Everything Counts! Your Personal Guide to Debt-Free Living

Based on that, people might identify with having student loans, having a high debt balance, or having a sub-six figure income. Use the limited characters wisely. Your profile only allows characters, so make them count! Be creative, but make sure your meaning is easily identifiable. Switch to a business account if you want detailed data. You can choose from several business types that will show up under your name — mine is Personal Blog. Your account will gain more traction if you narrow in on specific and related content. For example, an account focused on debt repayment, minimalism, and personal finance will usually get more attention than an account focused on debt repayment, weight loss, acrylic painting, dystopian fiction, foreign politics, and the care of rare exotic plants.

This is a fictional account. Any resemblance to an actual account is purely coincidental. Trying to do too much or reach too many people can dilute your message. One of the easiest tools to share links is Linktree. I personally love to follow a lot of people, mostly those who are posting about paying down their debt or saving. You may want to make your feed more curated and only follow a few accounts, which is totally fine. There are so many fantastic accounts, but here are just a few of my faves: The main advantage of building followers on Instagram is that you have the opportunity to interact with more people.

More followers means more comments and a greater likelihood that your posts will be seen. There is one number milestone in particular that you might want to aim for: Ticking over from 9, to 10k is pretty surreal! Even better than the milestone, at 10k you can post links in your stories! Always remember to have patience.

Instagram ebbs and flows. Some days you might go down a few followers, other days you might go up a hundred. When most people think of Instagram, the image conjured is usually a collage of food and nature photos captioned with inspiring quotes from people who are dead. I think Instagram can actually be much more versatile than that! How can a photo-based app be used to discuss personal finance? Expand your definition of a photo. This could mean a photo of a mountain, sure, but it could also mean a chart or screenshot or even stand alone text.

Check out these examples. I made all of these graphics using Canva , which is an awesome resource. Yes, the debtfreecommunity has memes! You can find more of mine at debtstorichesmemes. The title of Best Debt Free Memes is hotly contested, but here are a few of the contenders besides the clear winner which is obviously me: Inspirational quotes are definitely Instagram territory, but why banish them to the captions? I share my own thoughts, quotes from other accounts, and even screenshots from Twitter as images.

Yes, I post screenshots of tweets on Instagram. I also share a lot of news stories and research studies about debt, behavioural economics, psychology, and money. These posts often lead to lots of great discussion in the comments. Make sure the title and website are easily readable so that people can search for the original source. I share quite a few blog posts this way too. A story is a photo or video that disappears after 24 hours. To add to your own story, click the Home button and long press on your own profile photo.

Think of how great life could be if you had fewer bills. Rather than working a or hour week, you might get by working only 20 or 30 hours a week. With fewer financial pressures, you can quit a high-stress job and find satisfying work, although you might earn less. Even if you know the importance of early retirement planning, debt can limit how much you stash for the future. Eliminating needless debt and reducing monthly expenses frees up disposable cash, allowing you to grow your retirement account faster. Getting By in the New Economy. This is money that can be used for an emergency, home improvements, investments, or a good time.

You can take a much-needed and deserved; do you, boo! It is easier to accumulate new debt when I already have debt. Progressive, for example, could be a good option for comparing auto insurance rates. Regarding life insurance, if you have a whole life insurance policy, you are almost certainly paying too much. The purpose of life insurance is to make sure that people who depend on you can pay for their needs if you die.

Life insurance is not designed to be a way to save for retirement or to give your children an inheritance. That means term life insurance is almost always the best option. Student loans There are a few things you can do to change the amount you pay on your student loans. Look into getting on an income-driven repayment plan, which will match the amount you pay to how much you make. You can also refinance your student loans with a private lender if you have a relatively high interest rate. If you have multiple student loans with different interest rates, it may be possible to combine them into one federal or private student loan.

On the other hand, you may only consolidate federal student loans with a federal Direct Consolidation Loan, and the rate you get will be the weighted average of the loans you consolidate. Further, the Department of Education does not offer refinancing. High rates could make it harder to get out of debt.

In these cases, you may consider refinancing your debt or taking out a debt consolidation loan. Both refinancing and consolidating debt could help you get a lower interest rate and other more favorable terms. Consolidating debt has the added benefit of combining multiple debts into one. LendingTree, which owns MagnifyMoney, offers a debt consolidation loan tool you could use to explore your options for debt consolidation.

Still, the tool could help you see what rates and terms you qualify for from reputable lenders.

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This last tip may be the hardest of the bunch: Many people change their spending habits in minor ways or only temporarily and then expect their debt problems to resolve. Despite the reams of information available out there to help people deal with their finances — including this post — millions of people are still in financial trouble. Obviously getting out of debt takes more than information; the mindset shift about how to approach spending is the missing ingredient for many. Holly Johnson is an award-winning writer who is obsessed with frugality, budgeting, and travel.

With wage garnishment, you are forced to repay outstanding bills, back taxes or unpaid student loans out of your paycheck whether you want to or not. While this collection method may seem unfair, it can take quite a while for your debts to fall so far into default that a creditor seeks a judgment against you and begins garnishing your wages. For the most part, wage garnishment only happens when you refuse to deal with your debts and do not take steps to prevent wage garnishment before it starts.

While nearly any debt can result in wage garnishment, creditors of some types more commonly use the method. Here are the main steps involved in most wage garnishment cases. Depending on the debt you have, you will likely receive letters and phone calls about your delinquent debt. A debt collector decides to sue you. If they win, the court could award a judgment against you or allow you time to appeal. The creditor works directly with your employer to garnish your wages to the full extent of the law.

The funds you owe will be deducted from your paycheck before you receive it until your debt is paid off. The federal Consumer Credit Protection Act sets limits on the amount of money that debt collectors can collect from your wages and implements several more rules that protect consumers from some of the consequences of wage garnishment. For starters, your employer cannot fire you for having your wages garnished the first time. The law also sets the standard for how much of your wages can be garnished.

In most cases, this is based on your disposable earnings, defined as the amount of money you have left after legally required deductions are covered. These deductions include federal and state taxes, payments for Social Security, Medicare and unemployment insurance taxes, and contributions to state employee retirement systems required by law. Deductions often paid through payroll such as health insurance premiums, union dues and charitable contributions are not deducted from earnings when calculating disposable earnings. When consumers get behind on their credit card bills and other unsecured debts , a long and drawn-out process usually takes place before wage garnishment is even considered.

You stop making payments on your bills. Once your bills are late, you will begin receiving late notices in the mail as companies try to collect from you. Once your debt is days in default, the creditor will either hire a debt collection agency to collect on its behalf or sell the debt altogether to minimize its losses. The debt collector will also try to collect from you by calling you on the phone and sending you letters.

This judgment is a formal decision by the court that confirms you owe the creditor a set amount of money. The creditor has the right to enforce that judgment by contacting your employer and beginning a garnishment of your wages. Most people who owe credit card debt have gone through a long and stressful collections process before the creditor files a lawsuit and pursues wage garnishment, according to consumer protection lawyer Jay S. Fleischman said this is part of the reason that wage garnishment for credit card debt and other unsecured debts is so common.

When it comes to limits on wage garnishment for unsecured debts, the Consumer Credit Protection Act applies. This means that, for any given week of work, your wages can be garnished by the lesser of:. Texas, Pennsylvania, North Carolina and South Carolina only allow wage garnishment for taxes, child support, federal student loans, and court-ordered fines and restitution. Wage garnishment to repay federal student loans is also common. This is mostly because the U. Department of Education has a mechanism in place that starts wage garnishment without a court order, Fleischman said. You must be given a day advance notice of an opportunity for a hearing, but other than that, the process is automatic.

While your federal student loans become delinquent as soon as you miss a payment, your loan falls into default once it has been delinquent for at least days. At this point, you will become ineligible for federal student aid and your default will be reported to the three credit reporting agencies. You could also be prohibited from buying and selling real estate, and you could be taken to court and charged collection costs and other fees. Once in default, you will receive a letter from the Department of Education that gives you 30 days to resolve the default or begin repaying your loan.

If you do want to get your federal student loans out of default , you may be able to do so via a process known as loan rehabilitation. Under this agreement, you must contact your loan servicer and agree to make at least nine affordable, consecutive payments within 20 days of their due date over a month period. Once you have met the terms of the agreement, your loans are no longer in default. But you will receive the following notices in the mail before wage garnishment and other legal processes begin:.

If you opt to ask for a hearing, you can dispute your back taxes or ask the IRS for a payment plan. Fortunately, the IRS does offer short-term and long-term repayment plans that can help you catch up on your taxes while avoiding wage garnishment. The amount of wages it can collect from your paycheck depends on your filing status and how many dependents you have. Either way, wage garnishment limits are very high. Federal law allows much higher limits for wage garnishment in these categories.

But keep in mind that some states set lower limits on wage garnishment for child and spousal support. Like many types of debt, wage garnishment for spousal and child support is determined by court order. The claimant will need to file a case with family court in their state to receive a judgment.

An Insider Guide To The Instagram Debt Free Community

Once the judgment is handed down, wage garnishment is set up through the employer. When it comes to getting out of wage garnishment, an ounce of prevention is worth a pound of cure. Plus, most of the avenues to get around wage garnishment are not quite ethical. You could also quit working altogether to halt wage garnishment. Of course, Tayne said these are poor solutions when it comes to overcoming wage garnishment. Not only will you continue owing the debts in question, but you will suffer financially as well.

Another way to get out of wage garnishment is to try to resolve the debt with the creditor directly, Tayne said. Pick up the phone and call your creditors to see if a payment plan can be worked out. Of course, this strategy works best if you negotiate your debts shortly after you default instead of later in the process. You can also file bankruptcy to stop wage garnishment — at least for a while. When you file for bankruptcy, an automatic stay comes into effect that prevents most creditors from being able to continue involuntary collections activities against you.

Depending on the type of bankruptcy you file , you may be able to discharge your debts completely or reorganize your debts and pay them off over time. You might need to find ways to supplement your incom e, Tayne said. You could also pick up a part-time job or a side hustle to make ends meet. Having your wage garnished might also be a sign to approach your finances in a different way.

Instead of trying to avoid bills and liabilities, you could try to focus on finding ways to pay them, Fleischman said. You could try cutting your cable television package, finding a cheaper apartment or cooking at home instead of dining out. Holly Johnson is a writer at MagnifyMoney. You can email Holly here. You can see more of her work at https: For homeowners in need of some financial flexibility, a personal loan or a home equity loan can provide extra cash for financing an education, dealing with an unexpected emergency , or making home improvements. Personal loans and home equity loans offer different options for customers who need access to a larger amount of cash than they have on hand.

While the end result of a successful application is the same ready access to funds in a lump-sum payment , the process and the finer details are considerably different. The primary difference between a personal loan and a home equity loan is that personal loans do not typically require collateral, whereas a home equity loan does. You may have heard lenders call this type of financing a signature loan or unsecured loan because in these types of transactions, your word is your bond via a legally-binding contract, of course.

Home equity loans are based on the amount of equity the difference between what you owe and the value of your property you have in your house. There are a few other differences regarding how the loan is structured and the loan cost, which is detailed in the chart below. In addition to a loan origination fee, borrowers may have to pay an appraisal fee, title report fee and notary fee. The amount is based on the equity in your home. When you take out a personal loan, the lender offers a lump-sum cash payment. Most personal loans can be used for anything you want.

Talk with your lender to find out if they have specific procedures for handling this type of personal loan. Personal loans are widely available. It is imperative that you take your time doing research. If you want the best rates, you should work with a trusted lender. Many banks, credit unions and credit card companies even offer an online application process, so you can take advantage of the convenience of an online application while saving money. Interest rates vary from lender to lender, but they also vary from state to state.

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State usury laws dictate the maximum interest rates on various loan types, but each state offers different exemptions. For this reason, make sure you take the time to read the details of any financial agreement you are prepared to sign. According to the Federal Reserve, personal loan interest rates averaged Your credit score, loan amount, home state and credit history could affect those numbers.

Unsecured personal loans are a little harder to get than other types of loans such as a title loan or a home equity loan because the lender is allowing you to borrow money based solely on the information they get about you.

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For true personal loans, expect loan terms up to five years. Personal loans are also fixed rate, which means your interest rate and your payment will stay the same throughout the life of the loan. Make sure to talk to your lender about their specific requirements before moving forward. The application process is fairly straightforward.

Depending on your lender and the type of loan you are seeking, you could have access to the money in as little as 24 hours, though some loans could take up to a week. A home equity loan operates differently than a personal loan because the lender looks at how much equity you have in your property. Then, they do a little number magic and offer a loan amount based on the loan-to-value rate. One of the biggest benefits of a home equity loan is that it can provide access to a large sum of money.

If you run up against a major emergency, access to this type of money could very valuable. To qualify for a home equity loan there are two major requirements:. Your lender will check your payment history and some other financial information as well. Documents you may be required to provide include:. A major drawback for this type of loan is that you are using your home as collateral. That means if you are unable to make your payments, you could lose your house.

Another risk is that your home could drop in value, putting you underwater on your property. Home equity loans may offer lower interest rates because you are putting your home up as collateral, there is less risk for the lender , but they often come with closing costs and loan origination fees, which can eat into your borrowing power. A home equity loan provides a lump-sum payment like a personal loan.

Home equity loans tend to have slightly longer terms than personal loans between five and 15 years. Be aware that a home equity loan and a home equity line of credit are similar, but not the same, so make sure you know which one you are applying for if you decide to move forward. Some fees you may see when applying for a home equity loan include an appraisal fee lenders use an appraiser for a more accurate home value estimate. Many lenders charge an origination fee, but some will waive this charge. Money from a home equity loan can be used for any purpose from medical expenses to home repairs.

However, recent tax changes made the tax incentives on these types of loans a little less attractive for borrowers. The new rules stipulate that in order to qualify for tax deductions, the money must be used to substantially improve a property. Further, since tax deductions increased, you may not even need to itemize your deductions. A home equity loan will take longer than a personal loan typically two to four weeks. The timeline is longer because the loan process is more complex.

Since this type of loan puts your house at risk, make sure to do the proper research and really study your finances to determine if this type of loan works for you. The tax restrictions only apply to funds used to make significant improvements on the home. There are benefits and risks to both a personal loan and a home equity loan. For borrowers who have a lot of equity in their home and know they can make the loan payments in addition to their mortgage payments, a home equity loan offers lower interest rates, which could mean lower payments and a lower loan cost over time.

Angela Brown is a writer at MagnifyMoney. You can email Angela here. Marianne Hayes Marianne Hayes is a longtime freelance writer and content marketing specialist. What are the benefits of being debt-free? A debt-free life is totally doable. Debt Relief That Works.

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What is Accredited Debt Relief? Highlights When they launched: The company can help you consolidate your debts, get on a debt management plan, settle your debts or file for bankruptcy.

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What makes it unique: Accredited Debt Relief is a referral service. How long does the program take? Is Accredited Debt Relief safe to use? How do I sign up for Accredited Debt Relief? What to expect after signing up with Accredited Debt Relief Alternative methods to pay down debt. To qualify for a service through Accredited Debt Relief, you must be: At least 18 A legal resident of the United States Eligibility for a specific program can vary depending on the program, service provider, type of debt you have and where you live.

It may be able to refer you to partners that offer debt consolidation loans in other states as well. What are the benefits and risks of Accredited Debt Relief Because Accredited Debt Relief can help you determine which program is best for your circumstances, it may be less risky than working with a debt relief company that only offers one service. Here are a few general benefits and risks to working with Accredited Debt Relief or trying one of the programs its partners offer: How much does Accredited Debt Relief cost?

Your timeline can also depend on which program is best for your circumstances. It may be best to skip this step as you can check and monitor your credit for free elsewhere. What to expect after signing up with Accredited Debt Relief The first step after signing up is to speak with a representative from Accredited Debt Relief. If you called Accredited Debt Relief, you may be connected with a representative right away.

If you signed up online, a representative may call you to discuss your financial situation. Jamie Friedlander Jamie Friedlander is a freelance writer and editor who covers personal finance and entrepreneurship, among other topics. One of these debt relief companies is Pacific Debt. What is Pacific Debt? Highlights When it launched: Focused on getting consumers out of debt as quickly as possible. Ranked one of the best debt settlement companies in by U. How much does Pacific Debt cost? Is Pacific Debt safe to use? How do I sign up for Pacific Debt?

What to expect after signing up for Pacific Debt Alternative methods to pay down debt. Credit card debt Medical bills Unsecured loans Personal loans Retail debt Debt from repossession Accounts in collections Note that private student loan debt is excluded. To work with Pacific Debt, you must meet the following requirements: You struggle to maintain minimum payments on your accounts. You live in one of the 28 states including the District of Columbia that Pacific Debt does business in, which includes: Your credit score will likely take a significant hit.

You could be debt free in less than five years. Overall, Pacific Debt appears to be very safe to use for those looking to settle their debt. Request a free consultation either online or on the phone by calling If you think Pacific Debt is the right fit for you, you can enroll in the program with no upfront cost. What to expect after signing up for Pacific Debt Upon enrolling in the program, you will be connected with a personal account manager who will be your primary contact throughout the negotiation process.

This initial contact typically happens in about 90 days. You will stop making all of your minimum monthly payments on your delinquent accounts. Your personal account manager — also referred to by Pacific Debt as a debt counselor — will analyze your debt, monthly expenses and income. This counselor will then help you figure out a payment plan that will work for you.

Now, the negotiation begins. Your counselor will negotiate on your behalf. Each time your counselor negotiates a bill, he or she will get in touch with you. You can then choose whether to accept the settlement. Once all of your debt is resolved, you will receive copies of all of your settlements. Hannah Rounds Hannah Rounds is a freelance writer who covers consumer finance, investing, economics, health and fitness. What is Consolidated Credit? Consolidated Credit has helped 6. In addition to its other services, Consolidated Credit offers housing counseling.

This service could help you protect your home during financial trouble. How much does Consolidated Credit cost? Is Consolidated Credit safe to use? How do I sign up for Consolidated Credit? What to expect after signing up for Consolidated Credit Alternative methods to pay down debt. Services offered Credit counseling, debt management plans, homebuyer counseling, reverse mortgage counseling, corporate financial wellness. Initial setup fees Initial setup fees vary by state, but will be similar to your monthly fees.

Cancellation fees No cancellation fees. Types of debt accepted- debt management plans Unsecured debts credit cards, most personal loans, medical debts less than 1 year old. Service limitations- debt management plans Once you enroll in a debt management plan, you must make the payments as agreed. Ratings A-plus rating with the BBB. Free tools and resources A consultation with a credit counselor at Consolidated Credit is free. Consolidated Credit offers credit counseling services to people in the U. If you live in the U.

They will also help you review options for DIY debt consolidation. Benefits Risks Not for profit company Credit cards are frozen during debt management plan. Free initial consultation Cannot take out new credit cards during repayment. Consider a variety of debt payoff options. Some complaints about customer service Debt management plan reduces interest rates and fees. Must make timely monthly payments. Highly rated customer service. People looking for a free a counseling session from Consolidated Credit can reach out to the company online or via the phone. People who want to talk with a credit counselor right away can call Consolidated Credit at During your first credit counseling session, a certified personal finance counselor will review your debts, your budget, your credit score and your options for debt relief.

The counselor will help you understand whether your debt relief options. If the counselor does not think a do-it-yourself option for debt relief will work for you, they may recommend a debt management plan. The counselor will disclose the fees associated with the plan, and you can choose whether to enroll in it. During the payoff period, you will not be able to use your credit cards. You also cannot open any new credit card accounts. In most cases, you should be able to apply for an auto loan or mortgage during the payoff period. Anyone who chooses to enroll in a debt management plan will stop making payments to their creditors, and start making a monthly payment to Consolidated Credit.

Consolidated Credit will distribute the payment among your creditors. After 36 to 60 monthly payments less if you can add extra money to your payments , your debt will be paid off. Katherine Gustafson Katherine Gustafson is a freelance writer in Portland, Oregon, specializing in content marketing, thought leadership, and grant writing for mission-driven changemakers, disruptive innovators, and dynamic nonprofits. What is InCharge Debt Solutions?

It has given away more than 10, financial literacy books and hosted more than 1, free financial literacy community workshops. How much does InCharge Debt Solutions cost? Is InCharge Debt Solutions safe to use? Breakdown of InCharge Debt Solutions While the organization offers a range of services, the rubber meets the road in its debt management plans that help customers get out of debt within five years.

The types of debt that are eligible for debt management include: Unsecured debt such as credit cards and personal loans Student loans, which are handled by a separate department. This table lays out the average and the maximum that participants in the program pay: These rights are as directly stated on its website: Confidential, knowledgeable, professional and courteous service.

Non-judgmental counseling by trained and experienced certified counselors. Prompt response to questions, requests and concerns. Statements of funds received from you and payments made to your creditors. Access to a library of online tools and educational materials. Discontinue your relationship with InCharge at any time, for any reason. Nick Clements Nick Clements has worked in consumer banking for nearly 15 years and is the co-founder of MagnifyMoney. Interest rate is not known until you apply. Transparency Score Interest is waived during the balance transfer period, no foreign transaction fees and no late fee for your first late payment The range of the purchase interest rate based on your credit history.

There is a cash advance fee. Complete your balance transfer as quickly as possible for maximum savings. Very few things in life are free. You can find a full list of no fee balance transfers here. For transfers requested within 60 days of account opening. In addition to the intro periods, you can benefit from a rewards program tailored to U.

This card presents cardholders with the unique opportunity to transfer a balance and make a large purchase during the intro period, all the while earning rewards on new purchases. Transparency Score Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.

There are late payment and cash advance fees. After that, a Long low rate balance transfer card Unify Financial Credit Union — 6. There are late payment fees. Long low rate balance transfer card SunTrust Prime Rewards — 4. The range of the purchase interest rate is based on your credit history: Learn more Checklist before you transfer.

Always pay on time. Get the transfer done within 60 days Most balance transfer offers are from the date you open your account, not the date you complete the transfer. Savings calculator — which card is best? Balance transfer or a loan? From my spouse, partner or child? Can I transfer debt from store cards? When am I better off not doing a balance transfer and just paying off my debt? What happens if I still have a balance at the end of the promotional period? Do I get a big interest charge? Is this a trap? How do I complete a balance transfer?

What happens if I miss a payment? Can I transfer balances to another card with the same bank? How can I use a balance transfer to pay off non credit card debt? Can I reverse a balance transfer? Can I transfer a balance more than once? Can I transfer a balance to more than one card? Is there a penalty for paying off balance early?

What is more important: Taylor Gordon Taylor K. What is Freedom Debt Relief? It resolves an average 43, accounts each month. Freedom Debt Relief could resolve issues with debt between 24 and 48 months. How much does Freedom Debt Relief cost?

Why should I join?

Is Freedom Debt Relief safe to use? How do I sign up for Freedom Debt Relief? What to expect after signing up with Freedom Debt Relief Alternative methods to pay down debt. Services offered Debt settlements: Soft or hard credit pull required A soft pull is required.