[Never] Videos
How Debt Consolidation Becomes the ‘Never, Never Plan’ | DFI30 | Ep. 423. Did you know that bankers often refer to debt consolidation loans as a ‘never, never plan,’ meaning the borrower will never become free of their debts? This may sound odd since consolidation loans often make total debt cheaper to service through a lower interest rate. But banks know how to keep their clients with just the right amount of debt to continue profiting from interest charges. On today’s podcast Ted Michalos and Doug Hoyes breakdown just how exactly banks keep their customers in a ‘never, never plan,’ and offer practical advice to help borrowers actually eliminate their debts. Tune in!
Links:
Risks of Debt Consolidation Loans – The Hidden Traps: https://www.hoyes.com/blog/debt-consolidation-loans-the-hidden-trap/
Hoyes Michalos Debt Repayment Calculator: https://www.hoyes.com/debt-repayment-calculator/
Hoyes Michalos Debt to Income Ratio Calculator: https://www.hoyes.com/debt-to-income-ratio-calculator/
Government of Canada Credit Card Payment Calculator: https://itools-ioutils.fcac-acfc.gc.ca/CCPC-CPCC/CCPCCalc-CPCCCalc-eng.aspx
#debt #DebtFreeIn30 #DFI30 #neverneverland #NeverNeverPlan #DebtConsolidation #DebtSettlement #DebtRelief #DebtReliefOptions #DebtFree #Podcast #PersonalFinance #Finance #Finances
pros and cons of debt consolidation
If you overlook some risks and forget about long-term consequences, spending money as you please seems a quite tempting idea. For instance, instead of calculating what sort of mortgage payment you can actually afford, why not try to purchase your $600,000 dream home? You only live once, right? And, since you already crossed that line, why not taking a sizable loan to buy yourself a brand new $60,000 SUV instead of driving around your dumpy old car for another year or two? Wouldn’t that be awesome? While you are at it, why don’t you go shopping and max out all your credit cards to get everything you always wanted? Don’t think about the credit card interest, just go there and do it. Well, if all of this sounds good but probably too crazy for you, it’s because it is. However, many Americans haven’t been thinking much about long-term consequences these days.
With a federal government that spends money as it grows on trees when it comes to money management, our society is lacking role models. Our government debt is currently sitting at 28 trillion dollars and yet all our leaders think about is spending more and more money. Americans have now officially more debt than ever before. According to the Federal Reserve Bank of New York, a major increase in credit card spending and home purchases caused U.S. household debt to jump by $313 billion, or 2.1%, in the last quarter, marking the largest increase in consumer debt in seven and a half years.
Economists are worried we might be repeating the same disruptive spending behavior we did in the past. After being showered with trillions upon trillions of dollars by the federal government, you would imagine that Americans would be in pretty good financial shape these days, right? Sadly… that’s not the case. Most of that money only contributed to making the gap between the wealthy and, well… “the rest of us,” even larger. According to a new study from Oxford Economics, Americans added nearly $4 trillion to their savings during the health crisis recession, but most of the gains went to the wealthy. The study estimates that consumer spending in the coming months and years will be strongest at the top and significantly lower at the bottom 99%.
Rising inflation will play a major role in the deterioration of our finances and the collapse of our spending. Americans are already seeing living expenses go up while the price of consumer goods keeps on hitting new record highs. Finding an affordable home to buy has become simply impossible, and with rent prices soaring, more than 12 million families are still in danger of being evicted. The federal moratorium has ended, but after major backlash, the new administration decided to come to the rescue and issued a targeted moratorium in areas hardest hit by the virus outbreak. The move replaced the CDC nationwide evictions freeze that expired last Saturday, but major legal questions still remain.
Despite affirming to have asked for legal advice from constitutional scholars to determine whether the CDC had the legal authority to issue a new evictions action, the President passed the new action without Congress authorization. He said that even if the courts invalidate this new moratorium, it will buy some time for his administration to get aid more money for rental relief. However, the federal government allocated $46 billion in rental assistance just a couple of months ago. The question remaining is: where did all that money go? It doesn’t add up.
Even more worrying is the fact that the President of the United States ignored the U.S. Constitution to get more money using the eviction crisis as justification. It is safe to say that if he actually gets more money, most part of these dollars won’t end up assisting those who need it the most. Without a question, the eviction crisis should be averted. Is the President choosing the right approach to prevent it? Absolutely no. Sadly, his approach is typical of how most Americans deal with things. Most of us tend to act impulsively, without considering the impacts our actions might have in the long run. We throw money up in the air expecting it to fix all of our problems as if tomorrow will never come, but “tomorrow” always arrives eventually, and when it finally does, we will have to face a painful reckoning. Unfortunately, our “tomorrow” looks darker and more chaotic most people would dare to imagine.
10 Reasons Why You Will Never Get Out of Debt!
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5 Reasons Why You Will Never Get Out of Debt!
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In this video, I share with you how you can avoid debt forever and pay off debt faster using the Debt Avalanche Method!
If you liked this video, you will also enjoy:
? How To Be Rich and Successful At A Young Age: https://www.youtube.com/watch?v=py0qufx9phk
? How To Make $100/Day With No Money: https://www.youtube.com/watch?v=Mdgt7yoCKeQ
Music Credit: Bensound – Dreams
If you have any amount of debt to pay off, you’re probably wondering what debt elimination strategy will get you back in the positive in the fastest time frame possible. In the United States, debt has been skyrocketing year after year with personal consumer debt surpassing $4 trillion dollars in 2019 which means that Americans could be doing a much better job when it comes to paying down their debts. In this video, I am going to share with you one of the quickest methods of paying down your debt: The Debt Avalanche Method. And if you’re new to the channel, hit the subscribe button below for more informative content!
You’re probably asking yourself, what is the debt avalanche method? Do I need to be able to ski? Will it be cold? The Debt avalanche is a strategy of paying off what you owe by prioritizing loans and credit card balances with the highest interest rates. You see, while it sucks to have to look at a huge debt balance every time you check your bank balance, what’s worse is paying annoying interest charges. At least when you accumulated debt by buying goods and services you get value out of those things but interest charges are zero value-added expenses. Therefore, the goal of the debt avalanche is to minimize the amount of interest you pay, allowing you to put more money towards paying off the principle which in turn will allow you to be debt-free much sooner than if you were to use other strategies like the debt snowball.
Step #1: List out all of your debts
On a piece of paper or an excel spreadsheet, list out each one of your debts from the highest interest rate to the lowest. This could include anything from money you owe your brother, to credit card debt and even your car loan just to name a few. An important point to note is that you are arranging your debts from the ones with the highest interest rate and not the highest interest charge. While a large balance with a smaller interest rate may be costing you more money every month than the one with the highest interest rate, in principle, having the loan with the highest interest rate still outstanding is still the most costly.
Step #2: Make all your minimum payments
After you’ve listed out all of your debts from the highest to lowest interest rates it’s now time to write down each of their respective minimum payments. Every month, it is critical that you make the minimum payments on each one of your debts as missing payments will not only increase your debt but will also affect your credit score. In fact, being just 30 days late on a payment can reduce your credit score by up to 100 points making getting a future mortgage or even a job that much tougher. As a best practice, set up a reminder in your phone to make each one of your payments because often times life can get busy and having a reminder means one less you have to think about.
Step #3: Pay down extra on your highest rate debt
You’ve now set up your debt listing and have made all of your minimum payments, it’s now time to really get the debt avalanche rolling. In order to do this, what you’ll want to do is put any extra disposable income you have towards your highest interest debt. And if you’re thinking to yourself, I wish I had extra disposable income then it’s time to roll up your sleeves and get to work. Most people have more free time than they think and one of the best ways to use this time to make more money. This could be in the form of taking on more shifts at work or picking up side projects. No matter what this extra work looks like, the key is to funnel all that extra income towards your highest interest debt allowing you to pay it off as fast as possible.
Step #4: Keep the avalanche rolling
At this point, you are making solid progress at paying down your debts by prioritizing them and earning extra cash to put towards them. Within no time, you’ll be able to stroke off the first debt on your list allowing you to begin to focus your attention on the second one. In order to keep the avalanche rolling, you will need to do three things: continue to make the minimum payments on each debt, earn extra income and finally add all previous debts’ minimum payments to your new monthly debt contribution. So for instance, if the debt you just paid off had a $200 minimum payment, you will add that amount to the minimum payment contribution on your next highest debt creating an avalanche effect of a much greater payment. And this larger payment, when compounded with extra income you’re earning, will make your debt load evaporate in no time!
Saving her can land him in a hangman’s noose at low tide in Charles Town Harbor. Repaying her debt to him will consign her to a life worse than death.
When confronted with a forced marriage, Travay Allston flees her stepfather’s Jamaica plantation and dives into the sea. Death would be preferable to life with Sir Roger Poole, a drinking, gambling, scoundrel whose advances make her skin crawl.
Lucas sails the high seas as the dreaded Captain Bloodstone. He is on a quest to find his mother, a woman last seen clapped in irons by the Spanish. As his ship slips past Jamaica, he spies a young woman plunge into the sea. A prize of such beauty must be saved and Lucas dives in to rescue her. The last thing Lucas needs is to get involved with Travay, a childhood friend who caused him nothing but trouble. Especially now that she’s become a stubborn, alluring young woman.
Lucas delivers Travay to her aunt in Charles Town and washes his hands of the affair. Or so he thinks. But when Sir Roger shows up demanding that Travay marry him or face the wrath of Charles Town’s newest council member, Lucas feels that familiar boyhood tug on his heart. Will this wanted pirate of the crown risk his life to save Travay a second time? Betrothed to a man she hates, will Travay repay her debt to a pirate by marrying Sir Roger in exchange for his promise to pardon Lucas? And if she does, will such a rascal keep his word? Falling in love with the pirate was never part of her plan …
Most books on this subject will teach you to first pay off your debt before doing anything else. In this book, Curt Whipple explains how FOCUSING on paying off your debt can be the key to your downfall and total frustration.
Curt Whipple teaches you the keys to becoming FINANCIALLY FREE and in the process you will also become debt free.
KEYS like:
-How to become Financially Free, on your current income, without changing jobs,and regardless of your debt.
-Why focusing on debt can keep you broke forever!
-What Financially Free people do, that Broke people do not.
-How to find $300-$600 of extra cash each month. (money you never knew you had!)
-How $8,000 invested can secure a comfortable retirement.
-How to generate over $105,000 with pocket change.
