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Health & Fitness

Debt, Debt, Go Away! (Part I)

Debt. Most everyone has it. But what if you have too much or just simply want to have less? There are simple things you can do to help shrink your monetary burden.

Debt. Most everyone has it. That’s why it’s such a popular topic in the news, on talk shows, in magazines, EVERYWHERE!  Debt can even be good. 

But what if you have too much or just simply want to have less?  There are simple things you can do to help shrink your monetary burden.

I want to make it clear that this is not a judgment on how people spend their money.  In my business, it can be difficult to help the clients who don’t truly want to help themselves! Let’s face it, if you simply MUST have a $4 coffee everyday, there isn’t much I can do to stop you.

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But I can give you other suggestions for getting your finances in order. I hope you will learn some new ideas here – not the same old advice to use coupons, cut up credit cards, cancel fitness club memberships, etc. Those ideas are great, but there are other things you should consider to help move the needle. 

Some of the following ideas will take a bit of time and effort, but they won’t necessarily require you to give up all of those little “rewards” that make you happy! (Oh, one exception before I continue - if you are in serious debt or you want to more quickly affect the amount of debt you are in, then by all means – GIVE UP the $4 coffee & other “luxuries”!!!!)

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Here are a few thought starters for you to ponder – I will include more ideas in “Part II” next week:

  • Call your insurance company once a year to ask for the current best rate on homeowners, auto, etc.  Consider increasing deductibles.  Ask if there are any “group” rates – alumni associations, credit union memberships, etc. to lower your costs.
  • Call other insurance companies for a quote to ensure you have the best rate available.  For some reason, insurance companies don’t seem to reward loyalty.  I do this every year or two and I almost always find a better rate elsewhere. 
  • Check your credit report and score annually.  First, make sure your credit report is accurate and then do things to improve your score.   Why is this important?  Not only are mortgage rates, auto loans, and credit card rates tied to your credit score, but did you know your insurance rate is partly based on it as well?  Also, sometimes even cell phone and utility rates and deposits for apartment rentals can be determined based on credit scores. 
  • Call your utility companies – ask if you’re getting the best rate available.  If you are a Senior, verify that you are listed as such so that you get any Senior rates available.  Really think about whether you need caller id, voicemail, etc.  Ask to be put on “interruptible service” for your a/c in the summer – the rates for electricity are lower if you agree to this program.
  • If you have a newer vehicle, check the vehicle manual – newer vehicles need an oil change less often than older vehicles (some are now recommending 10,000 mile intervals – wow!)  Of course, this depends on the type of driving you do, etc., but it’s worth a little research.
  • Rent movies from your local library.  I love this one for a few reasons – in Grosse Pointe, kids movies and documentaries are free, adult movies only cost $1.  You can “reserve” videos and books online and you will receive an email notice telling you when the DVD/book is ready for pickup.  AND you can request the branch most convenient for you to pick up the item(s). 


Some of you might be thinking, “Wendy, I thought you said this would be simple?” or “But Wendy, I’m just not interested in spending my precious free time doing these things”.  As a finance “geek”, I admit I sometime forget that not everyone is like me.  So, where can you turn for help if you aren’t comfortable doing this on your own or you simply don’t have time? 

There are non-profit organizations that help people lower their debt such as the Consumer Credit Counseling Service.  But be careful – not all organizations that tout themselves as non-profit will actually assist you for free. Also, not all agencies are the same, so do your homework to find out which one is best for you.   

If you prefer a different, more personal route, you can hire a daily money manager.  These professionals can help you sort through your bills, give you recommendations on how to reduce monthly costs, and help restructure your finances to lower interest payments and fees.  They are available on an ongoing basis or as a “one-time” consultation sort of project.  There is an American Association of Daily Money Managers.  See www.aadmm.com to obtain more information about daily money managers and a list of members of the association.

Finally, you can try to do this on your own.  The FTC is a great resource for information on how to reduce debt and scams to watch out for.  See www.ftc.gov/bcp/edu/microsites/moneymatters/index.html for more information.

If you have questions or comments, please feel free to contact me (wendy@SheffieldDMM.com).  As mentioned earlier, look to Part II next week for more ideas.  Thank you and happy debt lowering!

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