177th Carnival of Debt Reduction - Friendship Edition

February is International Friendship Month. The support and understanding of friends can be invaluable when working towards your debt reduction goals.



A friend is one to whom one may pour out all the contents of one's heart, chaff and grain together, knowing that the gentlest of hands will take and sift it, keep what is worth keeping and with a breath of kindness blow the rest away." – Arabian Proverb

Budgeting

(Editor's Pick) Budgeting really is inescapable, especially when you’re just starting on your debt reduction journey. Bible Money Matters gives a very comprehensive how-to guide in, “Jumpstart Your Economy: Doing Your First Budget”.

The Digerati Life has “How to Make a Budget in 10 Easy Steps”. Another excellent “how-to” if you’ve not been using a budget.

Trisha Wagner, writing as a guest poster on DebtKid, explains, “Why Budgets Don’t Work for Everyone”. In an interesting observation, she says one of the biggest blunders people make is to budget according to how you would like your finances to be instead of how your finances are in real life.

One of the writers at The Happy Rock who refers to himself as the Debt Destroyer shares his monthly expenses for January. It’s a good example of how we all define wants vs. needs differently!



"Grief can take care of itself, but to get the full value of joy you must have somebody to divide it with." –Mark Twain

Saving

(Editor's Pick) MasterYourCard gives a very comprehensive explanation of the different types of checking and savings accounts in, “The Difference Between Checking and Savings”. It’s a good review for people learning about banking.

Budgets Are Sexy tackles the very controversial idea that saving is hurting our economy in, “Americans Spending Less, Saving More – This is Bad?” I agree that spending our way out of recession is the wrong solution!

What if you want to save but, because of past errors in judgment, no bank wants to do business with you? Make Money/Save Money/Invest Money writes about the ChexSystem that keeps all its member banks informed about your bad deeds and gives some advice on how to get on with the business of banking in, “Second Chance Checking Accounts: Banks That Do Not Use ChexSystems”. Being unbanked definitely makes life harder.

It’s a fact. “American’s Are Saving More”. Wealth Junkies reports on this promising statistic but points out that money used for reducing debt is considered “saved” for the purpose of this government report. Well, okay, that’s still a good thing.


by Super Qatari

"Don't walk behind me, I may not lead. Don't walk in front of me, I may not follow. Just walk beside me and be my friend." Albert Camus

Cutting Expenses

(Editor's Pick) In an excellent article, I Pick Up Pennies asks, “Are You A Frugal Fire Fighter?”. She’s wondering if perhaps we aren’t being just a little too hard on ourselves.

In “Money for a College Student”, The Liberal Artist, a college student at Case Western Reserve University in Cleveland, urges college students to watch their spending. Cutting down on bar bills might be a start!

In, “Lessons Learned from Being in Debt”, FSC lets us know some various pitfalls of spending more than we can afford.

Living Almost Large posts about a financial situation she read about on a message board and asks her readers for input in, “The Sinking Ship”. When one person loses a job, the couple must cut ALL unnecessary expenses. Sometimes that reality can be brutal!

Are you house hunting? Home/Own writes on how to minimize house hunting expenses. “House Hunting Expenses and How To Minimize Them” is the second in a two-part article.

In my opinion, tracking your spending is the most important part of getting a handle on your finances. M is for Money admits she struggles with this exercise in Part Three of her “Deliverance From Debt: Where Did My Money Go?” series.

Green Panda Treehouse is just about to pay off her car loan. She shares her excitement in “Car Loan Balance Update: $500 Balance!” Kudos to you Green Panda!

Are you really cutting all of your unnecessary expenses? No Debt Plan wants us to be ruthless. “Cut the Crap and Check Your Monthly Budget Commitments” poetically reminds us that, when we are in debt, nothing is sacred.


by Scott Cron

"Two are better than one; because they have a good reward for their labor. For if they fall, the one will lift up his fellow: but woe to him that is alone when he falleth; for he hath not another to help him up." --Ecclesiastes

Raising Money

Surfer Sam takes an in-depth look at reverse mortgages in, “A Reverse Mortgage Pays You Cash and Let’s You Keep Your Home.” I find the reverse mortgage to be a scary concept and hope anyone contemplating it will do a lot of research!

Payday Loans Review writes about something called the Salary Advance Loan Program, which was designed to help serial payday loan users, in “A Low Cost Payday Loan Alternative”. Clearly it would be better not to need any sort of advance on your salary but, if you must, perhaps this would be a slightly better alternative.


(me and some of my friends!)

"Friendship makes prosperity more brilliant, and lightens adversity by dividing and sharing it." - Cicero

Credit Cards

With so many people defaulting on their credit cards, Debt Reduction Formula explains, “Why the Best Borrowers Are Paying the Price”. Those of us who pay are subsidizing those who do not.

Apply 4 Credit reminds us of all the steps NOT to take when trying to deal with credit card problems in, “Bad Credit: Stop the Application”.

Credit card shopping? “Chase Platinum Credit Card”, is a review of Chase’s 0% interest card offered by Credit Card Offers IQ.

The Credit Toolbox reviews the “Basics of Snowballing”. Whether you chose lower balance or higher interest cards to pay off first, the debt snowball is an effective way to get your credit card debt under control.

Have you heard about credit card companies lowering people’s credit limits based on where they shop? The Sun’s Financial Diary reports on this trend with, “Where You Shop Could Hurt Your Credit Score and Credit Limits’. I’m afraid this sort of “profiling” is going to get more common as the economy stays tight.

Personal Finance Analyst suggests you pay your “bad” debt before you save. He’s basically working on the principal that paying high interest debt gives you a better return on your money than saving in a low interest savings account. “Pay Yourself Second, Pay Your Debts First”, explains the exceptions to his rule. Personally I think it’s important to be in the habit of savings, even if you only save a small amount.



"In the sweetness of friendship let there be laughter, and sharing of pleasures." Kahil Gibran

Other

(Editor's Pick) Although a stimulus check doesn’t seem to be part of the package, if we got a big one, what would you do with it? Money Blue Book muses on the value of just such a payout in, “Second Stimulus Check for Obama 2009 Economic Stimulus Package?”.

How To Sell Your Own Home suggests not using a realtor when you, “Sell Your Own Home Despite The Lousy Economy”. I’m not sure it’s the route I’d take but, if it works, you’d certainly save money on the realtor’s commission.

Are you familiar with the merchant cash advance system? It’s sort of like a payday loan for merchants. In, “Merchant Cash Advance”, Merchant Cash Advance Guide explains what it’s all about.

“Are You One Of the Lucky Ones With a Tax Refund Coming”? Destroy Debt wants you to have a plan for how to use it. As an aside, I would recommend that you adjust your deductions so you are paying fewer taxes next year. No reason to give Uncle Sam an interest free loan!

Manely Montana, like a lot of people, is worrying about April 15th. “The Tax Woman Cometh”, lists several links where you can find some help. Too stressed? She includes a recipe for some fried potatoes. Nothing like a little comfort food when under duress!

A few years ago My Dollar Plan helped her brother-in-law get out of debt. In Part Two of “Gettin’ Out of Debt” she examines rebuilding bad credit.

Ask Mr. Credit Card recently interviewed someone he refers to as a credit card “insider”. Part Two of that interview appears in, “Interview with an Insider, Part 2”.

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