don’t forego the opportunity as well to create special traditions. Lots of people have parties and family celebrations. During those gatherings, start an annual tradition, such as a family songfest, where you sing impromptu lyrics about “The Best Holiday Ever” or “What I Like Most About The Holidays Is …” Don’t make it competitive. You’re not putting on a professional talent show. In fact, it can be a fun, or humorous time. (Well, if any of you heard me sing, I’m sure you’d crack up laughing!). Here’s the bottom line: You’re really creating memories, and starting traditions that may last for generations to come. Follow these tips and you’ll have a less stressed holiday season … and you’ll avoid going into debt to boot! After all, you DO want to start off 2008 on the proper financial footing, right? Lynnette Khalfani-Cox - The Money Coach http://www.themoneycoach.net This is syndicated from The Money Blog, and written by lynnettekhalfani@gmail.com. - Ask Lynnette
Good morning
I heard you on the Russ Parr morning show speaking about the statute of limitations for an outstanding bill on a credit report. You said how it starts from the last payment/acivity on the acct, and how if I were to send in a payment, it would "restart the clock." My question is, is there any way the creditor or bill collector can restart the clock? I haven't had any contact with/from them in several years, but I've heard through conversation that if the creditor or bill collector does some activity on that acct, it can restart it that way.
Thank you
D.T.
Hi D.T.
Thanks for listening to me today on the Russ Parr Show. To answer your question: No, there's no way that activity by the creditor or the bill collector can "re-start" the clock. The lock is specific and very clear on this point. When negative information stays on your credit report, it's there from 7 years "from the date of last activity" by the consumer - not the creditor. Otherwise, bill collectors would be constantly updating people's account or doing things to keep negative information on a person's credit report forever.
Best,
Lynnette
Lynnette Khalfani-Cox - The Money Coach http://www.themoneycoach.net This is syndicated from The Money Blog, and written by lynnettekhalfani@gmail.com. - Zero Debt: The Ultimate Guide to Financial Freedom
IMAGINE HAVING $100,000 IN CREDIT CARD DEBT!
Debt is the single worst four-letter word in the English language. Debt keeps you up at night. Debt drives you to drink, fight with your spouse, have anxiety and experience a whole host of other miseries that you never imagined.
I know, because I was once drowning in debt. In fact, I had $100,000 in credit card debt! Fortunately, I now know what it’s like to have Zero Debt and it’s great! If I could get out of debt, without filing for bankruptcy, you can too.
Americans have a record $2 trillion in personal debt, mainly from credit cards and auto loans. Here’s what that may mean for you, someone you love, a next-door neighbor, or a co-worker:
• You probably feel like you’re living paycheck to paycheck
• You frequently find yourself worrying about bills
• You aren’t saving/investing enough for the future
• You haven’t protected whatever assets you do have
• And within a decade, statistics show that 1 in 10 of you will file for bankruptcy
Already, 1.6 million households in the U.S. go bankrupt each year. And people age 25 and under are the fastest-growing segment of the U.S. population filing for bankruptcy.
Young people are coming out of college with massive amounts of credit card debt, as well as student loans. They’re not taught enough about financial literacy, so they’ve simply inherited their parents’ poor money management habits and freewheeling spending patterns.
The typical American household has 13 cards – including debit, retail and credit cards. For those carrying a balance, the average credit card debt outstanding is roughly $13,000, and the average annual interest rate being paid on that debt is 15%. Making minimum payments means it’ll take you 25 years to pay off that debt!
The truth of the matter is that excessive personal debt has become a national crisis. In fact, chronic debt is the top financial plague afflicting Americans of all ages, backgrounds and income levels. And if you’re not careful – really careful – you or someone you care about is going to get crushed by it.
People deep in debt generally fit into these two categories:
1) Over-spenders and poor money managers; and
2) Individuals who fall victim to circumstances like Downsizing, Death, Divorce, Disease or Disability. I call these circumstances the five “Dreaded D’s.TM”
Regardless of your situation, you can achieve financial freedom.
Whether you’re on the verge of filing for bankruptcy or you’re a high wage earner who still frets over money, this booklet is for you. You can be free from financial worrie