Debt Free Financial Advice

Relationships

Advice

Family

Frugal Living

Friendship

Advice About Money

Food & Recipes

Live Fully

Celebrations

Quotes & Poems

About Mom

Subscribe To This Site

Debt Free Financial Advice

The need for debt free financial advice begins when children are first learning about money. At every stage of life there is money management advice that is specific for teens, college students, adults and seniors.

There are some times of life when we are more likely to accumulate debt. The first time most of us take on significant debt is when we go to college. This college financial advice page can be the beginning of a healthy financial future.

Getting married, buying a home and starting a family are other milestone events that can load us down with debt including mortgages and credit card bills. After a divorce, because of an illness, the loss of a job or with diminished income in our senior years...all are times we may find ourselves overwhelmed with debt.

Women often find themselves facing the challenge of being newly single and responsible for children. They also often take on the care of an aging parent or need to go back to college. If this applies to you, check out our financial advice for women page for some tips about the challenges women face when dealing with finances.

Our financial advice for seniors page has some tips for planning for retirement years or, if you are a senior, learning to do more with what you have.

Fortunately, for anyone at any stage of life, there are ways to pay off debt, even substantial debt, and then remain debt free. These methods will require some organization and sacrifice, but the peace of mind gained is definitely worth the effort. You can access lots of free financial advice online as well as some great financial planning tools that are free to use.

Money management advice is available if you are currently having trouble managing debt. There are specific steps to take to pay your bills and learn new financial skills. This debt free financial advice can be a path to a new beginning.

There are some basics that apply to any financially challenging situation.

How Much Do You Owe?

The first thing you need to do is to sit down and figure out exactly how much debt you have. This may be intimidating and scary, but it may also be a much needed wake-up call. You should also order your free credit report from annualcreditreport.com.

Make a Budget

The next step you need to take is to make a budget. Be willing to do some very frugal budgeting. Having a budget will help you keep your spending under control and plan for the future. It will also help you determine how much money you can put towards paying off debt. Even if you do not have any debt, it is still a good idea to have a budget so that you do not overspend. Mint.com- free personal finance software can give you great money management advice.

Debt Free Financial Advice: Make a Plan

This piece of money management advice is to develop a written plan for how you are going to pay off your debt. Sit down and figure out exactly how much you can afford to pay toward each of your debts every month based on your budget. In order to do that some frugal money saving tips will help you cut expenses in many ways.

There are many books on financial planning. Some of the best are by author and financial guru Dave Ramsey. Our personal favorite is The Total Money Makeover: A Proven Plan for Financial Fitness.

The Snowball Strategy

One very effective way to do this is called the snowball strategy. This plan has you pay off one debt at a time. You pick debt and put all of your extra money towards paying off that one account. This is a great way to quickly reduce the number of debts you are paying every month, which will simplify your life. Author Dave Ramsey has the details posted on his website: Get Out of Debt With the Snowball Plan

Repeat Until All Debts Are Gone

Once that debt is gone, you take all the money you were paying towards that debt and start paying off another. Many people choose to pay off the debts with smaller balances first. This is a good way to motivate yourself, since you can pay off small debts relatively quickly, giving yourself a sense of accomplishment.

Keep Up With the Other Debts

Keep in mind that even though you are focusing on paying off one account at a time, you will still need to make the minimum payments on your other debts so that you do not have to pay late fees or lower your credit score.

Stick to Your Budget

If you are already out of debt, the best debt free financial advice to stay out of debt is to make a monthly budget and stick to it. It is also a good idea to not rely entirely on credit cards. Good advice about money is as old as human history. Christian financial advice, based on biblical principles, can be an encouragement to stick to your plan.

Best Debt Free Financial Advice

If Possible Pay Cash - A good general rule of thumb is that if you cannot afford to pay cash for something, you should not buy it. This may not be the case for larger items like a house or car, but make sure that you can afford the payments when you take out loans.

From Debt Free Financial Advice to
Best Advice From Mom Home Page

SBI!