SavvySugar

Back to Basics: Achieve Your Goals With These Calculators

SavvySugar — Sun, 22 Nov 2009 06:00:00 -0800

Sure, we'd all love to snap our fingers and achieve our financial goals. But successfully paying down credit card debt and saving money can only happen if you go in with a plan, and a realistic one at that.

Want to be debt free? Use my credit card payment calculator to determine how long it will take while paying a certain amount each month. If saving money is at the top of your list, whether it's for something fun or to build up your rainy day fund, use my savings calculator to figure out how long it will take to reach your goal.

How-To: Prepare For the Worst Monthly

SavvySugar — Sun, 08 Nov 2009 09:00:04 -0800

No one likes a Debbie Downer, but these are trying times and you need a financial backup plan. Whether you feel a strong sense of job security or have a million bucks in the bank, it's crucial that you embrace the motto of the Boy Scouts ("Be Prepared!") so you don't end up in a serious financial and personal conundrum should you draw a short stick. The calendar changes so quickly it's easy to forget your egg's nest and backup scheme amid the momentum, but follow these basic steps and suggestions to keep yourself on track.

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Reader Tip: Pick Up a Copy of How to Get Out of Debt

SavvySugar — Tue, 03 Nov 2009 12:00:58 -0800

We each develop a unique saving style over the years, which is why we started the How Do You Save? group for you to divulge your winning tactics. It offers a place for you to dole out your advice to other SavvySugar readers trying to save a little moola and learn from their experiences. PureGrace recommends picking up a copy of How to Get Out of Debt, Stay Out of Debt & Live Prosperously. She says:

The book has been a life changer for me and my finances!!! When I read this book over a year ago I had $16,000 in total debt, a loan with an APR of 16.99 percent and a feeling like I was living in austerity. Since then I have stopped using credit cards completely, paid off $6,000 in debt including paying off my student loan and a store credit card. It recommends simple techniques that have made a huge difference. You write down everything you spend and then put it into categories. Create a spending plan based on the expenses you write down but also set up long term goals. I created a savings account for vacation, clothing, pampering, Christmas, taxes, etc. The most important thing I learned from this book was to pay myself first. My old spending plan had me trying to paying off a bunch of bills and then trying to live off the rest. Now I have flipped that and feel like I'm really enjoying my life and still making progress towards being completely debt free.

Do you have a tip for readers or a book that's changed your outlook on career and finance troubles? Join our How Do You Save? group and share your helpful suggestions. Here's a detailed guide to posting questions or posts to groups if you are new to the PopSugar Community.

Ask Savvy: Should I Reopen My Card After Being Deep in Debt?

SavvySugar — Wed, 21 Oct 2009 12:00:36 -0700

Dear Savvy,

I've just paid off one of my credit cards that was in the Debt Management Program through a credit counseling service, which is something I'm proud of! It's nice to have accomplished that! The only issue is, I got a letter from that company offering to reopen the credit card line since I paid everything off. I'm not 100 percent sure if it'd be a wise thing to do or not, since using credit cards got me into the DMP in the first place!

The upside would be that I'd have more available credit line, which could be a good thing for my credit rating. Since I've already learned my lesson the first time around, I know what not to do this time around, which was to charge without making sure I could pay it off pretty much immediately. The credit limit would be a lot lower than what it was originally, so I wouldn't be able to charge a lot, and it is a store credit card so it'd only work only for that store, and not anywhere else.

The cons would be . . . well, my credit card usage is kind of what got me in my debt situation in the first place, and I'm not so sure if I should be opening up cards so soon. The offer is only for 30 days, as well, so after 30 days, I don't know if I'd qualify for a new credit card due to my history. Should I go ahead and accept the offer to reopen the account and "start" over and be more wise, or should I just let it go?

To see my advice, read more.
Savvy says: Congrats on paying off your credit card! It's great that you made the effort and stuck with it - and that you feel like you've learned the important lesson of spending within your means. Even though you've made great strides in managing your money, I don't think it's in your best interest to reopen the card that triggered your financial troubles.

You say that opening the card will boost the amount of available credit and therefore help your credit score, which tells me that you are the owner of at least one other credit card. Instead of trying to manipulate your score, improve your number by working on paying off other debts and keeping all accounts in good standing by paying on time. Focusing on these habits will help you much more in the long run and keep you from reentering an out-of-control credit situation.

If you need more convincing, consider that you'd be setting yourself for a potentially damaging situation if you end up maxing out your new card, even if the limit is lower than what you had before. Store credit cards are, in general, not the most desirable pieces of plastic to have in your wallet. Aside from their typically astronomical interest rate, they can feed a shopper's rationalization that she's actually saving money by shopping because of whatever points or discounts she gets through using the card.

Get this card out of your head and stay on the right track of building a solid credit score. It takes a bit of self-restraint, but you'll be much better off when you need to borrow money for something that doesn't come in a store . . . like a car or house.

Have a question for me? Ask away by posting your questions in my Ask Savvy group.

Back to Basics: Achieve Your Goals With These Calculators

SavvySugar — Mon, 28 Sep 2009 13:15:09 -0700

Guess How Much: Average College Grad's Student Loan Debt

SavvySugar — Wed, 09 Sep 2009 04:30:57 -0700

Recent grads have been having a rough go of the recession-ridden real world. They're competing in a reduced job market and facing increased expenses as student loan repayment rears its head, plus interest. Can you guess how much the average college graduate has to pay back in student loans?

Take the quiz

People in Debt Twice as Likely to Be Overweight?

SavvySugar — Sun, 06 Sep 2009 04:30:10 -0700

There's a solution for every problem, and it appears two of the toughest to fix are heavily linked. New research from Germany shows that people in heavy debt are twice as likely to be overweight as the general population and more than 2.5 times as likely to be obese.

While the statistics are surprisingly high, it makes sense that individuals with intense financial stress would be struggle with weight. Stress causes the body to put on weight, and the researchers note that people may turn to food to cope with their money troubles. However, the team doesn't rule out that heavier people are more likely to get into debt because it's harder to find employment or make as much money as slimmer individuals. I hope there isn't much validity behind this suggestion; have your experiences shown there's any truth to the possibility?

Michael Jackson's Debt Load: Guess How Much?

SavvySugar — Fri, 26 Jun 2009 13:15:02 -0700

We're all saddened by the sudden death of legend Michael Jackson, and as the world mourns, a debate over his estate is already in the works. It's a messy issue and the future discussions are sure to be ugly, which is upsetting given the many musical gifts Jackson left behind. However, despite his mega success, he also died in a mountain of debt. Can you guess how much debt Michael Jackson was trying to dig himself out of when he passed away?

Take the quiz

Your Student Debt Load Could Soon Be Lighter

SavvySugar — Wed, 24 Jun 2009 06:30:22 -0700

Student loan repayment can be burdensome on tight budgets constricted by modest incomes. The government has developed a program that it hopes will put graduates more at ease about the issue. The Income Based Repayment plan will take effect July 1, and the federal program aims to cap monthly payments at an affordable amount based on income, family size and state of residence.

New loans just starting repayment and existing loans that have been in repayment are both eligible for the Income Based Repayment option.
Eligible loans include those used for education including undergraduate, graduate, professional, and job training.

Learn exactly which loans are eligible, just read more.

The program applies to Stafford, Grad PLUS, or consolidation loans made under the Direct Loan or Federal Family Education Loan programs.
The Income Based Repayment option is not available to loans currently in default, parent PLUS loans, or consolidation loans that repaid a parent PLUS loan or private student loans.
Loan forgiveness may be granted for remaining debt after 25 years of payments, and graduates who enter public service jobs may be granted loan forgiveness after 10 years.

Ultimately, your lender will determine eligibility for the Income Based Repayment option, so contact your lender to apply. Understand that while the option makes repayment less stressful, particularly at the beginning of your career, lower monthly payments could extend your repayment period and cost you additional interest. Visit IBR Info for more information.

Guess How Much: Student Loan Debt For New Grads

SavvySugar — Mon, 22 Jun 2009 13:30:35 -0700

Higher education comes with a higher cost, year after year. Student loan debt is particularly problematic for new graduates because it's more difficult for them to find employment after graduation. While some can turn to their parents for help in making loan payments, it's not feasible for many families who have been affected by the recession. Can you guess how much debt the average grad has coming out of college?

Take the quiz