How Do Payday Loans Work?
I have two words when it comes to payday loans: RIP OFF! This type of lending is what I would classify as TRBL debt. T-R-B-L. Terrible. This type of lending is awful, and it should be illegal! So how do these loans work exactly?
First, these businesses set themselves up in sections of town where people have little money and little education. They prey on people who are in a financial bind and offer small loans of 200 or 300 dollars and then charge exorbitant amounts of interest. I have seen some interest rates as high as 782%!
As if paying these ridiculously high-interest rates wasn’t enough, these companies also force people to refinance these loans as often as every two weeks. This means that people are being continuously charged refinance fees on top of the crazy interest rates! Do you agree with me now? This type of lending should be illegal!
No matter how bad you think your financial situation is, I strongly urge you, do NOT fall victim to a payday loan. This type of lending is designed to trap you into a situation that you literally cannot win! Don’t let this happen to you!
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MONDAY MONEY TIP PODCAST: How to Never Have a Car Payment
Another episode of the Monday Money Tip Podcast is live! Many people believe they will always have a car payment but we’re here to tell you that this is simply not true. On today’s episode, we’ll share what you can do in order to never have another car payment. In our Current Money Events segment, we will cover the volatility in the stock market and later hear a success story from a woman who became debt-free including her mortgage!
It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us!
Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!
Email info@iwbnin.com to ask questions or share success stories.
NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website
Show Notes
About the Episode:
- We’ll share what you can do in order to never have another car payment.
- Get an update on the stock market in our Current Money Events segment.
- Hear a success story from Diane, who paid off all her debts including her mortgage.
- Hear how depreciation can (and will!) affect your vehicle’s value.
Resources:
I Was Broke. Now I’m Not.
Oxen Book
Known, Upcoming Non-Monthly Expenses Calculator
CarFax Article
Investment Value Calculator
Quote of the Day: “If you think no one cares if you’re alive, try missing a few car payments.”
Debt Freedom Date Calculator
Are you ready to pay off some serious debt in 2019? To say “goodbye” to the car payment, Sallie Mae and credit cards? If you said yes, the Debt Freedom Date Calculator found HERE on our website can really help you. This tool combined with the Debt Snowball Technique is how I became debt free and you can too!
Step One: Identify All Debts Owed (Lender, Amount Owed, Monthly Payment)
Make sure you list out all of the debts that you owe and how much each one is. You can check your credit report just to double check that you have no outstanding debts that you may have forgotten about.
Step Two: Sort Debts By Amount Owed (Smallest to Largest)
List your debts out by sorting the debts from smallest to largest by the amount owed. Make sure you have sorted by the amount owed and not the payment amount.
Step Three: Pay Minimum Payments on All Debts, Except The Smallest Debt
Make the minimum payment on all of the debts except the smallest one. It can be very tempting to start to attack your credit card bills or car payment but if that is not the smallest amount you owe, make minimum payments for now.
Step Four: Apply Any Extra Money to Smallest Debt
If you have leftover money in your budget, apply that to the smallest debt that you owe. The quicker you can see a victory, the more effective this technique will be!
Step Five: When Smallest Debt is Eliminated, Add Its Monthly Payment to Next Smallest Debt
Once you have paid off the smallest debt, take the payment you were allocating towards it, and apply it to your next smallest debt. That way, as you pay off more and more debts, you’re creating a debt snowball!
If you would like more information on this topic, check out this quick YouTube video HERE where I explain the technique and give visual examples.
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MONDAY MONEY TIP PODCAST: 8 Ways to Speed Up Debt Elimination
This week on the Monday Money Tip Podcast, we’ll be sharing eight ways that you can speed up your debt elimination process this year. If you made a New Year’s resolution to pay off debt, this information can help you make some significant headway! I’ll also check in on your other resolutions that you made at the beginning of the month and share how your daily habits can help you accomplish these goals. We also have a success story from one of our Savings Challenge participants who saved $6,000 in their annual budget!
It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us!
Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!
Email info@iwbnin.com to ask questions or share success stories.
NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website
Show Notes
About the Episode:
- I share how you can carry your New Year’s resolutions throughout the year by focusing on your daily habits.
- Megan and I discuss eight specific things you can do to gain significant traction in your debt payoff journey.
- Hear a success story from participants of our last Savings Challenge who saved $6,000 in their annual budget.
Resources:
0% Balance Transfer Credit Cards
Annual Plan Tools
Budget Challenge
Savings Challenge
Episode 26
Episode 27
Salary.com
Quote of the Day: “I’ve never seen anyone achieve financial freedom by obtaining lots of credit card points and airline miles.” – Joe Sangl
Debt Payoff Spectaculars
Did you make a resolution this year to finally off that debt that has been hanging over your head? Once that debt is gone, that payment will be freed up for you to start making progress towards your plans, hopes and dreams. If you need a visual tool that can help you gain traction in your debt freedom journey, you should check out our Debt Payoff Spectaculars found HERE on our website.
These spectaculars are incredibly easy to use and can give you a visual representation of your debt being paid off. All you have to do is take the amount of debt you owe, and divide that by the number of squares on the payoff spectacular. This will give you the amount of debt that each square represents. Each time you make a payment in that amount, color off a square!
While it may sound simple, there is something cathartic about visually marking that debt out of your life. If you’re paying off a truck, you can physically see the amount of that truck that you now own and you will find yourself wanting to color more and more squares. You might even go crazy and adjust your budget to cut your spending and allocate more towards debt!
Check out our Debt Payoff Spectaculars HERE!
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