How Time Management Help You From Debt

I listened to a training yesterday afternoon on time management. How to eliminate distractions and become relentlessly focused. I have probably attended and listened to more than a dozen time management trainings during the years. Yet every time, I do well for a week or so and then the bad habits creep back in. Checking emails throughout the day. Surfing the web. Listening to a podcast instead of writing a blog post!

All of these actions are necessary, but I allow them to occur when I am “at my best”, in the morning. Which takes me away from getting my important tasks done when I am most energetic and creative. Which means these important tasks get done later in the day and take time away from my wife. Time I can never get back!

As I was taking notes during this training lesson, I thought about the millions of people who are trying to get out of debt. How many distractions are they facing that knock them off of their plans? What money did they spend today that they can never get back?

This one statement from yesterday’s notes really stood out for me and my struggle with managing my time: “Am I willing to spend the next 30 minutes reading emails instead of writing my blog post? Because I will never have those 30 minutes back again!”

I realized that I have not written any blog posts for weeks. All because I have allowed other things to become more important. Let enough things get in the way and the blog posts moved to the bottom of my to do list. Then realized that two months have passed by with nothing to show for it on my website!

We can use this thinking for gaining control of our debt just like gaining control of our time. Let’s substitute “money” for “time” in my statement from above. “Am I willing to spend this $40 on a movie and snacks? Because I will never have this $40 back again!”

We think we will get that $40 back on our next paycheck. But if we really think about it, that $40 is unique. We control it today because it exists today. We can save it, spend it or apply it towards our debt. But whatever we do with it, we will never have that same $40 again!

I can “steal” 30 minutes from my wife to write a blog post. I can “steal” $40 from my next paycheck to go out to a movie tonight. Or I can get in control of my time and money instead.

Am I saying never go out and enjoy life until your debt is paid off? No way! That is a guarantee for failure! Some few people may be able to eat dog food, use candles for lighting and live a spartan lifestyle the entire time they work their debt plans. But the vast majority (including me!) need to have some level of fun in order to stay on the plan.

Can you go to a matinee? Can you go on a weekday instead of Friday or Saturday night? Many theatres here have $5 Tuesdays where you can see a new movie any time on Tuesday for $5. Can you watch the movie and not buy any snacks? Can you stay home and rent/download a movie for less than $7?

All of these options give you a reward and allow you to save at least half of that $40. You may be able to budget for this once or twice a month and stay on your plan to get out of debt.

Good time management does not mean never open your emails or surf the web again. It means you focus on your most important tasks first, then budget some time later to do those things. Time when you do not need to be at your most energetic and creative. And time that is not budgeted elsewhere like time with your family.

Good money management is the same. You budget your income and expenses but you build in a little bit of “fun money” as a reward for being focused on your budget. You don’t rationalize using money from next week’s paycheck to pay for a night out tonight. But you also don’t stop living life!

 

Tricks To Get Out From Debt

Have you ever tried to focus on accomplishing five different tasks at the same time? Or three? How did you end up performing them? Were you satisfied with the outcomes?

I am a linear kind of guy. When I try to do two things at once, both suffer. They take longer to accomplish than if I worked one from start to finish and then tackled the second project. If you have ever heard the phrase “the sum of the whole is greater than the sum of the parts”, this describes my multitasking skill!

Paying off debts can be the same. The commercial I hear on the radio about “put an extra $10 towards each of your loans” sounds good. After all you are paying back some extra principal. But when you do this with a car loan, two credit cards and a store loan, you do not see any progress.

I always recommend to my clients that they pick ONE debt to throw their weight against. Pay the minimums on everything else and put the extra principal towards that one account. Highest interest rate, lowest balance, I do not care. I want my clients to see BIG progress against a bill.

When I was in the midst of my debt, I was paying extra towards each debt. And I was getting more and more frustrated. Why? Because I was not seeing any real progress. The extra $50 or $100 towards our car loan did not look like much compared to the $10,000 balance. But when we began to pay $500 extra each month towards our $2000 orthodontist balance, we saw big decreases FAST.

My motto is “Know Debt + KNOW Debt = NO DEBT”. The results you see from seeing that one debt drop quickly keeps your heart in the game (KNOW Debt). This supports your brain (Know Debt) and the two working together will get you to NO DEBT.

Think of the sun. When it shines down on you, you feel warmth. But when you shine it through a magnifying glass, you have the power to burn things!

Or think about boiling water on your stove. If you put a pot of water out in the sun, the water gets warm but only tepid. Put that same pot on a stove and the water begins to boil rapidly.

Focus your extra money on one debt at a time. You will remain excited about your plan towards debt freedom because you will see and feel positive progress. The intensity of that magnifying glass will burn through your debts in no time!

Would you like the six tools and strategies that I used to pay off ALL of my credit cards, car loan and home mortgage? Without living on dog food? Without having to earn $100,000 per year? Then click here: My Get Out of Debt Tools

Phil Danley is a certified life breakthrough coach, a speaker and is the creator of ConsumerDebtCoach.com. He and his wife paid off their credit cards and loans in 2012 and paid off their mortgage in 2014.

If you are struggling with debt, Phil will help you to get out of debt too!

 

Benefit of Installment Loans

The irony is that the only way to improve your score is to prove you can repay any money you have borrowed. But your opportunities for proving yourself to lenders are limited when you have a history of poor credit so many people are left feeling like they are stuck in this situation without a hope of improving their profile.

Luckily, there are now a number of lenders offering installments loans to those with bad credit to help them improve their financial profile. It’s important not to view these loans as “free money” however, particularly if it is your first time borrowing, and remember that you will have to pay it back with added interest.

If you can prove you have a steady, reliable income then your bank may offer you a personal installment loan. Your annual salary may need to be above a certain threshold, and you will need to give proof of your ID and home address, as well as give references to vouch for your character if you are a new customer.

If you have been with your bank for a long time and aren’t in a large amount of overdraft debt, they are more likely to give you a number of suitable options so you can improve your situation. They may suggest increasing your overdraft facility, taking out a credit card or applying for a personal loan.

You will need to consider your options carefully and work out what you can afford to pay back. If you’re simply looking to improve your credit score, start small by borrowing a minimal amount that you know you will be able to pay back each month. Missing repayments with have a negative affect on your score, which is the last thing you need.

If your bank doesn’t accept your application, there are still other options you can try. Bear in mind that each application this will have an impact on your overall score – a negative one if you are repeatedly refused – so try to leave some time in between applications to avoid this happening.

If you don’t have much luck with your bank, you could always try looking online for a personal installment loan. You will need to make sure you apply through a reliable lending source that can connect you with trustworthy partners that won’t take advantage of your situation.

Unfortunately, many lenders that advertise their services to those with poor credit will charge higher interest rates, meaning the borrower ends up with more financial struggles in the long run. In order to avoid this, look for lending companies that advertise low APR that ranges from 5.99% up to 35.99%.

Personal loans are normally for small amounts (as opposed to a mortgage, for example) but can be available up to £25,000.Don’t be tempted to borrow more than you can afford to pay back, as this will simply lead to you falling into debt and further tarnishing your record.

When you are taking steps to be approved for borrowing, your monthly repayments will be taken into consideration. Therefore, you shouldn’t be accepted for a larger amount than you can afford to pay back. It’s important to work out how much you can spare of your monthly income to avoid missing repayments – this way you will keep your score in the green.

 

How To Manage Your Debt

Before you can really start to make real money, you will have to deal with the debt you might have accrued through earlier borrowings. Most people get themselves into financial difficulties through, borrowings made on credit cards. This is the primary product used by the banks to create debt in peoples lives, the interest on the capital borrowed that this creates for the banks, can keep people in debt for their whole life. Injudicious use of credit cards is promoted by a constant bombardment through the media of a buy now pay later philosophy, A constant call to our egos, that stokes discontent within lives. If you don’t have money you cannot have respect, without these material possessions, the money,the girls, the cars, you are nobody. With this continual disparagement, we compare ourselves to others and begin to believe, that we deserve all sorts of things that others may have had to pay a heavy price to obtain.

To break this cycle of ever increasing debt the first thing that has to change is your mindset. You must believe you are worth something, that you are valuable, and are a special and unique person. This is not an easy thing to perceive, especially if you have had a life full of people telling you something other than this. To have an identity, to know who you are, is a place of contentment, If you are content, you will stop striving for things, if you are happy, it does not matter what you have or do not have. You are created in the image of God, allow Him to define you, God say’s you are fearfully and wonderfully made, he took his time putting you together, He thought about what your purpose was and gave you the tools to achieve that purpose. This God sent His Son who we killed, but that was part of the plan, because without His death the Comforter could not come, If you need some financial comfort, know that godliness with contentment is great gain, and that without a credit card, you immediately rid yourself of a source of credit card debt within your life, get the scissors out cut up all your credit cards and you put your self in a place where the debt generated by the credit cards cannot get any bigger. Freed from debt you are now free to earn money from the Internet.

You can start to address the debt outstanding, by changing the way you make purchases. Pay for all purchases with Cash or by Debit Card. This will give you a much greater appreciation of what you are spending, this takes a bit of getting used to, but the first thing you will feel is empowered, this will make you feel good about yourself, and will also give you a sense of control over where the money is being spent and what for.

To get an even tighter grip on the debt situation you will need to make a budget, fill out a budget planner, and begin to forecast future spending, but more importantly look to find areas where you can begin to save money. Once you are saving money, this frees you up to spend time earning money on the Internet. I told you this was not a get rich quick scheme, but do not bail out, all you need is an attitude adjustment, a new mindset, and I can help you with that.