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[ad_1] In between holiday shopping, parties, travel and more, holiday spending can really get away from us. Sure, you might’ve created a tentative budget for holidays. But if you weren’t careful, it could’ve been pretty easy to go over budget a little—or a lot.  Does this situation sound familiar? You’re definitely not alone. During the 2021 holiday season, Americans ended up with an average of $1,131 in holiday debt, with 65% of that being held on credit cards. And for most people, paying off holiday debt wasn’t a priority in January, which meant they carried debt over and incurred interest expenses on it. By February of 2022, 40% said they had not paid off their holiday debt. In fact, 20% of respondents said they carried a balance on their credit cards every month of the year. Reducing holiday debt, or paying it off as quickly as possible, can save you money in interest and save you from financial stress. Discover tips for paying off holiday debt in this piece. Tips for Paying Off Holiday Debt Only spend what you can afford in cash Pay off debt as early as possible Apply for a balance transfer card Cut down on unnecessary spending Snowball your debt to pay it off faster Use the avalanche method to pay down holiday debt Consolidate debt with a home equity loan Get another type of consolidation loan Leverage your tax refund 1. Only Spend What You Can Afford in Cash One of the best ways to avoid the holiday debt cycle is to reduce holiday debt to begin with. Create a budget for gifts, decor, food, travel and other holiday spending and stick to it. Only plan to spend what you can afford to pay for in cash during the holiday month. Planning on using credit cards for your holiday spending? Go for it—it could actually be beneficial. Credit cards may offer better security. Many have 0% liability policies, so if someone gets your card number and makes fraudulent purchases, you’re off the hook. Plus, rewards credit cards can be a great way to rack up cash back, miles or points as you shop for the holidays. Those rewards let you get more for your spending or save money on holiday spending. Just make sure you have the money set aside and pay the balance off immediately to avoid interest costs. 2. Pay Off Debt as Early as Possible In the excitement of the holidays, it’s easy to go above budget. You may need a last-minute gift or outfit for an event, or the present you had your heart set on for someone might cost a little more than you planned for. While it’s important to make efforts to stick to your budget, overages happen, and they aren’t the end of the world. If this does happen to you, pay off any debt you carry out of December as quickly as possible. When you sit down to do your January budget, look at the debt you have from the holidays. Can you pay it off within January so you’re only getting hit with one month’s interest?  For example, if you have $500 in holiday debt, that’s roughly $125 a week. See if you can make a budget plan for the month to make that happen. If not, move to a two-month plan. That would be roughly $63 a week, or less than $10 a day, needed to pay off the debt. Make debt easier to pay off faster by using a low-interest credit card to pay for things during the holidays. The less you’re paying in interest each month, the faster you can pay off your balances. 3. Apply for a Balance Transfer Card If you have decent credit, you may be able to get approved for a balance transfer card with a 0% introductory APR offer. Introductory periods can last from six months to a year or more, giving you more time to pay off debt without incurring interest expenses. You can transfer holiday shopping balances from higher interest cards to a new balance transfer card to save money and pay off your debt faster. UNITY® Visa Secured Credit Card – The Comeback Card™ Apply Now on OneUnited Bank’s secure website Card Details Intro Apr: N/A Ongoing Apr: 17.99% (Fixed) Balance Transfer: Intro: 9.95% for 6 months Annual Fee: $39 Credit Needed: Poor-Bad-No Credit Rates and Fees Snapshot of Card Features Unlike your Prepaid Card, UNITY Visa secured card can help you build your credit. Apply online in less than 5 minutes, and you could be approved today! No Minimum Credit Score required; low fixed interest rate of 17.99%; Fully refundable FDIC security deposit* required at time of application; if you have a min of $250 to deposit immediately, you can start now! No application fee or penalty rate Monthly reporting to all 3 major credit bureaus 24/7 online access to your account *See the Cardholder Agreement for more details. Card Details + 4. Cut Down on Unnecessary Spending Expensive habits can make it hard to pay off debt. If you want to make a bigger dent in your balance, think about giving up one or more luxuries or unnecessary items each month and using that money to pay down debt instead. Consider making the following changes—just for a little while: Cut your cable bill and trim other entertainment expenses Cook meals at home instead of eating out Consolidate errands so you drive less and spend less on gas Forgo a few luxuries at the grocery store  Go out for drinks fewer times a month 5. Snowball Your Debt to Pay It Off Faster The snowball method is a way to pay off debt that helps you get excited about the process because you see more movement toward your goal. Here’s how it works: List out the debts you want to pay off in order from lowest to highest balance. Make minimum payments on everything but the lowest balance. Pay as much as you can on that one. The smallest balance gets paid off fairly

[ad_1] This post originally appeared on Arrest Your Debt and has been republished with permission.  Are you tired of living paycheck to paycheck or relying on others to live a comfortable lifestyle? With a plan and determination, you can become independently wealthy and live life on your terms. Most people aspire to achieve financial independence, but sometimes, it seems more like a dream than a possibility. In reality, the independently wealthy lifestyle is achievable for teachers just as it is for entrepreneurs. In this article, you will learn 11 ways you could handle your money and create wealth–on your terms. What Does It Mean to Be Independently Wealthy? What Do Most People Perceive Independent Wealth to Be? Do You Need Millions to Be Independently Wealthy? How Do You Know You Have Independent Wealth? 11 Tips to Become Independently Wealthy Be Financially Disciplined Create a Monthly Budget Have an Emergency Fund Make Savings a Priority Avoid Debts Calculate Your Net Worth Invest Your Money Learn New Skills or Hone Your Current Skills Increase Your Cash Flow Invest in Your Family and a Home Set Goals Why Focus on Building Independent Wealth? Sacrifices to Become Independently Wealthy What Does It Mean to Be Independently Wealthy? Being independently wealthy means you have enough money you never have to work again to pay for your expenses, or need monetary support from others. Independent wealth is different from financial independence. Financially independent people do not rely on other people to pay their bills–they have a steady income from employment, business, or passive income streams. When you’re independently wealthy, you not only pay your bills without help, but you also do not need to work to earn any additional income. How much money do you need to be independently wealthy? This number is different for everyone and is entirely dependent on your dreams and aspirations in life. It could mean you have millions of dollars earning interest, or a few hundred thousand. It depends on the lifestyle you prefer. What Do Most People Perceive Independent Wealth to Be? Are you independently wealthy because you drive a Ferrari? Most people view independent wealth as unachievable because they have misconceptions about what it is. When you think about someone who has achieved it, do you see someone who: Has a few sports cars in their garage? Lives in a high-end neighborhood in a massive house? Makes millions of dollars every year from their business? Wears high-end fashion clothes? While some wealthy individuals live in the manners described above, you may be surprised to learn that most independently wealthy people like to blend in. To achieve a high level of wealth, most people avoid lavish lifestyles and: Live in a nice but not extravagant neighborhood Drive an ordinary car Dress in an ordinary manner Work a regular job – but work harder than everyone else Have the money discipline to build wealth over time Most independently wealthy people live average lives. They take a vacation once in a while, enjoy a drink at the local tavern, and do everything else most people do (except living beyond their means). Do You Need Millions to Be Independently Wealthy? The bottom line is you need enough money to be financially free without ever going to work. This doesn’t mean you have to stop going to work, but being financially free gives you this option. The amount you need depends on your preferred lifestyle. If you have enough money to meet your expenses without having to work for a monthly income, you may be close. To continue living without relying on having to earn money, you must create passive income. For instance, if you make $5,000 every month from your investments (passive income) and your monthly budget is $3,500, you have already created independent wealth. This means that you can live indefinitely without ever going to work as long as you do not increase your monthly expenditure. If you spend $3,500 every month, you will need $42,000 every year for your budget. Most financial experts agree you need at least 25 times your annual expenses to be labeled “independently wealthy”–that is: $42,000 x 25, which is $1.05 million. You also need to account for twice your discretionary spending, which might be up to $60,000 every year. This means that you need: 1,050,000 + (60,000 x 25) = $2,550,000 You need to save up to $2.55 million or have passive income that gives up to $102,000 every year. Only then are you considered “independently wealthy.” How Do You Know You Have Independent Wealth? Building independent wealth requires discipline and diligence. The concept of delayed gratification, where you enjoy less today to enjoy more tomorrow, has to be applied here. When you get there, you will know if: You don’t have to think of your financial situation before making a decision You can live below your means and feel content You have enough passive income to fund your lifestyle You’re worth more than 20 times your annual income You can choose not to work and still support your lifestyle The above are not the only indicators that you’re independently wealthy. But they will help you realize your financial position. 11 Tips to Become Independently Wealthy Unless you win the lottery or are given a large inheritance, it takes time to create wealth. If you decide you want to be independently wealthy in the future, it may take you many years to achieve it. However, with discipline, you can do it. Below are 11 simple wealth-building concepts to help you get where you want to be. 1. Be Financially Disciplined Financial discipline helps you take control of the money you earn. If you never control how you spend your money, you will never have enough to be financially free. Below are a few pointers to develop your financial discipline. Avoid Spending More Than You Earn If you spend a dollar more than you earn every month, you’ll have to survive by managing increasing debt. This

[ad_1] Article updated December 14th, 2022. There’s always a lot of buzz about the extreme ends of the credit scoring spectrum. How can you get excellent credit? What should you do if you have bad credit? Less attention is paid to fair credit, which is ironic considering that’s where a large segment of consumers land. While credit scoring models and lender standards differ, the average American credit score is often nestled firmly in a range that could be considered fair. This may leave many consumers wondering what defines fair credit, how they got a fair credit score, and what they can do to improve it. Get Your Free Credit Score & Monitoring Plus Weekly Updates From Our 50+ Experts Get It Now Privacy Policy What is Fair Credit? Because there are many credit scoring models available, and because lenders may define credit differently, there’s no hard definition for a fair credit score (or any other type, for that matter). However, a typical breakdown of credit tiers looks like this: Excellent Credit: 750+ Good Credit: 700-749 Fair Credit: 650-699 Poor Credit: 600-649 Bad Credit: below 600 Again, the definition of fair credit is open to interpretation, and may differ based on the credit scoring model used, the type of credit you’re applying for at the time, and the interpretations of the lender. The credit bureaus don’t even agree; Experian considers a fair score to be in the 580 – 669 range, while Transunion has stated that 668 – 719 is middle of the road. To further complicate matters, credit scoring models are frequently changing. Here’s a good rule of thumb: if your credit lands firmly in the middle of the above ratings (and keep in mind, there is some wiggle room), chances are that your credit score might be considered fair by at least some lenders. Why Do I Have Fair Credit? If your credit score is hovering in the fair range, there’s good and bad news. You probably don’t have many negative items on your credit report, but your credit isn’t exactly impressive either. Luckily, fair credit isn’t a permanent state, and over time you can move the needle into the good or excellent credit range. One cause of your fair credit could be your credit utilization rate, or the amount of available credit you have tied up in debt. This typically applies to credit cards – if you have a credit card with a $1,000 credit limit and a $500 balance, your utilization for that card is 50%. Generally, you should keep your utilization of all available credit under 30%. If your utilization is too high, it could be dragging down your score a bit. Another reason could be a late payment on your credit report. Payment history is the largest determining factor of your credit score, and a missed or late payment can drag your score down. If the late payment on your credit report is in error, you may be able to dispute it and get it removed from your report. If it’s valid, you will just have to avoid missing payments in the future to build up a better payment history. Over time, the effect of a late payment lessens, and after seven years it will disappear from your credit report entirely. A limited credit history can also lead to fair credit. If you just recently started building credit within the past year or so, your credit profile may simply be too thin for an impressive credit score. Over time, as you let accounts age, add new accounts, and manage your debts responsibly, your credit score will grow. The best way to grow your score is to use common sense: make all your payments on time, don’t borrow more than you can afford to pay back, and don’t max out your credit cards. Build Your Credit with the Avant Credit Card Avant Credit Card Apply Now on Avant’s secure website Card Details Intro Apr: N/A Ongoing Apr: 28.74%-29.99% variable Balance Transfer: N/A Annual Fee: $39 Credit Needed: Fair Rates and Fees Snapshot of Card Features Fast and easy application process We may periodically review your account for credit line increases Help strengthen your credit history with responsible use No hidden fees Use online banking to conveniently pay your card through our online portal, 24/7 Zero fraud liability for unauthorized charges Checking your eligibility does not affect your credit score Avant branded credit products are issued by WebBank, member FDIC Disclosure: If you are charged interest, the charge will be no less than $1.00. Cash Advance Fee: 3%, Min $10 Late Fee up to $39 Card Details + Having fair credit isn’t a bad thing—but it’s not exactly good, either. If it’s time to start building your credit score, what can you do? Give a starter credit card a try, like the Avant Credit Card. The Avant Credit Card has no security deposit, no penalty APR and a quick application process. Avant allows you to see if you can qualify by providing you with the credit line and annual fee you qualify for—all without affecting your credit score. Monitoring Your Credit To track your credit progress, you should monitor your credit report and credit scores. You can check your credit reports from each of the three credit bureaus for free annually at AnnualCreditReport.com. As for your credit score, you can check two of your credit scores, updated every 14 days, for free at Credit.com.If you’re concerned about your credit, you can check your three credit reports for free once a year. To track your credit more regularly, Credit.com’s free Credit Report Card is an easy-to-understand breakdown of your credit report information that uses letter grades—plus you get two free credit scores updated every 14 days. You can also carry on the conversation on our social media platforms. Like and follow us on Facebook and leave us a tweet on Twitter. The post What Exactly is “Fair” Credit? appeared first on Credit.com. [ad_2] Source link

[ad_1] In This Piece Gather Information Request Verification of Debt File a Dispute Make Sure It’s Listed as Medical Debt Can You Negotiate Medical Bills in Collection? Know Your Rights Are you struggling with medical debt? Are you tired of medical collectors calling? If so, you’re not alone. Studies show that Americans owe more than $88 million in medical debt. Reports also show that 20% of American households claim to have past-due medical bills.   Fortunately, the government has made changes in some of the rules regarding medical debt. Understanding your rights and how to deal with medical debt collectors can help reduce the number of unwanted calls you receive.   No matter how big or small your medical debt is, it can impact your finances. Here are tips for how to deal with debt collectors for medical bills. Gather Information When a medical collector contacts you, your first instinct may be to pay the debt. Don’t make this mistake. These collection agencies handle hundreds of thousands of claims. Mistakes happen. There are also a lot of scam agencies that are not authorized to collect medical debt. You don’t want to pay a debt that isn’t yours or pay the wrong agency. To prevent this from happening, do some research. Start by researching the collection agency. Make sure the agency can legally work in your state. Most states require debt collection agencies to obtain a license. Ask the medical debt collector for their information, including their name, name of agency, street address, company phone number and license number. You can then contact your state agency to make sure this information is correct. It’s also not a bad idea to contact the collection agency directly to make sure the medical collector contacting you works for them. Secondly, ask the collector for information about the debt. Find out the exact name on the debt, health care provider and date of services. This data may help you decide if the debt is yours or not. Can You Ignore Medical Debt? You don’t want to ignore medical debt. If the debt belongs to you, medical collectors can continue to call you. If it’s not yours, you only have 30 days to file a dispute. Request Verification of Debt If you don’t believe the medical debt belongs to you, take the next step by filing a dispute. On the other hand, if you believe the debt is yours, take one more step to make sure. Ask the medical collector to send you an itemized list that includes coding. By law, you have a right to this information. If the medical collector can’t provide this information, try contacting the health care provider directly. Once you receive this report, check the names, dates and services listed to make sure everything is correct. You can also contact your insurance provider to request a claims history report. This data can show if the insurance company paid for these services. Also, keep in mind that in most states, minors aren’t able to enter into a legal contract. This means that in many cases they’re not responsible for medical debt accrued when they were a minor. If you were a minor at the time of this debt, be sure to file a dispute. File a Dispute You have the right to file a dispute if you think the medical debt is incorrect or doesn’t belong to you, but you must act fast. The law only gives you 30 days to file a dispute from the first contact. In your dispute, explain why you think the debt is not yours, note any mistakes you found and provide any documentation. Once complete, make a copy of your letter and any backup information first before sending your letter by certified mail. Once the collection agency receives your letter, they must stop contacting you and must investigate your response. They also must notify you in writing of the results of the investigation. If the agency can’t verify the debt, they must stop the collections process. If, on the other hand, they find the debt does belong to you, they can continue to contact you. Make Sure It’s Listed as Medical Debt Medical debt can impact your credit score. To determine this impact, request a copy of your credit reports. You can get one free copy of your credit report each year from the three top credit reporting agencies: TransUnion, Equifax and Experian. Once you receive your credit reports, make sure the information listed is correct. You also want to make sure the credit reporting agencies list the debt as medical debt. This factor is very important, because reporting agencies must handle medical debt differently. How? Paid-in-full medical debts are removed from your credit report. Starting in 2022, credit reporting agencies will remove medical debt from individuals’ credit reports as soon as it’s paid in full. Credit reporting agencies will wait before listing medical debt. Credit reporting agencies will now wait six months to one year before listing medical debt on credit reports. Credit reporting agencies will only list large medical debts. Starting in 2023, credit reporting agencies will no longer list medical debt that’s less than $500 on credit reports. Despite these changes, unfortunately medical debt can still impact your credit. Even a slightly lower credit score can affect your ability to obtain a credit card, get a personal loan or purchase a home. If you find any errors on your credit report, including a medical debt that isn’t correctly listed as medical debt, file a dispute with the credit reporting agency. You can send the credit reporting agency a letter that explains the error, why you think it’s wrong and any proof you have of the mistake. Can You Negotiate Medical Bills in Collection? If this debt is yours, now’s the time to focus on how to resolve your medical debt. Most collection agencies are willing to set up payment arrangements to help you pay the debt off. However, you may want to try