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Help Bills! Home Debt March 25, 2009

Posted by 2bdebtfree in Financial Debt Budget.
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If you are in serious home debt then you need to visit these websites to find out if you can get help. Visit both to see if your mortgage is owned by one of these companies. You may be entitled to refinance or modify your home loan.



UPDATE: Well, I checked into our home and it is owned by one of these companies but we have not lost enough value to be able to refinance or modif our loan. Now is your chance to refi especially if your home is over 31% of your income or if your home has lost more value than what your first mortgage is worth. Take the time to check into these possible methods to save some real cash.

Step 2: Stop Spending! Yes, Now! March 17, 2009

Posted by 2bdebtfree in The Steps to being Debt FREE!.
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If you are finished with step one and have organized your income and bills then, you are now ready for step 2. Stop Spending & Investing. Stop wasting your money on all of the extra junk you buy right now. The sale items, the coffees, the vending machines, the fast food. Now is the time to cut that spending. Plus, I know right now is a great time to buy stock and if you are debt free you can invest as much as you want, but if you are reading this blog, then you need to stop.

This was a really hard step for us. I have been investing in stocks since I was 15. All of last year, we kept investing…and looking back I saw my money going nowhere. We decided that starting in January we were going to stop investing in the market. We took that money and applied it to our next debt that we are  paying off. That put an extra $50 bucks or so…in our pockets to pay on debt. Since then everything as been snowballing and we have been paying off debt faster than ever last year.

If this is too drastic or maybe it’s just crazy and you need that feeling that you are still saving for the future. This is what you can do, invest only what your company will match. So if you company match is up to 4% then save 4%, if they match up to 2% then that’s all you should be investing when you are trying to get out of debt.

Try it for 6 months and see if you can do. If you are not using the money for debts, then you can go back to investing. But if it works then you will be out of debt a whole lot faster.

Now get to it.

Don’t let the Debt Get You Down! March 16, 2009

Posted by 2bdebtfree in Financial Debt Budget.
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Don't Stress about Unhealthy debt. Get Rid of Debt!

Don't Stress about Unhealthy debt. Get Rid of Debt!

Starting out is the hardest part. When you get started and make a budget you might be a little saddened by where your money goes every month. It’s different with everyone. Maybe you spend it eating out, clothes shopping or things. “Things” add up. Make sure you include some “blow” money that you can spend on anything in your budget. Just remember, once the money is gone, it’s gone.

Now that you have figured out that you need some blow money and how much (that is up to you). You are going to need to find out where you can cut some spending. This is a small step in getting out of debt, but it can add up quick if you really tighten up the spending.

Start with the big expenses!

Home Insurance
Car Insurance
Car Payments
Eating Out/Drinking
Cell Phone Bill
Home Phone Bill
YMCA/Country Clubs
Beauty Treatments

This is just a short list of monthly bills to see what you can trim from your budget.

What you need to know about the 2009 Stimulus Tax Changes? March 12, 2009

Posted by 2bdebtfree in Financial Debt Budget.
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Changes in Income Tax Withholding

Matax_savings_planking Work Pay Tax Credit (MWPTC)
American Recovery and Reinvestment Act of 2009.

The 2009 and 2010 credit amount per year is:
$400 per single
$800 per married couple

The tax tables were changed based on a January 1, 2009, start date and were intended to be spread out over the entire year. Your Payroll to date may have been processed under the old tax tables and most employees will not receive the entire credit on their 2009 paychecks. Any difference will be refunded when your federal income tax return is filed next year.

Claiming …

Single: Approximately $15/bi-weekly
Married: Approximately $30/bi-weekly
Note: The “married” tax tables assume that only one spouse is working

If you have 21 pay periods left in 2009. If you are claiming Single, you will see approximately $15 more in net pay per pay period.

$15 * 21 pay periods = $315

You would receive the remaining $85 ($400-315) upon filing your 2009 federal income tax return.


Married and Both Spouses Working

If you are married, both spouses working, and both claiming “Married”, you may owe additional tax when you file your taxes for 2009.

Spouse 1: $30 more per pay period with 21 pay periods left in 2009
$30 * 21 = $630

Spouse 2: $30 more per pay period with 21 pay periods left in 2009
$30 * 21 = $630

$630 + $630 = $1260

According to the Making Work Pay Tax Credit, a married couple is entitled to $800 but received $1260. They would owe an additional $460 in tax.

Work for two or more Employers

If you work for two or more employers, you may owe additional tax when you file your taxes in 2009.

Your net will be increased at each job (federal tax would be reduced) resulting in owing additional money at tax time.
_ _ _ _

To offset the double credit, you may want to have an additional amount withheld each pay period. To do this you will need to complete a new W-4 form and indicate on line 6 an additional amount to be deducted for your federal tax.

PAID OFF OVER $11,700 of DEBT: Extra Money was the key! March 12, 2009

Posted by 2bdebtfree in Financial Debt Budget.
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The Key To Success!

The Key To Success!

Last year when everyone started to worry about the economy, my wife and I were highly focused on our budget and paying off debt. We did NOT to do a consolidation loan because it hurts your ability to see how bad your debt really is. It does not truely provide any debt relief. Last year we paid off over $11,700 of debt. That is almost $1,000/mo. of debt paid off. Now just so you know, we don’t make that much over what our bills cost. So how did we pay that much on debt… It was not just one or two things, but several things combined that made it possible.

We started making some extra money with several strategies. First, we picked through our house and found many, many things that we did use. We put those things in a couple of garage sales over the year. That made a little extra money. We also took some of those items and put them on http://www.Ebay.com. Old dolls, old video games, movies, toys, etc… I also, took a part-time job for six months. That extra money adds up.

It was very difficult, the first few months because it’s slow going paying off debt. Don’t be discuraged! The speed of paying off bills increases as you make more and more changes. The best change you can make and make right now is to stop spending. This is not what the government wants to hear or any of our business that we shop at but the only way you can get out off debt is to live on less than you make.

Start with your monthly bills…What bills are for items that you don’t need? It’s not that you don’t want this or that, but what items can you save some money on.

The FIRST STEP to becoming DEBT FREE is organizing your bills and income. March 10, 2009

Posted by 2bdebtfree in Financial Debt Budget.
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The First Step is to look at every one of your bills. See how much debt you owe to each company, how much interest they charge on the debt and how much the minimum payment is. Create a spreadsheet and write all the details associated with each bill. Make sure to include the total owed, the monthly payment, interest rate and when it is due! This allows you to see exactly how much you owe and when. This is the begining of your budget. With this information you will be able to manage your debt and make smart choices.

Take the poll: What debt could you live without? March 10, 2009

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Quick Tip to Save Money doing your Taxes! March 9, 2009

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There are several FREE or inexpensive online tax preparing websites listed on www.irs.gov . Go here and choose one that is right for you. Then use your tax forms from last year as guide for this year’s taxes. If I can do, so can you… Go save yourself some money.

Don’t Fall Victim to the Debt Society. March 4, 2009

Posted by 2bdebtfree in Financial Debt Budget.
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debt_society_zombieIt is never too late to start working on becoming debt free. Here at the debt freedom class we want to help everyone that has fallen into the Debt Society. We feel that we need to keep up with the Jones’ new this or that. But what we don’t know is that the Jones probably bought that new whatever on credit. Which means? They don’t really own it yet. They have it and they can play with it, but they will also be paying for it for in the long run. I mean in the looooong run. If the Jones’ bought new fancy living room furniture for 0% down and no payments for 2 years. The original cost was $3,000. If they made payments for those 2 years it would only be $125/mo. That sound cheap. Here’s the problem with that , lets say Mr. Jones lost his job. He has no emergency fund and can’t pay for the furniture for the next 2 years because he ran up his credit cards while looking for a new job. So after those first 2 years are up the interest was 29% on his furniture. He now owes $4,740 and the interest keeps piling on…. The Debt Society wants you to believe that low payments are the way to go. Truth is this, it just adds risk to your financial future.

By the way, that furniture the Jones’ own is now 2 years old, starting to look a little ragged, and has some stains. Does anybody really want to pay $4,740 for stained and ragged furniture? …I didn’t think so….

Join In: The Debt Freedom Class March 3, 2009

Posted by 2bdebtfree in Financial Debt Budget.
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Let’s join together and become debt free. We’ve started this blog to help others like us get out of debt. We ‘ll be talking about ways to get organized, cut spending and creating a budget. We want your comments and suggestions to help others around the world become debt free. If you would, email us questions that you have and we will try to answer them the best way we can. With everyone forecasting doom and gloom for the economy, now, is the time to start preparing for your financial freedom.

Please email questions to: patrick@debtfreedomclass.com.