How to Cancel A Trip or Vacation

No matter how thoroughly you plan your trip, last-minute changes to your personal schedule can still happen. If you need to alter or cancel your travel plans it can be a serious headache—and a lot of lost money might be next. Still, in many cases, cancelling a trip is unavoidable. A sudden family emergency may come up, your work may need you for a huge assignment, or you or your travel companion might unexpectedly fall ill. Life happens — coronavirus pandemics happen. While some cancellation fees are unavoidable, there are a few simple things to keep in mind when these things happen. 

If you need to cancel an upcoming trip, don’t panic. There are steps you can take to mitigate your losses, reduce your money stress, or even secure a rescheduled vacation. Check out these tips that can help you avoid paying full cancellation fees the next time you need to cancel a trip.

  • Know the policies
    • Cancelling a Hotel or Rental
    • Cancelling a Flight
    • Cancelling a Rental Car
    • Cancelling a Tour or Excursion
  • Cancellation Tips: Boosting Your Chances of a Refund
    • Cancel as Early as Possible
    • Just Ask, You Never Know
    • Call, Don’t Email
    • Seek Alternatives to Money
    • Keep that Code
  • Booking Travel Insurance

Know the Policies

First things first: when booking big ticket items for travel, it’s important to make sure you read the fine print. Ideally, you should make sure you know the ins and outs of the airline, hotel, or travel agency’s policies before you enter any credit card info. This includes their cancellation policy. 

Cancelling a Hotel or Rental

For hotels, I usually book with Hotels.com or a similar service—that’s because their cancellation policy often includes general refunds at most hotels if you cancel before a certain date, and sometimes a voucher for a future stay for cases where refunds might not be available. 

If you’ve rented a vacation home from a site like Airbnb, always check the trip cancellation policy listed on the rental profile. While the service might have its own general cancellation policies, individual property managers likely have their own set of requirements and deadlines for cancellation too. 

I also usually go a step further and always make a note on my calendar on the last day it is free to cancel.

Cancelling a Flight

For flights, you should know that federal law states you have 24 hours to cancel your trip from the time you book your flight if you book it at least seven days before the departure date without having to pay a fee—you can check Transportation.gov for further details. Bear in mind that this only applies to flights booked through the carrier itself, not flights booked through third-party websites. Some airlines, like Southwest, have much more generous cancellation policies than others. Though, in many cases, you’ll at least be able to put the money you spent on your flight toward a trip in the future. This varies significantly from airline to airline, so checking trip cancellation policies ahead of time is a must whenever you book a flight.

Cancelling a Rental Car

If you have booked a prepaid rental car at your destination, you should be able to find their cancellation policy on their company website. Most—like Avis and Hertz, two common rental car companies—will charge a fee for cancellations more than 24 hours after you’ve made the booking, and might charge even greater fees if you cancel your tip within 24 hours of the day you’re scheduled to pick up the car.

Cancelling a Tour or Excursion

Tours and excursions that you’ve booked in advance can also be cancelled, but whether you get a full, partial, or no refund will largely depend on the company you’ve booked through. It’s a good idea to pick up the phone and call the agency to see whether there is any flexibility in their trip cancellation policy.

Cancellation tips: boosting your chances of a refund

Cancellation policies imposed by large companies can sometimes be set in stone—but sometimes they might not be. Especially for smaller companies and hospitality services, there might be a bit of wiggle room you can take advantage of if you need your vacation cancelled. Here’s what I usually do to increase my odds of a refund when I need to cancel a trip. 

Cancel As Early As Possible

Just like most industries, time is money in hospitality—so if you do suddenly find out that your trip must be cancelled, don’t put it off. The minute you know you can’t go, start making calls to cancel all your plans. Begin with the big-ticket items, like flights and hotel reservations, and work your way down to smaller things like tours and restaurant reservations.

Often, travel services are hesitant to offer refunds because they might not have time to sell your spot to a new customer. That makes it important to start early because if the hotel, resort, or cruise line has time to resell your tickets, you have a higher chance of receiving a refund.

Just Ask, You Never Know

Even if you think a reservation is hopeless, it doesn’t hurt to ask. Once, I had to cancel a trip due to a vaccination error (that was completely my fault). I had to cancel my entire trip and found out the night before! Instead of giving up, I called and explained the situation. 

The hotel gave me a full refund because they received tons of walk in service and, since it was high season, they knew they would find a new customer for the room immediately. That was a pleasant surprise that I didn’t see coming! Not bad for cancelling a vacation last minute. Ultimately, you don’t know what kind of customer service and travel deals are available unless you actively seek them out.

Call, Don’t Email

Notice I said start making calls, not sending emails. Talking to a person, and especially the right person, can make a huge difference in getting a partial or even full refund. Often, it helps to speak to someone in management, as high up as possible. Remember, a manager is much more likely to waive a cancellation fee or refund your money than an hourly employee. 

When you first call it’s likely someone at the front desk will answer the phone. You can then ask to speak to managers and slowly move your way up the chain of command—just be sure that you’re polite. It’s not the front desk employee’s fault that they have to enforce whatever vacation cancellation policy the hotel or airline has in place. 

Seek Alternatives to Money

If a vendor can’t refund your cash, your next inquiry should be about any sort of alternatives they can offer other than money. This is often something like a voucher for future service, or some portion of your money put toward a later booking. On the trip I mentioned before, where I had to cancel because of missing vaccinations, I had tons of tours booked. Although I wasn’t able to get a refund for them, they did promise to reschedule all the tours when I did get a chance to take my trip. 

If you do get any offer for future service, be sure to have them send it to you in writing. I kept the emails from the tour companies, and when I finally did go a couple of months later, I conveniently rebooked all the tours!

Keep That Code

If you manage to score any sort of refund or voucher for a future booking, write down any confirmation code they send you and keep it somewhere safe. It’s also a good idea to keep an eye on your bank accounts or credit card statement and make sure that the money has been refunded after a couple of days. If it’s not, you’ll have their confirmation email and code in writing so you can call and inquire after your refund. It’s also wise to look into using a travel card, which might be able to offer you some protection against difficult refund situations.

Booking Travel Insurance

One of the best ways to avoid the hassle of travel cancellations is to purchase a travel insurance policy. Travel insurance is generally fairly inexpensive—around 5% to 10% of the total cost of your trip, depending on a few details like your age, the kind of trip you’re taking, and how many people you plan on adding to the policy.

Travel insurance can also be helpful to have even if you do end up going on the trip, but something goes wrong, like an airline losing your luggage, or getting injured while abroad and needing emergency medical insurance. The expense might seem like a hassle on top of all your other bookings, but the more you stand to lose from a sudden cancellation, the smarter it usually is to invest in protection for your plans. And even budget-friendly vacations might benefit from being insured. After all, you never know what might happen.

When traveling, you want to make every dollar count. Make sure you know your travel companies policies, you’re diligent about calling and speaking with managers, and you insure trips if you can. With the right planning and foresight, even an unexpected trip cancellation doesn’t have to be a disaster. 

The post How to Cancel A Trip or Vacation appeared first on MintLife Blog.

Source: mint.intuit.com

How I Paid Off $40,000 In Student Loans in 7 Months

Want to learn how to pay off student loans? With my student loan repayment plan, I was able to pay off $40,000 in student loan debt in 7 months!Want to learn how to pay off student loans? With my student loan repayment plan, I was able to pay off $40,000 in student loan debt in 7 months! One of the best ways to save money is to finally get rid of those pesky loans that are hurting your financial situation.

Learning how to pay off student loans can lead to many positives, such as:

  • You may finally feel less financial stress.
  • You may be able to use that money towards something more important, such as saving for retirement.
  • Getting rid of your student loans may allow you to pursue other goals in life, such as traveling more or looking for a better job.

I know these things are true because learning how to pay off my student loans is one of the best decisions that I’ve ever made.

No, it wasn’t easy to pay off my student loans that quickly, but it was definitely worth it. No longer having those monthly payments hanging over my head is a HUGE relief, and it allowed me to eventually leave my day job and travel full-time.

Related posts on how to pay off student loans:

  • 6 Ways I Saved Money On College Costs
  • How Blogging Paid Off My Student Loans
  • The Benefits Of Paying Off Student Loan Debt Early
  • 30+ Ways To Save Money Each Month
  • 12 Work From Home Jobs That Can Earn You $1,000+ Each Month
  • How Do Student Loans Work?

How to pay off student loans and create a great student loan repayment plan:

 

Total how much student loan debt you have.

The very first thing that I recommend you do if you want to learn how to pay off student loans is to add up the total amount of student loans that you have.

When you total your student loans, do not just estimate how much student loan debt you have.

You should actually pull up each student loan and tally everything, down to the penny. By doing so, you will have a much more realistic view of exactly how much you’re dealing with.

Plus, the average person has no idea how much student loan debt they have! Usually, they have far more than they originally thought.

 

Understand your student loans better.

There are many people who simply do not understand their student loans. There are many things to research so that you can create the best student loan repayment plan, and this will also help you understand your loans and interest rates.

You should understand:

  • Your interest rate. Some student loans have fixed interest rates, whereas others might have variable rates. You’ll want to figure out what the interest rate on your loans are because that may impact the student loan repayment plan you decide on. For example, you might choose to pay off your student loans that have the highest interest rates first so that you can pay less money over time.
  • What a monthly payment means. Many people believe that a monthly payment is all that you have to pay, are allowed to pay, or that by paying just the minimum monthly payment you won’t owe any interest. These three things are so incorrect! Even if you pay the minimum monthly payment, you will most likely still owe interest charges (unless your interest rate is 0% – but that is very unlikely with student loans).
  • Student loan reimbursements. Some employers will give you money to put towards your student loans, but you should always do your research when it comes to this area. Some employers require that you work for them for a certain amount of time, you have great grades, good attendance, and they might have other requirements as well. There are many employers out there who will pay your student loans back (fully or partially), so definitely look into this option.
  • Auto-payment plans. For most student loans, you can probably auto-pay them and receive a discount. Always look into this as you may be able to lower your interest rate by 0.25% on each of your student loans.

I recommend that you check out Personal Capital (a free service) if you are interested in gaining control of your financial situation. Personal Capital allows you to aggregate your financial accounts so that you can easily see your financial situation, your cash flow, detailed graphs, and more. You can also connect accounts, such as your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more. Plus, it’s FREE.

 

Determine if refinancing your student loans is right for you.

Student loan refinancing is when you apply for a new loan that is then used to pay off your other student loans. This may be a good option if your credit history or credit score is better than when you originally took out your student loans.

By refinancing your student loans, you may qualify for better repayment terms, a lower interest rate, and more. This is great because it may help you pay off your student loans quicker.

The positives of refinancing student loans include:

  • One monthly payment to simplify your finances.
  • Lower monthly payments.
  • Lower interest rates, and more.

Some companies, like Credible, allow you to refinance your federal student loans as well as your private student loans into one. On average, refinancing can save you thousands of dollars on your loan, which is amazing!

However, before refinancing a federal student loan, you will want to think about different federal benefits that you may be giving up. You may give up income-based repayment plans and loan forgiveness for those who have certain public service jobs (such as jobs at public schools, the military, Peace Corps, and more). By refinancing federal student loans, you are giving up any future option to these.

Read further at: Consolidating And Refinancing Student Loans – What You Should Know.

Related tip on how to pay off student loans: I highly recommend Credible for student loan refinancing. They are the top student loan refinancing company and have great customer service! You can significantly lower the interest rate on your student loans which may help you shave thousands off your student loan bill over time. Through Credible, you may be able to refinance your student loans at a rate as low as 2.14%! Plus, it’s free to apply and Credible is giving Making Sense of Cents readers a $100 bonus when they refinance.

 

Reduce your interest rate for your student loan repayment plan.

As I stated earlier, if you automatically pay your student loans each month or consolidate them, then sometimes you can get an interest rate reduction.

With Sallie Mae, I believe the reduction is 0.25%.

That may not seem significant, but it is something! Remember, every little bit counts when it comes to having a good student loan repayment plan.

 

Create the best budget.

If you don’t have one already, then you should create a budget immediately. This will help you learn how to pay off student loans as you’ll learn how to manage your money better.

Budgets are great, because they keep you mindful of your income and expenses. With a budget, you will know exactly how much you can spend in a category each month, how much you have to work with, what spending areas need to be evaluated, among other things.

Learn more at How To Create a Budget That Works.

 

Look for more ways to earn money.

Making extra money can allow you to pay off your students loans quickly because there is no limit to how much money you can make.

Finding ways to make extra money is how I was able to pay off my student loans so quickly!

And trust me, you probably do have time in your day to make extra money.

Just think about it: The average person watches 35 hours of TV a week and spends around 15 hours a week on social media. If you could use that time better and make more money with those extra hours, you’ll be able to pay off your student loans in no time!

Here are some ways to make more money so that you can learn how to pay off student loans:

  • Start a blog. Blogging is how I make a living and just a few years ago I never thought it would be possible. I earn around $100,000 a month through blogging. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $2.95 per month, plus you get a free domain if you sign-up through my tutorial.
  • Start a business. There are many business ideas that you could start in order to make extra money.
  • Sell your stuff. There are many things you can do to make money by selling items. We all have extra things laying around that can be sold, or you can even search for items that can be bought and resold for a profit.
  • Rent an extra room in your home. If you have extra space in your house, then you may want to rent it out. Read A Complete Guide To Renting A Room For Extra Money.
  • Answer surveys. Survey companies I recommend include Swagbucks, Survey Junkie, Pinecone Research, Opinion Outpost, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
  • Become an Uber or Lyft driver. Driving others around in your spare time can be a great money maker. Read more about this in my post – How To Become An Uber Or Lyft Driver. Click here to join Uber and start making money ASAP.
  • Find a part-time job. There are many part-time jobs that you may be able to find. You can find a job on sites such as Snagajob, Craigslist (yes, I’ve found a legitimate job through there before), Monster, and so on.

Related articles that will help you learn how to pay off student loans:

  • 75+ Ways To Make Extra Money
  • 8 Things To Sell To Make Money
  • 10 Ways To Make Money Online From The Comfort of Your Home
  • 10 Things I’ve Done To Make Extra Money
  • Ways To Make An Extra $1,000 A Month

 

How to pay off your student loans – Find ways to reduce your expenses.

The next step is to cut your budget so that you can have a faster student loan repayment plan. Even though you may have a budget, you should go through it line by line and see what you really do not need to be spending money on.

There’s probably something that you’re wasting your money on.

Until you write it down in your budget, you may not realize how much money you are wasting on things you don’t need. And, remember, it’s never too late to start trimming your budget and to put your money towards important things like paying off student loans!

Even if all you can cut is $100 each month, that is better than nothing. That’s $1,200 a year right there!

Some expenses you may be able to cut include:

  • Lower your cell phone bill. Instead of paying the $150 or more that you currently spend on your cell phone bill, there are companies out there like Republic Wireless that offer cell phone service starting at $15. YES, I SAID $15! If you use my Republic Wireless affiliate link, you can change your life and start saving thousands of dollars a year on your cell phone service. If you are interested in hearing more, I created a full review on Republic Wireless. I’ve been using them for over a year and they are great.
  • ATM fees. You don’t need to pay ATM fees, but for some reason so many people do!
  • Sign up for a website like Ebates where you can earn CASH BACK for spending how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free $10 cash back!
  • Pay bills on time. This way you can avoid late fees.
  • Shop around for insurance. This includes health insurance, car insurance, life insurance, home insurance, and so on. Insurance pricing can vary significantly from one company to the next. The last time we were shopping for car insurance, we found that our old company wanted something like $205 to insure one car for one month, whereas the company we have now charges $50 a month for the same exact coverage. INSANE!
  • Save money on food. I recently joined $5 Meal Plan in order to help me eat at home more and cut my food spending. It’s only $5 a month (the first four weeks are free) and they send meal plans straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 or less per person. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
  • Fuel savings. Combine your car trips, drive more efficiently, get a fuel efficient car, etc.
  • Trade in your car for a cheaper one. For us, we are car people. Cars are one of our splurges. However, if you only have a nice car to keep up with the Joneses, then you might want to get rid of it and get something that makes more sense.
  • Live in a cheaper home. I’m not saying that you need to live in a box, but if you live in a McMansion, then you may want to think about a smaller home. This way you can save money on utility bills and your mortgage payment.
  • Learn to have more frugal fun. We don’t spend anywhere near the same amount of money on entertainment as we used to. There are plenty of ways to have frugal fun.
  • Look for coupon codes. I search for coupon codes for everything. Today, I have two for you. I have a $20 Airbnb coupon code and a free taxi ride with Uber. Both are great services that I have personally used.

 

See if your employer will reimburse your student loan debt.

Some companies will pay your student loans quickly if you work for them. I even know of someone who receives a $2 bonus for each hour that she works to put towards her student loans.

$2 may not seem like a lot, but if you work full-time, then that’s over $300 a month. $300 a month for student loans is a good amount! And, because it’s free money, it can all be put towards paying off your student loans quickly.

 

Create a plan to pay off your student loans.

After you have completed the steps above, you’ll want to put it all together and create a plan.

Without a plan, you would just be all over the place, making it difficult to reach your goal of learning how to pay off student loans.

You should create a plan that details the steps you need in order to pay off your student loans, what will happen as you reach each step, when and how you will track your progress, and more.

Being detailed with your plan will help you reach your goal and become successful.

 

Stay motivated with your student loan repayment plan.

Finding motivation can be a hard task for anyone. Motivation is important because it can help you keep your eye on the goal even when you want to quit. Motivation will help you continue to work hard towards your goal, even when it seems impossible. Motivation is what keeps you going so that you do not quit.

Yes, student loan repayment can seem very stressful when you think about it. Many people owe thousands and thousands in student loans.

And, no matter how young or old you are, learning how to pay off student loans can seem difficult or even near impossible. However, think about your goal and how good life will be once all of your student loan debt is gone.

Please try to not let your student loans get you down. Think positively and attack that debt so that you can pay off your student loans fast!

Trust me, once you finally pay off those pesky student loans, you’ll be happier than ever!

Related post on how to pay off student loans: 8 Ways To Get Motivated And Reach Your Goals

 

Pay more than the minimum if you want to learn how to pay off student loans!

The point of what I’ve written above is to help you pay off your student loans. However, you can always go a little bit further and pay off your student loans more quickly.

The key to speeding up your student loan repayment process is that you will need to pay more than the minimum each month.

It may sound hard, but it really doesn’t have to be. Whatever extra you can afford, you should think about putting it towards your student loans. You may be able to shave years off your student loans!

What other ways can a person learn how to pay off student loans? What’s your student loan repayment plan?

The post How I Paid Off $40,000 In Student Loans in 7 Months appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com

Set Financial Goals for Yourself

Everyone wants to have more money, less debt, and greater financial freedom, but very few will attain it. Simply telling yourself that you’ll earn more cash and clear more debts isn’t enough to realize those goals, but writing those tasks down, setting realistic targets, and steadily working towards them can significantly increase your chances. 

Nothing is guaranteed, but someone with clearly defined financial goals has more chances of attaining financial freedom than someone without.

Types of Personal Financial Goals

Financial goals come in many forms, but they all revolve around money and acquiring as much of it as possible. Some of the most common short and long-term goals include:

Establish a Budget

The first step to fixing your finances is to create a budget. It’s a short-term goal and it’s also one of the simplest, but that doesn’t make it any less important. Many Americans underestimate how much they spend and overestimate how much they earn, making a budget essential for adding a little clarity.

Clear Credit Card Debt

Americans have an average of $38,000 worth of debt excluding mortgages. A small percentage of this is allocated to credit card debt, but it often carries the highest interest rate and has the worst terms. Clearing this debt is an honorable and sensible goal for anyone with mounting debts.

Save Money for a Big Purchase

The average American family under the age of 35 has between $2,500 and $4,000 in savings. That’s barely enough to cover a used car, let alone a mortgage down payment or college education, which is what most families are saving towards.

Save for Retirement

This is the ultimate long-term financial goal. Saving for your retirement will give you something to look forward to and make life easier as you enter your old age. Many retired Americans regret not saving more money, with some experts recommending that you have at least $1 million tucked away to cover you for an average of 18 years.

That’s a lot of money, but it comes from a lifetime of saving and means you can enjoy plenty of cruises and vacations when you call time on your career.

Fix your Credit Score

Next to your Social Security Number, your credit score is one of the most important numbers you have and one you need to pay close attention to. Build a good score and a world of opportunities will open for you, making it easier to get low-interest loans and secure high credit limits.

Create an Emergency Fund

You can never underestimate the benefits of an emergency fund. It’s essentially a savings account without an end goal and it’s used to cover you in the event that you’re hit with an unexpected bill or expense. It will also help if you lose your job or become ill.

Improve your Financial Situation

This incorporates many of the goals discussed above, one can be both a short-term financial goal and a long-term one. The most common goal is simply to have more money for an easier life or an early retirement, but there are also those who save so they can move abroad, start a dream business or simply become a millionaire.

These goals are a little harder to achieve than simply clearing debt or have some extra money in your pocket, but they’re not unreasonable. If you have a detailed plan and work hard to realize it, there’s no reason why those lofty long-term financial goals can’t be realized.

Why Should You Set Personal Financial Goals?

Goals give you direction and purpose. They provide a detailed outline of what you need to do, what you have achieved thus far, and what remains. This adds a sense of accountability that simply wouldn’t exist without those goals.

If you simply tell yourself that you’re going to do something, you’re more prone to procrastinating and moving the goalposts whenever it suits you. If you write all your goals down and separate them into clear and manageable chunks, there’s no room for denial or deviation.

Think of it as a visit to the grocery store. If you have a list, you buy what you need, don’t forget anything, and are more inclined to focus on the purchases that are within budget and will actually be eaten and enjoyed. If you visit without a list, you’ll end up with a bunch of unnecessary foods you bought just because they were on offer and will forget all the things you went there to buy.

Our minds need direction, purpose. When the road is long, it’s easier to traverse if there are milestones, checkpoints, and clearly defined borders; without all that, it’s just a chaotic mess and you’ll never make it to the end.

Short vs Long-Term Goals

A short-term goal spans days, weeks or months; a long-term goal stretches things out over several years and even a decade. It’s important to have both, but short-term goals should have priority as long-term ones can get lost and forgotten about.

As an example, let’s suppose that your goal is to save a lot of money for your retirement. A long-term goal would be as simple as:

  • Save $500,000 before retirement

This doesn’t really help. However, if you break it down into multiple short-term goals you can focus on each of these in turn, ticking them off as you go and motivating you to keep going. As an example:

Increase Debt-to-Income Ratio

  • Cancel unused subscriptions
  • Sell unwanted items
  • Ask for a pay rise
  • Get a part-time job

Repay Debts

  • Clear credit card 1
  • Clear credit card 2
  • Repay student loans
  • Repay personal loan

Save Money

  • Open a savings account
  • Save $500 a month
  • Make a sound investment

You can break these debts down even further and focus on making extra cash every single day. If that’s what gets you up in the morning and pushes you towards your long-term goal, that’s what you need to do.

How to Track Your Progress

As the saying goes, there is an app for everything and where financial goals are concerned there are actually multiple tools and apps to help you out:

  1. Mint: Track activity in real-time after connecting bank accounts and credit cards. Monitor spending, create budgets, and learn how to manage your money. Mint is one of the highest-rated budgeting and financial management apps on the market and is well-deserving of the praise it has received over the years.

  2. Wally: A great little budgeting tool that can keep track of your savings goals and tell you when certain bills are due. It’s free and if your goal is to save and cover your debts, it does everything you need.

  3. Every Dollar: A simple but useful app designed to help you escape debt and manage your finances more effectively. It literally lets you see where “every dollar” is being spent.

  4. Clarity Money: A useful app to help you manage your subscriptions. The average consumer has dozens of subscriptions and it’s easy to lose track, but Clarity Money keeps everything in one place.

  5. Spendee: Manage family finances with this shared budgeting app. It’s ideal if you’re saving along with a partner or want to keep track of what everyone in your household is spending.

How to Meet Your Financial Goals

Whatever’s on your to-do list, just set a goal and start working towards it. Take a look at these tips to help you:

Debt Elimination 

Debt is crippling and the less you repay, the more damaging it becomes. Credit card debt, student loans, medical debt; it creeps into your life, it grows, and it never seems to go away. Before you focus on your savings and build towards a brighter future, you need to focus on clearing those debts.

Debt relief methods can help you with this, including consolidation, debt management, and debt settlement. In the first instance, however, you should try debt payoff strategies like Debt Snowball and Debt Avalanche, both of which rely on you generating extra money to meet more than your minimum.

Every time you meet the minimum payment on your debt, you’re paying a lot of interest and a little principal. The interest compounds, the debt grows, and if you keep sticking with just the minimum payments it will take forever to repay. When you repay more than the minimum, however, you’ll clear more of the principal, reducing the compounding interest, amount, and term.

Emergency Fund 

It doesn’t matter how substantial your net worth is, how much money you have in the bank and what sort of long-term financial goals you have, it always helps to have an emergency fund.

An emergency fund is a sum of money put aside for a rainy day. Unlike a savings account, which might be used for retirement, a vacation or college tuition, an emergency fund has no predetermined purpose and is designed just to sit, grow, and wait for a rainy day.

An emergency fund can help you if you lose your job or have a medical crisis. We live in times of uncertainty and exist under one of the costliest healthcare systems in the world. A short stay in a hospital can bankrupt you if you’re not insured and even if you are, there are still costs to consider.

Budget to save and invest but keep some money aside to build an emergency fund and make sure you’re prepared.

Savings Goals

Successful savings goals are built on careful planning and sacrifices. If you want a new home, you need to say no to luxury purchases, eating out, vacations, and other expenditures. 

The average American family wastes about $1,500 a year on uneaten groceries, $3,000 on restaurants and takeout, up to $500 on gambling, and thousands more on vacations, smoking, unused subscriptions, and more.

You don’t need to eliminate these expenditures entirely, just look for cheaper and more sustainable alternatives. Save on wasted groceries and dining out by going for a picnic; swap an expensive vacation abroad for a family fun staycation. 

Once you eliminate these expenses, you can start saving towards whatever goal you have, be it a retirement fund, a car or the down payment on a house.

Achieving a Huge Net Worth

It’s okay to scoff at this one as it does seem a little far-fetched. However, it’s a dream that countless Americans have and one that is very attainable. Of course, it’s easier if you have a talent or you’re young enough to develop one, but providing you have a good work ethic, don’t spend your days procrastinating, and have the right mindset, you can build a sizeable net worth. 

It’s about making smart financial decisions, acquiring lots of knowledge, adopting careful investment strategies, and working endlessly. Here are some tips to help you accomplish this lofty goal:

Don’t Spend Frivolously

The world of the rich and famous is awash with stories of people who adopt unbelievably frugal lifestyles despite having millions or billions in the bank. There are stories of Warren Buffet going to great lengths to use coupons to buy fast food, even though he’s one of the richest men in the world.

This kind of frugality is a little extreme, but it comes from the right place. Rappers, rock stars and sports stars like to throw money around when they have it, but they’re the ones declaring bankruptcy and being arrested for tax debts when their careers enter a slump. That’s not a sustainable lifestyle for anyone, even the super-rich.

Learn how to manage money properly and accumulate as much as you can. Don’t scoff at the end of saving a few dollars just because you have a few hundred; don’t throw away a few hundred just because you have a few thousand. 

Adopting this frugality will hasten your journey to becoming a millionaire. It will also allow you to manage your money effectively when you eventually make it, preventing you from being one of many sob stories of people who came into lots of money and then blew it.

Treat Life Like a Business

To become rich and successful in a way that doesn’t rely on good fortune, you need to treat your life like a business. A business, for instance, is very wary of accumulating expenses and will instead try to invest additional cash into assets. These assets increase the value of the business, whereas expenses reduce it.

As an example, let’s assume that you’re 18 and have a talent for writing. A good investment would be an education in literature or creative writing, a laptop, a writing course, even a home office. An expense, however, would be a holiday, a flashy watch or lots of designer clothes. None of these things will grow your wealth and most will hinder it.

Take a look at our guide on good debt vs bad debt to learn more.

Read, Learn, Fail

Read as many books as you can on your chosen subject and on similar subjects. You’ll learn about the world, the English language, and more. All these will help to improve your reasoning, logic, and knowledge, which will help with your goals.

Learn New Skills

Knowledge doesn’t just come from books and it shouldn’t be limited to specific subjects. If you want to be rich and successful, you need to devote every minute of your spare time to working, learning, and acquiring new skills. 

Learn a language, adopt a craft, research into a niche subject—all these things can broaden your horizons and increase your earning potential.

Find a Specialty and Stick with It

While it’s good to read many different subjects and learn many different things, when it comes to actually making money, you need to stick with a single subject. The world is filled with wannabee millionaires who spend their days writing music, books, and screenplays, and their nights trying to juggle freelance careers and businesses.

Specialize in one thing, be the best you can be, and once you have the money and the success you can start venturing into other areas.

Stop Making Excuses

Generally, people who dream of becoming rich and successful will fall into one of two categories. In the first, there are those who spend their days dreaming, partying, and procrastinating. They assume that being rich is simply a case of having a great idea and then waiting for the riches to descend. In the other group, you’ll find people who work every minute of the day and are always willing to take risks and make sacrifices.

If you want to accomplish great things, you need to work for it. Don’t assume that all the rich and successful people you see on social media have it easy. If they’re not working every minute of every day, there’s a good chance they worked that much to get where they are.

Set Financial Goals for Yourself is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

The Worst Ways to Deal With a Bill Collector

The Worst Ways to Deal With a Bill Collector

Dealing with a bill collector is never fun and it can be particularly stressful when you’re sitting on a mountain of debt. Sometimes debt collectors fail to follow the rules outlined in the Fair Debt Collection Practices Act. If that’s the issue you’re facing, it might be a good idea to file a complaint. But if you’re personally making any of these mistakes, your debt problem could go from bad to worse.

Check out our credit card calculator.

1. Ignoring Debt Collectors

Screening calls and avoiding bill collectors won’t help you get your debt under control. Debts generally have a statute of limitations that varies depending on the state you live in. Once it expires, the collector might not be able to sue you anymore. But you could still be responsible for paying back what you owe in addition to any interest that has accumulated.

In addition to the potential legal consequences of unpaid bills, letting old debt pile up can destroy your credit score. Unpaid debts can remain on a credit report for as many as seven years. So if your debt collector is getting on your last nerves, it might be best to stop hiding and face him head on.

2. Saying Too Much Over the Phone

The Worst Ways to Deal With a Bill Collector

If you decide to stop dodging your bill collectors, it’s important to avoid sharing certain details over the phone. You never want to say that you’ll pay a specific amount of money by a deadline or give someone access to your bank accounts. Anything you say can be used against you and agreeing to make a payment can actually extend a statute of limitations that has already run out.

A debt collector’s No. 1 goal is to collect their missing funds. They can’t curse at you or make empty threats, but they can say other things to try and scare you into paying up. Staying calm, keeping the call short and keeping your comments to a minimum are the best ways to deal with persistent bill collectors.

Related Article: Dealing With Debt Collectors? Know Your Rights

3. Failing to Verify That the Debt Is Yours

When you’re talking to a bill collector, it’s also wise to avoid accepting their claims without making sure they’re legitimate. Debt collection scams are common. So before you send over a single dime, you’ll need to confirm that the debt belongs to you and not someone else.

Reviewing your credit report is a great place to start. If you haven’t received any written documentation from the collection agency, it’s a good idea to request that they mail you a letter stating that you owe them a specific amount of money.

If you need to dispute an error you found on your credit report, you have 30 days from the date that you received formal documentation from the collection agency to notify them (in writing) that a mistake was made. You’ll also need to reach out to each of the credit reporting agencies to get the error removed. They’ll expect you to mail them paperwork as proof of your claim.

4. Failing to Negotiate the Payments

The Worst Ways to Deal With a Bill Collector

No matter how big your debts, there’s usually room for negotiation when it comes to making payments. If the payment plan your bill collector offers doesn’t work for you, it’s okay to throw out a number you’re more comfortable with.

Sometimes, it’s possible to get away with paying less than what you owe. Instead of agreeing to pay back everything, you can suggest that you’re willing to pay back a percentage of the debt and see what happens. A non-profit credit counselor can help you come up with a debt management plan if you need assistance. Whatever you agree to, keep in mind that the deal needs to be put in writing.

Related Article: All About the Statute of Limitations on Debt

5. Failing to Keep Proper Documentation

Whenever you communicate with a bill collector, it’s a good idea to take notes. Jotting down details about when you spoke with a collector and what you discussed can help you if you’re forced to appear in court or report a collector who has broken the law. Collecting written notices from bill collectors and saving them in a folder can also help your case.

Bottom Line

Dealing with bill collectors can be a real pain. By knowing how to interact with them, you’ll be in the best position to get rid of your unpaid loans and credit card debt (that is, if you actually owe anything) on your own terms.

Photo credit: ©iStock.com/Steve Debenport, ©iStock.com/RapidEye, ©iStock.com/JJRD

The post The Worst Ways to Deal With a Bill Collector appeared first on SmartAsset Blog.

Source: smartasset.com