Week #8 - Keeping Debt Under Control
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Greetings
Hello and welcome to the Community Renewal Team (CRT) 2024 Financial Literacy Institute Blog. This blog is not public; It is open to those enrolled in our Institute. We use this blog to communicate about assignments; to share resources, and to discuss matters of importance to you! We look forward to our shared experience! ~Eileen Feliciano
week#9 Savings and Wealth Building
Last evening, we addressed preparing for retirement and building wealth. How prepared are you? What measures do you need to undertake to ensure a retirement safety net? 6 ways to save for your retirement: Focus on starting today. Contribute to your emergency fund. Reduce debt with Avalanche or Snowball Method. Rein in spending Set a goal/ Automate your savings!
I'm going to use both methods. I wrote down all my credit cards balances and the interest for each one. The biggest interest one I will start paying down on and get the utilization under 30%. I want to start getting my credit score up. My lowest bill is $52.00 so I will get that paid off this week. My plan is going to be in rotation. Go down the list for the next high interest rate and the next lower balance I have and start paying that down. I think I will see progress by doing that. I'm tired of feeling in distress. I need to take back control of my financial well being so I can breathe again. I had a melt down yesterday. No more!!!
ReplyDeleteIt sounds like your considering options around paying off your debt ...and planning it through - will meet with quite a positive regard on your credit score! It can be easy for me to fall off track, up until now, yet I have heard it takes 40 days to create a new habit. It sounds like using your credit card differently, and practicing debt pay-off techniques consistently, will help you to reach your goals of breathing easily and freely! Distress begone! Here comes the sun!
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DeleteHi Stacy good strategies you are using for paying of balances. Little steps make huge impact in our finances. Celebrate this payment because it's one less. Excellent job!
DeleteHi Stacy , i understand those meltdowns all to well, but also its not easy to stress over finances. I think you using both methods, would work for those that can manage it, and good luck to you.
DeleteHi Jess, I love a good sunrise, thats an opportunity to see a new day, and get a do over!!
DeleteThats great Stacy, that you have a steady eye on your monthly credit card charges, I think that is how a credit card should work, just a one-month loan. But I know credit cards can also be there in case of emergencies. Yes, you are correct, you can take control back. You should be proud of yourself.
ReplyDelete" A big part of Financial Freedom is having Your Heart and Mind Free from Worry about the What-ifs of Life. ( Suze Orman)
ReplyDeleteThat sounds most lovely. Eileen! I want to be in that state of being!
DeleteThanks Eileen, i definitely need a worry free heart and mind when it comes to finances..
DeleteI currently am not in a financial position where I can apply the Avalanche method. I have a Personal Loan, a Credit Card Balance, and a small amount of money owed to a friend. I am paying a bit more than the current amounts due on the former debts and am chipping away at the latter debt. I believe I will re-frame the plan to Snowball off the latter debt, paying my friend back - most especially after the conversations around being owed money ourselves!
ReplyDeleteJess you are taking very important steps to pay debts you are paying more than the due amounts and repaying your friend. You are doing a really good.
DeleteJess still you are moving in a direction most positive for you..
DeleteI am currently employing the snowball method to expedite the repayment of my smallest debt. After successfully addressing one credit card and settling the balance, I can transfer the funds to tackle another credit card. This month, I’ll be able to completely pay off one credit card. I find the snowball method to be motivating, producing a clear incentive to eliminate my debt.
ReplyDeleteThis is great news Nicole that the snowball method has help you to gain control and eliminate any debts.
DeleteHi Stacy, combining both methods is and excellent approach. It demonstrates your commitment to overcoming your debt. Congratulations on successfully settling your lowest bill! I intend to adopt your strategy, and it’s a great feeling to begin the debt elimination process. The motivation is crystal clear: one less to go. You are taking charge, so take your time. You are making significant progress, and I encourage you to keep up the excellent work.
ReplyDeleteThe combination of the 2 is a great idea, I love 1 less to go, thats a great way to take charge and free up some space and move some money onto the next payment(s).
DeleteHello Jessica, I find the avalanche method a bit daunting. I am taking a more gradual approach, with a specific goal in mind. It’s a great strategy to exceed the minimum payment. I appreciate your intention to repay your friend, and I admire your dedication to both your financial well-being and the preservation of your friendship. You are on the right track, one step at a time, and I have confidence in your ability to succeed.
ReplyDeleteAh, a specific goal, Nicole. Now that sounds like an incredible, powerful conduit for you intention, attention, and action steps!
Delete...I can forget, sometimes, what is really important to me in life - getting distracted by the shiny things which, in the end, don't really nourish me. I have been practicing this idea - of coming back to my values this week.
This saying lands with resonance "I am intentional with my attention." Some, switch it around "I am attentional with my intention." Which, if either, lands with resonance with you?
Thank you Eileen
ReplyDeleteI been very careful with use of credit cards keeping them with limited used. But when pulling my credit report found collection this something I need to take care of by reaching out to the collection company settled this account and then report the payment to all Credit Bureaus.
ReplyDeleteLiz, you continue to inspire me with your habits! Using your credit cards in limited ways. Great catch on your Credit report and plan of action.
DeleteThank you Liz
ReplyDeleteStacy,
ReplyDeleteWhen I read your response, I had a felt sense of my inner Queen being encouraged to rise up and my inner Princess inspired to continue to change her ways. I appreciate & value your support.
With gratitude for sisterhood,
Jess
The snowball method is what would work for me , as it would allow me to pay down my smaller debts 1st, also allowing that balance to be paid of faster, then working on the following debts , until they are eventually paid off also to reduce those high interest rates.
ReplyDeleteThis way this also reminds me to be careful, if in or nearing in this situation again, i would be more mindful going forward giving me the needed motivation and encouragement knowing that I could do it.
Jess you are a Queen !!!! What a great encouraging sisterhood we all have here..
ReplyDeleteI missed this class but can say that I don't have an issue with my credit cards as I only owe one and is manageable for me at this moment. My main issue is pretty much my light bill. No matter how much I pay it seems not to go down or I pay the bill and in a blink of eye the next one comes out. This is new to me as I moved into a unit that heats with electric. With that being said I did call the company and was put on a payment plan. I will continue to pay that amount monthly and be rewarded at the end of the program.
ReplyDeleteEileen I would like to know more about these methods, do you have anything to provide for me?
It was a great class! I could share my notes if you'd like...
DeleteHi, I prefer using the snowball method to pay off smaller debts that I have. Once my debts are paid in full (starting with the smaller debts that I have) I am going to be very careful and make sure I make payments on time before they affect my credit.
ReplyDelete