How I Went From $30,000 In Debt, To Debt-Free In 36 Months By Don Glasgow

Three years ago I was $30,000 in debt. I was making $35,000/year. Today (Oct. 2006), I am debt-free. I paid off all of that debt by changing how I looked at debt, by making the hard choices, and by doing “whatever it took” to get out of debt. I don’t work in the financial or lending field. The only reason I have put my thoughts into writing is to try to help other people. I am 46 years old. This is my story.

Three years ago I was $30,000 in debt.

I had $15,000 in consumer debt (credit cards and an auto loan), and I owed $15,000 to my mom. I felt like I was swimming in an ocean of debt with no sign of the shore.

My income as a real estate agent was around $35,000/ year. Scary, huh?

I got myself into this trouble the way most people get themselves into financial trouble…poor decisions based upon taking the easy, instant gratification, tons of justifications path.

Today, I am debt free except for my mortgage, which I consider “good” debt.

I’m going to tell you how I got out of debt. These ideas are a bit difficult to put into writing, but if you read this article carefully, my experiences and suggestions may help you to achieve the debt-free life you dream of.

What has worked for me can work for you if you are willing to follow a more difficult life path than you are on right now. The choices I made, so that I could get out of debt, only worked for me because I was willing to do “whatever it took” to get out of debt. This “whatever it takes” philosophy was very important to my success, and will also be very important to your success.

Selling your “future self” into slavery:

Most people, including me, prefer to take the easy path in life; “Buy now, pay later”. We do this not realizing that we are putting our “future selves” into slavery for the debt we create today. What you buy on credit today, your “future self” will have to try to pay back when you get your credit card statements.

If you think about it, why would you do that to yourself? You wouldn’t do that to a friend. You wouldn’t do that to your Grandma. Why do it to you? You need to learn to like yourself enough not to create this future slavery. You have a choice. You can look forward to a future filled with freedom and prosperity, or a future of slavery to your debt. Don’t intentionally give up your freedom. Your choices can create a future heaven or a future hell for you.

When I realized this important truth, I totally changed how I looked at life. I realized that, “If I am tough on myself today, my future self will have a gentle, more prosperous life, filled with exciting choices”.

With that truth firmly in mind, I started making the harder choices. The delayed gratification choices. The get of debt-slavery choices. I started walking the more challenging path towards getting out of debt.

How I freed myself from debt-slavery:

Easy Choice #1: I stopped creating more debt. Period.

Hard choice #1: I sold my home and bought a tiny condominium. I lived alone and didn’t need a home that big, and I didn’t need that big mortgage payment. I moved from my 1400 sq. ft. home into a 420 sq. ft. condo. My mortgage payments were cut in half. The money I freed up was used to pay off debt.

Hard choice #2: I got a second job. In my case I created a window cleaning business. Window cleaning is inexpensive to start and fairly lucrative…I averaged about $24/hour washing windows. I could set my own hours to fit my real estate business. I still do this business on a part-time basis. This extra income went to paying down my debt, and now that I am out of debt, is now being saved to buy a newer car with cash. By the way, I will be paying cash for that car.

Hard choice #3: While working on paying off my debt, the real estate market went crazy. Real Estate agents, including me, were making two or three times their regular incomes. In our area this boom went on for about 24 months. Most agents were buying themselves new, larger homes and beautiful, new luxury cars. Not me. I was busy paying off my debt. I admit that I would look longingly at the new cars in our office parking lot, but I knew that the good times would in due course end and those easy payments would starting getting hard to make.

Easy choice #2: Towards the end of the “hot” real estate market I had about $30,000 in equity in my little condo. I sold it and moved into a condo that was a little larger (800 sq. ft. vs. 420 sq. ft.) My mortgage payments were larger, but I used part of the profit to pay off my Mom. The rest was used to buy my new condo. Now my debt was down to about $9,000.

The good, the bad and the end of my debt:

I received an inheritance this year, some of which I used to pay off the rest of my debt. This inheritance was given to me by Betty, a woman I was dating. My sweetheart, Betty, died of cancer in December of 2005 and left me some money from her estate. Even though she wanted me to have the money, I would gladly have given it all back and everything I owned to have her back. The ability to pay off my debt using this money was truly bitter-sweet. While she was alive, Betty enjoyed debt-free prosperity and she knew how important it was to me to be debt free too. She left me once last blessing, freedom.

In the end I received an unexpected blessing which helped me get out of debt faster. I feel strongly that had I not been willing to do “whatever it took” to get out of debt, I may have never received that final blessing. I think life provides us with what we want, if we are willing to pay the price. You may not have to pay the full price to become debt-free, but you have to prove you are willing to pay the full price, before the universe helps you out.

It’s up to you. You can become free of your debt by being tough on yourself. Make the harder choices. Take the more difficult path. Don’t sell yourself into debt-slavery. If you do these things, your financial life will become gentler and easier as time passes. This concept works. Try it, I dare you. Then let me know about your success!

Resource: http://www.isnare.com/?aid=100540&ca=Finances

Affordable Student Health Insurance - Why Student Health Insurance Can Be Cheap By Elizabeth Newberry

Student health insurance can be affordable, and even cheap, if you choose a plan that offers the exact coverage your student needs, and if you understand the coverage your student has. By choosing the coverage your student needs, you won’t have to worry about paying for any medical costs that you know your student will acquire. And, by making sure you thoroughly understand your student’s coverage, you won’t be hit with any surprise costs along the way.

The first step to finding affordable student health insurance is to ask about any health coverage offered to your student by his or her school. Many colleges and universities provide medical services via on-campus clinics to students. These medical services may be available free or at a very low cost – and what’s more affordable than that?

Next, ask about pre-existing conditions. For example, your student may be diabetic; medical care for pre-existing conditions such as diabetes may not be offered through the school. If this is the case, consider purchasing a smaller, additional health insurance policy to cover treatment for diabetes while using the school-provided services for situations such as common colds. This will help keep student health insurance affordable.

Finally, find out everything you possibly can about the student health insurance plan and/or the medical services offered by the school. How much is covered if your student visits the emergency room? Is your student allowed to visit any health care professional, or is there a network of doctors from which he or she must choose? You may think you’ve purchased an affordable student health insurance plan, but if emergency room visits aren’t covered – or very little of the cost is covered – you’ll be faced with a bill that won’t make the student health insurance plan seem so affordable after all.

Know which services are available, which services aren’t, as well as how to obtain each and you’ll find affordable student health insurance.

Resource: http://www.isnare.com/?aid=100881&ca=Finances

Credit Card Application: Getting Your First Credit Card By Mario Churchill

Credit cards are one of the most convenient tools that you can ever use today. Besides, you would really need this tool if you want to purchase something but you don't have the cash for it. With a credit card, you can virtually purchase the products or services you need even without carrying cash.

Credit cards are a very useful tool to manage your expenses.

However, before you apply for a credit card, you should first consider a few things in order for your first credit card application to be approved.

The first thing you should consider before applying for a credit card is your credit history. This is the most essential thing that a credit card company will look at when deciding if they should issue you a credit card or not.

If you have a bad credit history, it will be hard for you to apply for a credit card and vice versa. So, before you apply for a credit card, you should make sure that you have a good credit history in order for you to get approved for one easily.

However, if you don't have a credit history, then you need to make a one. You can do this by taking out a small loan or through a hire-purchase agreement. After you make payments, you are now making your first credit history. Make sure you pay it off on time in order to get a good credit history and get approved for your first credit card.

If you don't know whether you have a credit history or not, you can always apply for a copy of your credit history, by doing this, you can know if you have a good credit history or a bad credit history or if you have any credit history at all. You can apply from a credit reference agency in your area for this document.

After discovering that you have a good credit history, the next step would be deciding how much your credit card limit should be. This is usually determined by your income. And, usually your savings is also important.

Depending on your savings and your income, you can then apply for a regular credit card, a gold credit card or a platinum credit card. These types of cards vary in credit limit and also have different benefits that you can have.

Usually the higher the credit limit the higher the fees will be. However, the benefits you can get with a higher credit limit are better than regular credit cards. Two examples would be frequent credit card user money back, and discounts on purchases with credit cards.

The next step in credit card application is submitting your application form. The credit card company you chose will then review the application form, check your financial background and will also check your credit rating. They will also ask you to comply with certain conditions in order for your credit card application be approved; such as asking you to have some money on a deposit account with the company.

Sometimes, your credit card application may be rejected. You have to ask the company why your application was denied. There are usually two reasons why the company rejects an application. The first is that you failed the credit rating test and the second is that you probably filled the credit card application form all wrong.

If you failed the credit rating test, you will need to apply in another credit card company. However, if you just filled the credit card application wrong, you can still reapply with the same company. And, this time, fill up the application form correctly to avoid getting rejected again.

These are the things you should first consider when applying for a credit card. Meeting all the requirements and conditions of the credit card company will ensure you of getting your credit card application approved.

Resource: http://www.isnare.com/?aid=100792&ca=Finances

Advice For Choosing Your Life Insurance Payments By Elizabeth Newberry

Although it’s a responsible choice, the choice to purchase a life insurance policy isn’t required. Other than not wanting to think about inevitable death, many people choose not to purchase a life insurance policy because they don’t want to take on the extra payments for something they will not immediately use. Electric bills, for example, are less painful to pay every month. You use electricity every day. Life insurance policies, on the other hand, are usually only used in case of a financial emergency or the death of the policyholder.

However, most life insurance companies offer the ability to make life insurance policy payments four different ways – monthly, quarterly, semi-annually, and annually – and your life insurance agent will be more than happy to offer advice about each payment option.

Monthly

Sometimes making monthly payments on your life insurance policy is the best choice, simply because you have the money right then. However, if you pay monthly, you may actually end up paying more than you would if you paid quarterly, semi-annually, or annually, because many life insurance companies offer discounts for other payment options.

Quarterly

Quarterly payments are sometimes the most convenient option, because they allow you to save for a few months before sending payment.

Semi-annually

Semi-annual payments aren’t quite as large as annual payments, yet they do offer the ability to save and pay twice a year.

Annually

Making annual payments on your life insurance policy in the form of one lump sum may leave a lump in your throat, but depending on the life insurance company, you may actually save money this way.

Whether you’re considering purchasing a life insurance policy, or already have one, talk with your life insurance agent about life insurance policy payment options. While you may think one payment option is best for you, the advice your life insurance agent gives you may help you see that another payment option is actually better.

Resource: http://www.isnare.com/?aid=100878&ca=Finances

What To Do Before Buying That New Car Or Truck By Jake Rustenhoven

Ahhhh, that new car smell...

It's great isn't it? But it comes at a premium. We all know that it's cheaper to buy used instead of new, but if you still don't think you can live without that fragrance of a new car (the real one, not the one you buy from Wal-Mart in the little spray can) - then at least think about following these steps first:

1. Research! If you absolutely have to have a new car, do yourself a favor and spend some time at Edmunds.com and research some of the cars that you are thinking about buying. If you have a specific car in mind already, be sure to research the other cars in its class as well. You might even find another one you like better and is rated higher from consumers, has higher crash test scores, better resale value, higher mpg's, or whatever else floats your boat.

2. Once you have decided on a car, Edmunds has a great feature for pricing - it's called True Market Value. That is basically how much other people are paying for that specific car. This can give you great leverage when negotiating the price on your new vehicle. But you also must keep in mind that it's not a definite price level, but more of a guide for haggling with the salesman about the price.

3. Dare I say the 'L' word? Loan! There I said it, whew. Once you have settled on a fair price for the vehicle you are buying, it's time to think about how you're going to pay for it. Since most of us don't pay cash for new cars, most likely you'll need to obtain a loan for your new ride. If so, then you need to pay close attention to the interest rate on the loan. This is not something that can normally be negotiated, but you still need to be aware of what your interest rate will be - even 1 percentage point lower can save you over $700 on an average priced new vehicle, over the life of the loan.

My advice on this would be to go after those low APR loan offers that the dealerships sometimes have. You know, the 'buy now and receive 2.9% apr for up to 60 months' type of offers. That can save you some big bucks, lets take a closer look...

How much money can lower interest save?

Ok, lets use an interest rate comparison loan calculator and plug in some numbers, and see what we get.

Example 1 - lets say it's for a Chevy Impala:

Loan amount: $25,000
Regular interest rate: 6.9%
Special low interest rate: 3.9%
Loan length: 5 years
Total savings with lower rate: $2,073.94

That's right, for this example the lower interest rate would save you more than $2k over the 5 year length of the loan. That money would be much better off sitting in an interest bearing bank account, don't you think? Just for kicks, lets do a higher priced vehicle with the same comparison criteria...

Example 2 - Let's say you want a Tahoe instead:

Loan amount: $45,000
Regular interest rate: 6.9%
Special low interest rate: 3.9%
Loan length: 5 years
Total savings with lower rate: $3,733.08

With example 2, you would save almost $4k in interest over the life of the loan. That would be a nice down payment on your next vehicle don't you think?

There are many different things that factor in to what vehicle you actually end up purchasing - comfort, resale value, safety, style etc. Just make sure you add 'research' and 'interest rate' to that list, and stay informed!

Resource: http://www.isnare.com/?aid=100790&ca=Finances

Credit Card Balance Transfer: The Best Offer You Should Look For By Mario Churchill

In today's society, people purchase all their everyday needs by using a credit card. You can pay for everything by using a credit card, such as your groceries, electric bills, and even gas for your car. Just imagine, by just having a credit card, you can purchase anything you want without having to carry cash around.

Basically, what a credit card offers is that you don't have to worry about not having the cash, worry about the credit card bills you have to pay after a month.

It is a fact that credit cards are a very useful tool that you can use today. However, owning a credit card also has its risk. Since people don't have to worry about purchasing things with a credit card, they tend to overdo it. Sometimes people get that urge to buy that new pair of shoes they really want but don't have the money for it. They tend to use their credit cards for it.

Because of this uncontrollable spending, people get into credit card debt. With a high interest rate credit card, this can be bad news. You will likely end up paying more on interest rather than paying the actual debt itself. So, one way to get rid of this debt is through credit card balance transfers.

Credit card transfer is one of the best ways and the easiest way to avoid high interest on your monthly credit card bills. If you have a number of credit cards, you can basically use the other credit cards to pay for your debt.

The first thing you need to do is choose the credit card with a low interest or zero interest rate. This credit card is the best card to transfer your balance to. With a low interest or zero interest rate, you will certainly save a lot of money and is the best way to get rid of the debt.

However, credit card balance transfer also has its drawbacks. Some companies charge a credit card balance transfer fee that can be as high as four percent of the debt. You should also make sure that you pay on time to avoid rise in interest rates. Also, you have to watch out for hidden fees, make sure that the credit card you are transferring your balance to doesn't have hidden fees that you will be required to pay for.

Certain low interest or zero interest credit cards has expiration periods on the low or zero interest rate introductory periods. It is important that you should learn when the introductory period will end to help your prepare for another credit card balance transfer to another card with low interest or zero interest rate.

In order to get the best credit card offers, you have to shop around for it. It is a fact that there are a lot of zero interest and low interest rate credit card offers, but you should also keep in mind that these offers are usually offered on a limited time only. Make sure you read the small print in order to understand the promo and know when the introductory period will expire.

As much as possible, you should always consider the credit limit on the card you are considering to transfer the balance to. When it exceeds the credit limit, you will likely pay additional charges and will also make the interest rate rise. These are the things you should remember when making a credit card balance transfer.

Resource: http://www.isnare.com/?aid=100793&ca=Finances

The Basics Of Investing In Stocks And Shares By Joseph Kenny

Stocks can be considered a tool for building wealth, as they are a part of almost every investment portfolio. They represent the ownership of a company and are bought in the form of shares. Shares refer to the stock of a particular company. Your stake in a company depends on how many shares you possess, because these are considered a part of the company’s capital.

The popularity of investing in the stock market is increasing constantly. Today, investment in stocks and shares is not limited to the well to do; even the average middle-class is getting into it in droves. The opening up of markets with advanced trading technologies has made owning shares easy for everyone. However, if you are planning to invest, do not depend on luck to get you returns. Investment in stocks is considered a very risky affair. It requires a high rate of return. You need to use a well thought out strategy and necessary tools to invest in the share market.

The allure of investing in shares and stocks, however, does not mean that every would-be investor has the know-how of this often-slippery market. If you feel that the get-rich-quick theory applies to stocks and shares, then it is a misguided notion, because stocks are not the answer to instant wealth. Just like the real estate market, the share market also involves a lot of risk. Yet, people are often under the misconception that they will get rich instantly if they invest in shares.

You can buy a share in a stock when a company first enlists on the stock market – that is, at flotation or privatization. Alternatively, you can purchase shares once they are in circulation and are traded.

You could go to a stockbroker if you want to buy stocks. Stockbrokers do business with the stock exchange. They hold the shares in an account that is created in the name of the nominee. You can also keep your shares in the form of a paper certificate. Once the buying and selling of shares is over the transaction is made complete through an electronic system. This system is responsible for linking all the banks along with the stockbroker and registrars of the respective companies.

You can invest in international stocks as well. When a company performs trading in a stock market of another country, their stocks are known as International stocks. These stocks are traded like the UK stocks or, for that matter those traded in the Nasdaq in the US. All the stock exchanges in the world work in the same manner.

There is no guarantee when it comes to Investment in stocks but if you are ready to take a big risk then you can expect great returns on your investment. Despite the risk factor this form of investment has outperformed other investment options like bonds or saving accounts. So if you have the right strategy and you make the right moves in the stock market then nothing can stop the money from rolling in.

Resource: http://www.isnare.com/?aid=100434&ca=Finances