Archive for December, 2008

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9 Steps to Achieve New Year’s Debt Reduction Goals

Wednesday, December 31st, 2008

This is the second article in a two-week series on setting effective New Year’s goals for getting out of debt. You can share your debt resolution with others here. You can share your debt resolution with others here.

Yesterday, we talked about the reasons for putting debt reduction in your list of New Year’s resolutions, including better heath, relationships, confidence, and security.  Perhaps most important, eliminating consumer debt can save the average borrower about $4,000 per year in interest costs.

How would you feel with an extra $4,000 per year?  Would it change how you get along with your spouse?  Would you feel less at risk financially?  Would you have more self-confidence?

If the answer to any of these is yes, start today.  We know that the process of paying off debt can be daunting, so we’ve laid out nine essential steps that we’ve identified through working to help others pay down debt.  It’s not as hard as you think and we’ll walk you through the essential steps in upcoming posts.  But in case you can’t wait to get started, here are the 9 essential steps:

  1. Stop using your cards
  2. Get organized
  3. Set family priorities
  4. Get SMART.  Set SMART goals for debt reduction
  5. Make a plan
  6. Simplify for success
  7. Tell your goal to others
  8. Ask for support
  9. Track your progress

Through the remainder of the next two weeks, we will discuss these techniques for getting out of debt.  Be sure to follow these posts as we show you how you can buck the odds this year and take steps to build a debt-free future.

We wish you all the best in the upcoming New Year.

Scott Crawford is CEO of DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs.  DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

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Posted in Credit Card, Debt Management, DebtGoal, Emergency Savings, Lending Industy, Paying Down Debt, Saving, Spending, Uncategorized | View Comments

Make Debt Reduction Your 2009 Resolution

Tuesday, December 30th, 2008

This is the first article in a two-week series on setting effective goals for getting out of debt. You can share your debt resolution with others here.

The New Year is almost upon us and with it comes the inevitable introspection when we decide our priorities for the upcoming year.  We consider our dissatisfactions and dreams and put pen to paper to create a list of things that we imagine with make us happier, healthier, or better in relationships.

Last year, Franklin Covey reported that getting out of debt was the top resolution, topping the perennial weight loss heavyweight.  Similarly, MyGoals.com reported that the debt reduction was the top financial goal for 52% of respondents.

How did we do against our debt reduction resolutions last year?  Not so well according to government stats: aggregate consumer debt was up 2.3% to $2.6T and credit card debt increased 3.7% to $876B.

This year, with the credit crisis and economic recession, you may be thinking of making debt reduction your resolution.  If you are, you’re not alone.  According to a May 2008 Transamerica survey, debt reduction is the top financial goal for households with less than $100,000 in annual income and it was also the top use for the government stimulus checks earlier this year.

If you’re thinking about making debt reduction your New Year’s resolution for 2009, we enthusiastically encourage you to “Just Do It!”    Here are a few benefits:

  1. Better financial future:  The road to your financial future goes through your debt.  In the short term, paying off consumer debt will save the average borrower $4,000 per year in interest.  In the long term, it will position you to achieve other financial goals such as retirement or college for children.
  2. Better health:  Several recent studies have documented the impacts of debt stress on heath and relationships.  Debt stress can lead to sleep loss and has even been linked to preterm births.
  3. Healthier relationships:  Eliminating the stress of debt frees you to focus on your relationship and removes the bickering that occurs over competing goals.
  4. Confidence:  By just starting the process of paying down your debt, you’ll find yourself feeling more in control of your life and the satisfaction of making progress.
  5. Security:  Debt forces us to live on the edge, at the risk of hitting a slight economic speed bump that can send us into a tailspin.  Without debt, you will be better able to weather economic hiccups.

This year, you can improve your life by taking steps to eliminate debt.  Over the next two weeks, we will discuss the best techniques for getting out of debt.  Be sure to follow these posts as we show you how you can buck the odds this year and take steps to build a debt-free future.

We wish you all the best in the upcoming New Year.

Scott Crawford is CEO of DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs.  DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

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Posted in Debt Management, DebtGoal, Paying Down Debt, stress | View Comments

DebtGoal.com launches, enabling consumers to achieve top financial goal in the New Year – paying down debt

Tuesday, December 30th, 2008

DebtGoal.com takes socially responsible approach, helping consumers gain perspective, establish a plan, overcome obstacles and achieve goals

San Francisco, CA, December 29, 2008 – GoalSpring today announced the launch of their online application, DebtGoal.com, an easy-to-use tool to help consumers with debt to create and manage a plan to pay it down. DebtGoal delivers peace of mind, helping consumers reach their financial goals.

Consumers securely enter debts (credit card, student loan, auto loan, mortgage, etc.), interest rates and payment schedules into the DebtGoal.com application – and it delivers a customized, dynamic, easy to follow plan to pay down debts as efficiently as possible. DebtGoal sends reminders and tracks progress to ensure every dollar spent on paying down debt is maximized. DebtGoal also provides a support system, where users share tips, stay motivated and gain valuable feedback from experts.

“More consumers than ever are experiencing stress regarding personal debt, and prior to DebtGoal there were no tools focused specifically on paying down debt. Financial planning programs are geared to the affluent, with significant assets to be managed. But for a large percentage of consumers, debt remains the greatest hindrance to attaining financial security. I’m excited to deliver the Alpha version of DebtGoal, and make more New Year’s resolutions a reality as we continue to develop the application! We make it easy – streamlining what would otherwise be a complex process for most.” said Scott Crawford, CEO and co-founder of GoalSpring.

Last year, studies showed getting out of debt was the top New Year’s resolution. However, according to government statistics, Americans had a tough time sticking with resolutions. Aggregate consumer debt climbed 2.3% to $3.6T and credit card debt increased to 3.7% to $876B.

This year, consumers have a powerful tool on their side with DebtGoal.com. A recent survey revealed that once again, paying off debt is the top financial goal for households with less than $100k annual income, and was the top use for government stimulus checks. DebtGoal.com provides a desperately needed solution for individuals who would like to get out of debt, but are facing common challenges along the way.

About GoalSpring

Headquartered in San Francisco, GoalSpring was founded out of a desire to break the mold of previous financial services companies that push products rather than help people achieve goals. GoalSpring is committed to the social mission of enabling people to reach their financial goals – and measures its success based on clients’ success. The company has received funding from NewCycle Capital, a venture capital firm that aligns with entrepreneurs who are passionate about their company’s mission and motivated by a desire to affect positive change in the world. “Getting out of debt” is today’s consumer’s #1 financial goal. DebtGoal makes the process as simple as possible. Empowering each consumer to achieve that goal is their top priority. More information can be found about DebtGoal at http://www.debtgoal.com

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Making Debt Reduction Your Goal for 2009

Monday, December 29th, 2008

New Year’s resolutions run the gamut from the outlandish (sky dive, climb a mountain) to the traditional (lose weight, help others more). An atypical resolution that will make a difference this year is more than a one-line “pledge to get out of debt” – it is a straightforward plan to do so.

 

Promising to end debt a boring and cliché resolution? Be stylish and realistic in your pledge and design a good plan. Here’s an idea:

 

“My 2009 resolution is to improve my personal finances and the first step is to aggressively eliminate my outstanding debt. Once I am completely free of debt, I’m going to save up for and pre-pay a tropical vacation to celebrate. Staying out of the red is going to be a cornerstone of my lifestyle moving forward. I pledge to the following plan:

 

a)      Write all of my debt down on paper, with the name of the lender, outstanding amount to be paid off, and terms of repayment.

b)      Prioritize the debts from most to least pressing to pay off. (Number them)

c)      List my monthly expenses and income. Set up a budget that trims unnecessary expenditures and comes up with a consistent amount that I can contribute towards monthly debt reduction.

d)      Start this action plan with the month of January 2009, with a modest reward for myself if I follow through with the game plan for each of the first six months of the New Year.”

 

Research shows that half the battle is proving that you can set up a plan and follow it.

 

If your debt is enormous, this is not a reason to avoid the most important resolution you can make. Simply adjust the resolution to represent a pledge to eliminate a large percentage of it (e.g., 50%) within the next year.

The best part of using a New Year’s resolution as a promise to eliminate debt is that you can let your promise be known to friends and family in a way that feels less difficult because everyone makes a resolution. It feels good because it comes off more as a declaration than a confesssion.

Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs.  DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

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Holidays on the Cheap

Tuesday, December 23rd, 2008

 

With so much focus this season on saving while shopping for presents, one can easily forget how holiday events themselves can entail significant costs aside from any wrapped gifts. J.D. at Get Rich Slowly provides some excellent advice on Christmas frugality. Two of his best tips are:

1. Hold the family gathering after December 25th. The full range of supplies for the any celebration is heavily discounted.

2. Focus on family traditions, not the gifts. Kids enjoy consistent traditions and relaxation with family as much or more so than expensive presents with fleeting value.

Other great ideas for holidays on the cheap include:

  • Sharing meal preparation with your guests to help even out the costs of food and supplies
  • Building a family history
  • Playing board games that you already have access to
  • Watching and playing sports
  • Sharing family stories and telling jokes
  • Burning CDs of holiday music for enjoyment the next couple of weeks
  • Playing in the snow, hitting the beach, swinging by the park, or hiking – depending on location and weather conditions
  • Building and enjoying a fire in the fireplace
  • Singing carols
There are many more options than these that make the holidays fun, enjoyable for everyone, and all at little or no cost. Brainstorm a list of your own and you can easily fill several days with memorable experiences.
                                                                                                                                                               
Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs.  DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

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Posted in Saving, Spending | View Comments

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