I have an 18 week training program that I’ve used for all of my marathon training. It includes three short runs and one long run a week. Each week the mileage slowly builds so that eventually I’m running 16, 18, and even 20 miles at a time. This plan is just like having a budget. By sticking to my running schedule I’ll eventually get to my goal, but without that plan I would have a tough time being successful. Without a budget and a financial plan, getting out of debt is nearly impossible.

People Will Try to Talk You Out of It

Lazy people don’t like to be reminded that they’re lazy. So when you happen to tell certain people you are training for a marathon they’ll try to make you feel like you’re crazy for wanting to accomplish such a goal. Broke people are the same way. They don’t like to be reminded that they are broke so when they hear that you are trying to get out of debt they’ll attempt to throw you off course.

Having a Support Team Helps

I trained for my first marathon by myself. I completed it in about five and a half hours. My second marathon I had a running partner and I improved my time by 30 minutes. Having a support team helps when it comes to training for a marathon and when it comes to getting out of debt. They’ll hold you accountable and make sure you’re doing what needs to be done to reach your goal.

Things Will Try to Throw You Off Course

A month before race day of my last marathon I got shin splints. It’s excruciatingly painful and feels like your bone is splitting apart. I made adjustments and switched my training to a low impact elliptical machine. This allowed me to continue getting cardio while helping my shins to heal. On race day I was fine. Similarly, when you’re trying to get out of debt, things will come along that will try to throw you off course: a broken water heater, old tires on your car, a relative’s wedding in another state. Just find ways to work around it and solve the problem so that you can still achieve your goal.

It Requires Commitment

If running a marathon were easy everyone would do it. Getting out of debt is the same. It requires commitment. You’ll have to make sacrifices to achieve your goal and it will take plenty of endurance. But the experience of crossing the finish line makes it all worth it.

Why Getting Out of Debt is Like Training for a Marathon is a post from: Out of Debt - Christian Finances and Debt Help

In 2008, just two years ago, the national debt had reached $9 trillion. In two years the national debt increased by nearly 50 percent– by $4 trillion. In just six months the national debt bumped up from $12 trillion to $13 trillion. Soon the minimum payments on this debt will be more than the revenue collected by the government. Just like running a household, if you continue spending more than you’re making eventually you’ll end up in financial ruin. And some believe that’s where America is heading.

Currently there is no requirement that the government needs to work on a balanced budget which means it continues to grow as long as spending surpasses income sources from taxes and other revenue. Experts believe this will be a season of change as Americans become more upset about politicians’ out of control spending.

What do you think? Are you upset with the way America is spending money?

The Shocking Growth of the National Debt is a post from: Out of Debt - Christian Finances and Debt Help

OODC: How did you get started blogging and tweeting?
@FinanciallyPoor: 3-4 years ago I bought the domain and hosting for a personal finance community website. It turned out to be a lot harder than I anticipated and I didn’t put in the time to make it succeed.

Fast forward to about 3 months ago I got the inkling to start another personal finance site. Between the last site and this site I’ve been reading about blogging and following all of the other personal finance blogs, so I was well prepared this time. But I kept talking myself out of it until one day I just jumped in and registered a domain and signed up for a hosting plan. I just said to myself “I don’t want to waste the money so I might as well get this baby going.” After that I got into twitter to network and talk with people that read my blog. I’m a really big fan of twitter, there’s just so many people to meet and connect with, it’s just so amazing. I really recommend it for everyone out there.

OODC:You say that you spent most of your adult life living paycheck to paycheck, which is how most people live. What would you say to someone to convince them to change from that mindset?
@FinanciallyPoor:Living paycheck to paycheck really limits your life. I never had enough money to go on vacation any where other than the state I live in. I could never take a date to one of the many theme parks around here because I didn’t have the money. Sure I could charge it, but I knew that would lead to a life full of stress and was always warned about those dangers. I’m really glad I listened to that advice, although I did rack up a few grand in credit card debt over my spending years, I know it could have been worse. I’m reminded every day in my job how bad it could really get if you don’t watch your spending. I never want money to be the limiting factor to what I’m able to do in life.

OODC:You work as a bankruptcy counselor. Does anything ever surprise you anymore when it comes to how people handle money?
@FinanciallyPoor:Not really, but it does surprise me when I hear people that really don’t care about what’s happening to them, or are hoping that something will happen (like get a job, get a mortgage modification) instead of changing their life around to make something happen.

It really bothers me when people, who can’t afford their home, decide to live in misery just to keep it. They will struggle through life just to keep something that a developer threw up in a month. I know after the bankruptcy is over they are going to have the same problem and their house is going to be foreclosed on anyway, so it irks me.

OODC:What do you hope people gain from reading your blog?
@FinanciallyPoor:I hope people really look inside themselves and realize they are the masters of their life. They control what they do, how they react, and all of their emotions. Once they realize this they can have a better financial life as well as a better life over all.

OODC:Who are some of your favorite money tweeters?
@FinanciallyPoor:@RainyDaySaver, @centsiblelife, @moneycrush, @financialsamura, @GrlRedBalloon, @deliverawaydebt

Thanks again to @FinanciallyPoor for being part of this week’s Twitter Tuesday Profile! Want to be considered for an upcoming profile? Just tweet me!

Twitter Tuesday Profile: @FinanciallyPoor is a post from: Out of Debt - Christian Finances and Debt Help

OODC: How did you get started blogging and tweeting?
@Singleguymoney: I used to read several other personal finance blogs that helped me make some major decisions with my personal finances so I decided to start a blog to help other people get out of debt. The first personal finance blog I found was pfblog.com. I thought it was pretty cool how someone was so open about their personal finances.

OODC: How do finances for a single guy differ from, let’s say, a married couple?
@Singleguymoney:One of the biggest things I’ve noticed is that most personal finance blogs are written by married individuals with children and most times, the information they are giving does not apply to a single person. Single folks without kids don’t really care about getting the best price on diapers, saving for college or paying for daycare. As a single person, handling my finances may be a little bit easier. I don’t have double the income but I also don’t have double expenses. I don’t have to consult with anyone on making a purchase or worrying about a spouse that likes to spend lots of money in the mall.

OODC: You’ve managed to pay off a lot of debt! What’s your plan for paying off the rest?
@Singleguymoney:I have to admit that my debt reduction progress has slowed since I got rid of all of my credit card debt. The remaining debt I have (mortgages, student loans) carry interest rates that are a lot lower than I was paying on my credit card debt. Right now, I’m paying a little bit extra towards the principal while I focus on building my cash reserves. I took a big chunk of money out of my savings to pay off my credit card debt. Once my cash reserves are back to where I want them to be, I’ll focus on making extra payments towards my remaining debt.

OODC: What do you hope people gain from reading your blog?
@Singleguymoney:I hope that someone who’s a little unsure of how to handle their personal finances can find something in my blog to help them make a better financial decision in the future.

OODC: Who are some of your favorite money tweeters?
@Singleguymoney:Some of my favorite money tweeters are: @budgetsaresexy, @singlema, @punchdebt, @mrsmicah, @freefrombroke.

Thanks again to @SingleGuyMoney for being part of this week’s Twitter Tuesday Profile. Want to be considered for an upcoming profile? Just tweet me!

Twitter Tuesday Profile: @SingleGuyMoney is a post from: Out of Debt - Christian Finances and Debt Help

OODC: How did you get started blogging and tweeting?
@MrsMicah: I’ve been blogging pretty much since there were blogs, I started around 2000. So when, after I got married, I started to approach a new chapter of my life and a whole lot of financial responsibility it just seemed natural to start a blog. I also began reading other personal finance and getting out of debt blogs, which I think helped me keep from having a breakdown.

I started tweeting around the time it caught on in the pf blogging community, before it was as mainstream as it is now. I’ve found it a great way to get to know people beyond what we share on our blogs. It’s introduced me to people I’ve met in real life as well as people who are now my good friends online.

OODC: How did your husband’s $100,000 in school loans impact your marriage?
@MrsMicah:It’s meant that we’ve needed to learn to work as a financial team. Otherwise I might have drifted into generally managing our finances but we wouldn’t have had to be as aware of them. I’m still the one who does most of the work, but we’ve had to discuss spending, etc, so that we can live off just my income and put his toward loan repayment.

I think I’d resent the whole thing a lot more if Micah weren’t so generally responsible with money. This wasn’t credit card debt & until we were married he lived in a crappy, tiny low-rent apartment (now we live in a nicer lowish-rent apartment) with a roommate and ate peanut butter sandwiches half the time. He knew he didn’t have money and he didn’t live like he did. I don’t think we would have gotten married if he was getting into this debt any other way because we wouldn’t have been compatible.

Sometimes I still feel stressed about our future, the years it’s going to take to pay it down and what we could be doing with the money. But I’d say that most of the time it has very little impact on our marriage other than the habits we’ve developed to keep spending down.

OODC: What’s your best advice for other people facing large amounts of debt?
@MrsMicah:Make a game plan that you can stick with. The plan will depend on how much debt you have, what other obligations you have, how much you earn, etc. Right now I’m just starting out in my career and Micah’s earning a very low salary while he teaches and finishes his doctorate.

So we decided to live on just my income, use his money for debt repayment, and then I took on additional consulting work for more debt repayment/now for saving up for my graduate school. It wouldn’t make sense for him to take a 2nd job right now since he needs to spend his free time finishing up his degree so that he can get a real job and earn a fuller salary.

The most important plan isn’t whether you get the debt paid off in 1 year or 5 or 8 as much as it’s that you can stick with your plan while being open to earning more and putting that toward it too. Don’t be so unreasonable that you burn yourself out. DO be willing to make sacrifices and delay gratification in anticipation of a debt-free future.

OODC: Who are some of your favorite money tweeters?
@MrsMicah:It’s hard to choose, different people are my favorites for different things. I’ll go with: @budgetsaresexy @flexo @brokeinthecity @centsiblelife and @deliverawaydebt.

Thanks to @MrsMicah for being part of this week’s Twitter Tuesday Profile. Want to be considered for an upcoming profile? Just tweet me!

Twitter Tuesday Profile: @mrsmicah is a post from: Out of Debt - Christian Finances and Debt Help

Dave Ramsey is obviously against any kind of debt– even in business. He believes that borrowed money magnifies mistakes and hurts or even destroys cash flow. According to Ramsey, 26 percent of the businesses started in 2009 were launched with no money. Thirty-four percent of businesses were started in 2009 with less than $5,000. However, half of small companies launched in 2009 used credit cards to finance the start of their business.

To avoid getting into debt when going into business Dave suggests renting everything from office space to equipment. He also suggests outsourcing certain tasks, buying used equipment and paying in cash. He says that often small business owners will make expensive purchases and rationalize them as needs for the business. This can ultimately cause the business to fail. An example he gave was a business owner who got a couple of jobs where a backhoe was needed. These jobs paid a few thousand dollars. Rather than continuing to rent the equipment the business owner financed new purchases that cost nearly $100,000. Then when backhoe work stopped, he had no way to pay for the equipment, which ultimately caused his business to fail.

Another great idea is to have retained earnings which is basically cash that is saved up for things like emergencies, investing or capitalizing on opportunities. Dave Ramsey suggests having 50 percent of your annual expenses in a money market type account. Ideally, if you keep your focus on serving in the marketplace and serving others you will be successful.

Next Lesson: Hiring the Right People for Your Team

The Dave Ramsey Way: Finding Financial Peace in your Business is a post from: Out of Debt - Christian Finances and Debt Help

OODC: How did you get started blogging and tweeting?

@TheyCallMeCheap: My mom bought me an internet marketing course from a guy she saw on a Christian program about 10 months ago. I can’t remember his name, but I thought his techniques were antiquated and useless. But I still found blogging interesting. So, I started writing about one of the few areas I know quite a bit about: personal finance.

Tweetin’ just comes with the territory. When you don’t have any one commenting on your blog, Twitter gives you an opportunity to engage in conversation with people who share similar interests.

OODC:You went from having $25,000 in debt and $54 in savings to being debt free with a $7,500 emergency fund in a year. Where did you get the inspiration to do that?

@TheyCallMeCheap:Dave Ramsey. I started listening to The Dave Ramsey Show Podcast on a daily basis in mid-January 2008. It was so inspirational to hear people call in to scream that they were debt free. If someone making an annual income of $50K with a spouse and three kids can pay off tens of thousands of dollars in debt in a couple years, it’s hard for a single professional like myself to justify doing anything less.

OODC:Even though you’re debt free, do you still live with extreme frugality? Why or why not?

@TheyCallMeCheap:Yes and no. I’ve loosened the purse strings a little bit. However, I still suffer from extreme fits of frugality. For instance, the other day I sewed the ear piece back onto a pair of prescription eyeglasses I’ve had since 2004.

I don’t easily part with money I’ve worked hard to earn. There’s no point in wasting it.

OODC:Who are some of your favorite money tweeters?

@TheyCallMeCheap:@brokeinthecity @RevancheGS @mrsmicah @ctreit

I actually appreciate that they don’t always tweet about money.

OODC:What’s your best piece of advice for others trying to get out of debt?

@TheyCallMeCheap:If you’ve practiced bad money habits the majority of your financial life, you’re not going to change over night. When you make a mistake, there will be plenty of people to judge you for failing TEMPORARILY. Don’t let them get under your skin. Eventually, you’ll get it right.

Special thanks to @theycallmecheap for being the focus of this week’s Twitter Tuesday Profile. Want to be considered for an upcoming profile? Just tweet me!

Twitter Tuesday Profile: @TheyCallMeCheap is a post from: Out of Debt - Christian Finances and Debt Help

Non Bank ATM Fees

You can pay an average of about $3.50 every time you have to use an out-of-network ATM, says Peter Pham, with Billshrink. According to Bankrate, Americans pay more than $4 billion in ATM fees per year. Pham offers this tip: take some time to search for a bank with a good ATM policy.

Credit Card Late Fees/Overdraft Fees

All of these fees can really add up, says Pham. Consider a card with an annual fee. A fee could save you thousands in interest rates. Also, try to cut back on the amount of cards that you have. Consolidate your debt into one or two cards, says the article. Watch out for “processing fees” as well.

Car Maintenance at the Dealership

I learned my lesson when I was young and didn’t know any better and continued to take my car to the dealership. Now, I ask around and find a reputable locally-owned garage. Almost $9,500 is the average amount spent by Americans to maintain their car each year. Those repairs can often be done by a local shop. And you’re helping out your fellow neighbor. Negotiating a job is also easier when you are at a mom-and-pop shop. Another tip from Pham: check out a local community college and see if they have an automotive technical program.

Pseudo Health Products

Watch out for fad health foods. Check the ingredients. They may not really be as healthy as you think and are often more expensive. Think about making some of your own healthy snacks, suggests Pham.

Cell Phone Plans

According to the article, 80 percent of us overpay on our plans. The biggest reason is people don’t really know how much they use texting, voice minutes and data. Many more people are getting family plans to help. Sit down and go through your cell phone bill. Look into a family plan, look at who you call the most and see which carrier they are with. Take advantage of the free phones they often offer with contracts and get rid of those services you really don’t use, says the article.

Five Things Americans Overpay For is a post from: Out of Debt - Christian Finances and Debt Help

No more retroactive rate increases. Now changes to your interest rate won’t affect previous purchases, says the article. Credit card companies can only increase your rate on new purchases. Here’s an example: if you’re paying the minimum due on $5,000 at an old rate of 10 percent instead of the higher one at 15 percent, you can save $541 in interest charges.

You now have options for over-limit buys. You can choose to let the purchases go through and pay a fee or the transactions will be declined. Before the act was put into place, you would just find out about the fee when your bill arrived.

Pricier balances get paid first. If you pay more than your minimum that is due, the rest goes toward the portion of your balance with the highest interest rate, according to the article.

Get used to more generous deadlines. Now, under the new act, any payment arriving by 5 p.m. on the due date is on time! Issuers also have to mail statements 21 days before the due date.

Say good-bye to universal-default clauses. Credit card companies can no longer increase your rate because of a late payment on say, your electric bill. If you have questions or concerns, call the card’s customer service number.

Good News for Credit Card Customers is a post from: Out of Debt - Christian Finances and Debt Help

* Someone leased a car only to end up owing a balloon payment at the end of the lease terms.
* Someone signed up for a service only to realize they couldn’t get out of it without paying way too much money.
* Someone used their credit cards and racked up big amounts of debt.
* Someone didn’t pay their taxes or a parking fine and ended up owing way more than they would have if they just paid right away.
* Someone gets stuck in a cycle of needing payday advance loans and ends up paying high interest rates because of it.
* Someone consistently pays lots of money to the bank in overdraft fees each month because they can’t get a handle on their finances.

Just about all of us have paid stupid tax at some point (or several times) in our lives. My biggest payment of stupid tax happened because I decided to dabble in the stock market. I had some extra cash and thought it would be a good investment. I put about $3000 into one single stock which tanked. I paid what I would call a hefty stupid tax to learn that someone who doesn’t follow stocks closely and doesn’t know much at all about the stock market should not invest thousands into a single stock on a whim. It’s pretty much like playing the lottery, only the ticket costs a lot more than $1.

Have you paid stupid tax?

Have You Ever Paid Stupid Tax? is a post from: Out of Debt - Christian Finances and Debt Help