PT Money » Debt Reduction

Getting a Loan to Pay Off Debt

PT — Mon, 09 Aug 2010 16:43:38 +0000

Should you get a loan to pay off debt? In most cases, no. Just because you can get a loan to pay off your debt, doesn’t mean you should. After all, are you really “paying it off” by using another loan? What you’re doing is delaying the inevitable and/or making the debt a bit less painful to bear (either because you lower the interest rate, payment, or lengthen the time you have to pay it off).

But I know there are circumstances where life happens and backs you into a corner, debt-wise. Whether it’s a job loss, or unexpected medical costs, life can send you in a tail spin and leave you with excessive credit card debt. Most of us have been there.

At this point you can choose to do a couple of different things. First, you need to make sure you stop the bleeding. Find a way to get more income, and/or drastically reduce your expenses to live within the means that you do have. If you don’t do those things then you’ll be right back here in a few months or years looking for another loan to help you get rid of credit card debt.

Should you get a loan to pay off debt?

Next, you can try and tackle this debt yourself by negotiating interest rates with credit cards, developing a debt reduction plan, and basically taking this debt on head first. Remember, there is no Obama credit card debt relief. Finally, like I said above, you can use a loan to help you delay or extend the debt pay off process. Here are some loans you could use.

Different Loans to Pay Off Debt

Home Equity Loan – If you own a home and have some equity (your home is worth more than you owe on it), you could tap into that equity and get a loan for the amount of your debt. Doing so will likely take a high-interest debt and reduce it to a lower interest rate. However, you are taking an unsecured debt and turning it into a secured debt. You are putting your home at risk because of some retail spending. Not a good move.

Peer to Peer Loan – Take the banks out of the equation. Borrow some money from on online lending service. Peer to peer lending is growing in popularity because of the lack of credit elsewhere, and because it makes sense for some people. If you use this type of loan, you’ll likely pay less interest over time, and you can extend your monthly payments to a more manageable level. Read more about the option of peer to peer lending.

Personal Loan – Some banks or credit unions will give you a personal loan if they can see consistent deposits in your checking account and a steady paycheck. These loans aren’t secured so there is no asset at risk except your checking account. You can likely reduce the amount of interest on your debts significantly by using a personal loan.

Life Insurance Loan – If you have a life insurance policy with a cash value portion, you can take a loan against those funds to help you pay for the debt. I’m not a fan of this option since it goes against the original goal of the money, to protect your spouse and children.

Debt Consolidation Loan – Take all your debt and put it on one payment plan. You have to be careful with these loans because the company who if performing the consolidation for you is in business to make money off of you. In most cases with a debt consolidation, you will pay more interest over the long term and it will take you much longer to pay off the debt. Finally, people who consolidate debts this way often find themselves in dangerous levels of debt again. In other words, they don’t address the route cause.

401K Loan – Similar to a life insurance loan, the 401K loan borrows money from a source where the original intent is something other than consolidating debt. For this reason, I’m not a fan of using a 401K loan to help you pay off debt. But these loans are pretty easy to make. Your 401K administrator isn’t concerned with what you use the money for. They will just loan you the money. And when you pay back the money, the minimal interest rate is actually paid to your 401K balance.

Balance Transfer – If you can get accepted, you might be able to complete a credit card debt balance transfer. You could do your own consolidation by taking all your outstanding balances and transferring the debt to one single credit card. In most cases, the new credit card will have a promotional 0% interest rate period and a 3% to 5% fee to make the transfer. I’ve made this move with success in the past, but it’s getting harder and harder to perform this move nowadays.

Have you ever taken out a loan to “pay off” debt? Were you better off after making the move?

photo by alancleaver_2000

Getting a Loan to Pay Off Debt is a post from: PT Money: Personal Finance by PT.

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Do You Know Your Rights Under the Fair Debt Collection Practices Act?

PT — Mon, 12 Jul 2010 15:54:08 +0000

A recent CNN Money article claims that complaints to the FTC regarding FDCPA violations were up 50% in 2009, and are looking to jump another 13% this year. It seems a lot of people aren’t paying their bills, and collections agencies are struggling to collect the debts in a legal way. They are resorting to these thug-like tactics. And you may not even have to owe any money to feel the brunt of their abusive methods.

I recently shared that I’d been confronted by a couple of repo thugs regarding my neighbors car repossession. They claimed to think that I was hiding my neighbor’s car in my garage. They were knocking on my door after 9pm, told me about my neighbors debt, accused me of a criminal act, and didn’t identify themselves. If car repossession companies fall within the restraints of the Fair Debt Collection Practices Act (FDCPA), then these chumps were major violators, as the 4 actions above are all illegal according to the Act.

Do you know your rights under the FDCPA? A quick visit to the FTC’s Debt Collection FAQ page and I learned the following:

Pretty much all types of debts except business debt are covered by the Act. This means that your credit card debt, car loan, and mortgage are all covered.

A debt collector may not contact you before 8am or after 9pm. And they may not contact you at your work.
A debt collector is generally not allowed to contact anyone else regarding your debt.
A debt collector cannot harass you. This means no threats, bad language, or repeatedly using the phone to annoy you.
A debt collector cannot make false statements like pretending to be a cop or claiming you’ve committed a crime.

If you think you’ve be victim to a FDCPA violation, you can fight back. File a complaint with your State’s Attorney General and with the FTC. You can also contact a FDCPA lawyer, sue the collection company, and if found to be in violation, they could be forced to pay you $1,000. Then you’d have to sick your own debt collection company on them.

Personal Finance Roundup

jim from Bargaineering has a nice, articulate piece on why market timing works, but can’t work for you. Well, unless you have millions to trade that is.

Mike from Oblivious Investor shares his advice for sole proprietor’s preparing for tax time. If you bring in side income I suggest you check it out.

SVB from The Digerati Life shares some new budgeting software options for wesabe.com users since they’re closing shop.

MD from Studenomics seems embarrassed to have to say it, but he lets you know how to live within your means.

Len Penzo shares the 6 most valuable grocery items known to man.

I shared a guest post over at PerkStreet about fixing up your rental. As someone who rented for 10 years before I bought a home, I’d say I’m an expert on this.

Finally, I shared a guest post at One Money Design about why your 401K may not be that great and I gave some tips to fix things.

From the carnivals… Festival of Frugality, Carnival of Personal Finance, Tax Carnival, Festival of Stocks, Carnival of Financial Planning
photo by Tweek

Do You Know Your Rights Under the Fair Debt Collection Practices Act? is a post from: PT Money: Personal Finance by PT.

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13 Tricks You Might Not Be Using to Help You Get Rid of Credit Card Debt

PT — Tue, 06 Jul 2010 16:14:22 +0000

When you’re deep in debt, you just want out. Here’s a nice list of ideas, a refresher if you will, to keep you headed in the right direction with your credit card debt reduction plan:

Cut Up Your Credit Cards – If you’re swearing off debt for good, consider cutting up the cards. Sometimes it’s the accumulation of more debt that keeps us from paying off the debt we have. This doesn’t mean you have to close down the accounts (which could harm your credit score), but it will make it harder to use a card at the register.
Put Your Cards on Ice – If you don’t want to cut your cards up, put them on ice. Literally put them in a cup of water and put them in the freezer. You’ll have them in an emergency, but you won’t be tempted to use them on a quick purchase.
Put a Note in Your Wallet – If that’s too impractical, then simply put a note in your wallet on your cards reminding you about your debt reduction goals. Be rude to yourself if you have to. Something like, “don’t do it, you idiot” would probably work on me.
Sell Your Junk – To speed up your credit card pay off schedule, bring in some extra cash by selling your stuff on Craigslist or eBay. Also, consider having a garage sale for even quicker cash.
Get a Second Job – If you don’t have junk to sell, then consider taking on a second job to really help you pay off those debts quick.
Post a Debt Payoff Schedule on the Fridge – Where your stomach is, there will your mind be also (or something like that). Hyper-focus on your payoff plan by putting it front and center.
Transfer Your High-Interest Balance – If your balances and interest rates are big enough, consider transferring your credit card balances to a card with a 0% promotional interest rate. You could also use a peer to peer lending site to do this. Be aware of transfer fees, which might negate any interest savings you experience. Also, be careful not to use this new card as an opportunity to spend more.
Listen to Dave Ramsey – Dave Ramsey will motivate you to pay off your debts. Period. He’s the man with the seven step plan that can really help you to kick your debt reduction plan in gear. He’s got a radio show and a daily podcast you can tap into.
Pay Off the High Interest Balance First – If you’re number cruncher, consider paying off your debts by tackling the card with the highest interest rate first. Then move to the next highest interest rate card. This will help you pay less in interest over time.
Pay Off the Smallest Balance First – If you need to be motivated by a quick win. Consider using the debt snowball approach. Build upon your small victories and destroy your credit card debt one at a time starting with the smallest.
Obsessively Track Your Spending – Are you obsessed with controlling your spending? Maybe you need this extra motivation to help you avoid future debt, and to provide extra room in your budget for fast debt reduction payoff. Track your spending with Mint, or consider a zero based budget.
Become a Freegan – Along those same lines, consider becoming some what of a freegan (a person who tries to use only free products and services). You don’t have to change your entire life forever, but it will surely help to get rid of debt if you can devote most of your extra income to debt reduction. Using free products and services only will help you do this.
Consider Getting Help – If you’re not a do it yourself kind of person, enlist the services of a service like DebtGoal to help you get rid of your credit card debt.

Have anymore tips or trick for getting rid of credit card debt?

13 Tricks You Might Not Be Using to Help You Get Rid of Credit Card Debt is a post from: PT Money: Personal Finance by PT.

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What is Peer to Peer Lending?

PT — Tue, 22 Jun 2010 16:41:40 +0000

Peer to peer lending is an alternative to traditional institutional lending. In peer lending, or social lending as it’s sometimes called, the banks and credit card companies are bypassed and a middle-man company manages loans from people to other people. Money is lent, money is borrowed, money is paid back. Simple. The idea is that the borrowing process will be more pleasant if banks are excluded. And money is more likely to be paid back if you know you are paying back individuals and not some faceless bank.

Before, when consumers need a loan, we typically turned to banks and credit card companies, traditional institutions, to help fill the need. If we were rejected for a loan going this route, we would turn to friends and family to help up out, either getting a direct loan from them, or getting a co-signer for a traditional loan. Or, we would just do without the loan.

How Peer to Peer Lending Works at Lending Club

Peer lending, thanks to the power of the Internet, makes it easier to get loans from other people. It’s the sophisticated way of bypassing the banks. Also, because so many people get involved, the risk to the lender can be greatly reduced, similar to how a mutual fund reduces the risk in the stock market.

Who Participates in Peer Lending?

You can get involved with peer to peer lending both as a borrower and a lender (investor). People borrow for all sorts of reasons (e.g. payoff debt, prop up their business, to pay for school, a wedding, a vacation). People lend (or invest) for one reason: to get a return on their money.

As a borrower, you will be pre-screened by the lending service and given a credit limit and interest rate at which you can borrow money. You then have access to the funds and a payment schedule to pay back the loan.

As a lender, you decide how much money you want to invest, build a portfolio of loans (small amounts spread across many loans), and sit back and rake in the returns. There is some risk involved though, so be smart about how much money you invest here. As an investor in social lending sites you should never lose site of the fact that a lot of borrowers are there because they couldn’t get a loan elsewhere.

Keep in mind that not everyone can participate. Borrowers are screened for credit-worthiness. And lenders are restricted by State rules (i.e. I can’t participate as a Texan).

Peer to Peer Lending Sites

The major players in the peer lending world are Prosper and Lending Club. Click on the appropriate links below to get started with peer lending.

Borrow with Prosper
Invest with Prosper
Borrow with Lending Club
Invest with Lending Club (includes a $25 bonus to get started).

What is Peer to Peer Lending? is a post from: PT Money: Personal Finance by PT.

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Obama Credit Card Debt Relief: Will the President Pay Your Debts?

PT — Thu, 17 Jun 2010 21:04:18 +0000

No. He won’t. There is no such thing as Obama credit card debt relief or an Obama credit card bailout program. These are simply marketing tactics used by debt relief companies to make you think you’ll get something for free. The Google ads adjacent to this article might even use that language. The same message has been seen on TV and heard all over the radio.

The pitch you might have heard is that consumers with over 10,000 in credit card debt could have a significant portion of their principal wiped out, never to be paid again. This simply isn’t part of the Obama economic stimulus package that was released onto our economy back in early 2009. Nor is it a part of the credit card accountability, responsibility, and disclosure act (CARD Act) that went into effect earlier this year. There is no Obama credit card debt relief program.

The companies behind these messages are shady debt settlement companies. If you truly want to experience credit card debt relief, then simply make a plan to pay down your credit card debt. Or use a service like DebtGoal to help you legally eliminate credit card debt. If you do decide to use a debt settlement company, please go through the NFCC.org to find a non-profit company.

photo by the US Army

Obama Credit Card Debt Relief: Will the President Pay Your Debts? is a post from: PT Money: Personal Finance by PT.

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What to Do if You Can’t Pay Your Car Note: Stop Car Repossession

PT — Wed, 16 Jun 2010 14:41:16 +0000

Not Paying Your Car Note Leads to Ugliness

You don't want a visit from this guy. Do you?

I just got a visit from the repo man last night. Not a pretty scene. My neighbor is apparently behind on his car payments and his lender has had enough. They’ve called on the dogs, who are using any means necessary to get the car. Including accusing me of hiding his car at 11pm. Repo men tactics are classy, aren’t they?

Anyway, repossession is just a mess. You don’t want your neighbors knowing about your bad debt issues, do you? And you definitely don’t want your credit score to be damaged. A late payment can affect you by as much as 100 points. And a repossession can ding you even worse. Here’s what to do when you fall behind on your car payments and how to avoid the dreaded repossession.

Three Ways to Stop Car Repossession

Call Your Lender – Get on the phone with the company that lent you the money for the car and talk to them about your situation. They should be open to working with you and keeping your business. They don’t want a charge-off. They want a paying customer. They may be able to work with you and give you more time to make your payment. As soon as you make the payment, get a letter and / or receipt showing you are all paid up. This will be good ammo if the repo guy comes around again.

Consider a Refinance – If you’re past that point, consider asking your lender about a refinance. Yes, you can refinance a car loan. By extending the term, you could potentially lower your payment to something you can afford each month.

Sell the Car – Another option would be to sell the car and completely pay off the car loan. I like this solution the best. Because if you can’t afford something, then you shouldn’t have it. Just get rid of it. Get the creditor off your back and never have to worry about a payment again. This is a no-brainer if you are a two car family.

Your last option is just to keep running from the repo man and ruining your credit. You don’t want that. It will eventually catch up to you, or at least your ticked off neighbors will.

Have you ever had to deal with a friend or family members repossession?

photo by djares1

What to Do if You Can’t Pay Your Car Note: Stop Car Repossession is a post from: PT Money: Personal Finance by PT.

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Paying Off Debt Faster with DebtGoal

PT — Mon, 14 Jun 2010 14:52:06 +0000

Since I started this blog, I’ve paid off roughly $40,000 in debt. I did it primarily through my own efforts (i.e. throwing all my extra cash at the debts). I know some of you are paying off debt as well. Good for you.

If you’ve tried the do-it-yourself guide to paying off debt and not had success, you might want to consider a debt reduction service to help you achieve your goal of paying off debt. I recently interviewed the creator of DebtGoal to learn more about his service to help you pay down debt faster.

1. Why do you think so many people find themselves in debt they can’t manage?

Very few people wake up to find themselves with an unmanageable debt problem. Most of us start with spending habits that put us close to the edge, taking on more debt than we are comfortable with. Then we hit an economic bump in the road or take a hard look at our finances and discover that we more than we can handle.

When we talk to our members, most say that one of the biggest drivers for their debt problem is simply the complexity of their finances: they spend from multiple checking accounts and credit cards and don’t have a consolidated view of what’s happening with their debt. Without that view, it’s easy to take on more debt than we can support.

2. What does DebtGoal offer to help people get out of debt?

The core of the DebtGoal program is the SmartPay Plan. It’s common sense that if you don’t have a plan to follow you won’t make much progress, but over 70% of people who say they have a goal to reduce debt don’t have a plan to do so and have no idea how to do so.

The SmartPay Plan helps borrowers set up a plan that works for their budget that will get them out of debt most efficiently, often getting them out of debt over 15 years earlier and saving $35,000 in interest compared to what would happen if they made the payments suggested by the banks.

We make this process as easy as possible by allowing users to link their SmartPay Plan to their online accounts so that their plan changes to reflect their situation. We also track progress and show users how they’re progressing relative to their plan.

3. How did you come up with this idea?

I came up with the idea after doing product R&D research for a major credit card issuer and from experiences helping family and friends create a plan to pay off their debt. During this process, I realized that it’s very complicated to create an optimized plan. I’ve worked with spreadsheets a lot and for me it was very difficult.

I realized that for most people the process is too complicated and would take too much time, but that we could use technology to simplify the process and make it easy and fun. That’s where the idea started, but we’ve gotten tons of feedback from our users that we use to continually refine the service.

4. Why do you think your solution is so effective?

We’re effective because we hit all the key requirements. First, we offer a consolidated view of their debt that tracks total debt levels over time and highlights progress. Second, we give the user a very tactical month-by-month SmartPay Plan that gives borrowers an optimal payment plan to get out of debt most efficiently. Third, we give users a framework to look at all areas of their finances in the context of their debt goals to evaluate decisions like whether they should change their retirement contributions to free up money to apply to debt. Finally, we provide as much motivational feedback as we can.

With every payment a user makes, we help them see how much principal they’ll pay off and how much interest that will save them. It’s hard to over-state the power of just telling people that when they pay $100 to their credit card, $60 of that will reduce principal and that payment may save them $40-50 of future interest. When you help people see that feedback, it becomes much easier to stick with the plan and make progress.

5. What kind of people do you see having the most success with your service?

Our service is designed to help anyone who is currently able to make at least minimum payments. If you can make minimum payments and avoid making new charges, you can pay off your credit card debt in just 2-3 years. So really, anyone can make progress.

The people who are most successful with the program are those that are really committed to getting out of debt. They tend to be families who are looking at the future and have decided that their lives will be much richer without the high costs of debt.

Want to try out DebtGoal? Check out the DebtGoal 7 day trial.

Paying Off Debt Faster with DebtGoal is a post from: PT Money: Personal Finance by PT.

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Excessive Credit Card Debt: How Much is Too Much?

PT — Fri, 28 May 2010 11:00:19 +0000

Do you have excessive credit card debt? When it comes to credit card debt, excessive is a very subjective thing. What may be excessive for you, might not be for the next guy or gal. After all, we are dealing with personal finance here. It’s personal. We’re all on different levels. Still, there are some fundamental concepts that you need to be aware of that will help to shape your definition of excessive. How you perceive interest charges, credit card limits, credit score factors, and debt in general, will have a big impact on what you think is excessive.

Different Approaches to Credit Card Debt

Your definition of excessive will depend on your approach. Check out these 4 common approaches to credit card debt.

1. The Whole Idea is Excessive (i.e. Just Don’t Do It)

Some people completely stay away from credit card debt. In fact, they might not even have one. Some people I know have cut up their cards and swear never to use them again. This is often routed in a deep belief that credit is a danger, or even an evil, that shouldn’t even be used. People in this camp typically turn to a reward debit card if they want to join in on the whole rewards points thing. To this person, just having a credit card and considering it for potential use is excessive.

2. Any Balances Carried Past a Month Are Excessive (i.e. Use Credit and Take Advantage of It)

Folks in this group like to take advantage of the benefits that credit cards offer, without being subject to the negative aspects of card. They like to say they “use credit responsibly”. This means they don’t carry a credit card balance out past the term. So they pay no interest charges or late fees. They also rack up rewards points that the credit card company offers. To this person, any credit card debt that you have to pay interest on or that you don’t earn cash back card rewards on is excessive.

3. Any Balance Over 30% of Available Credit is Excessive (i.e. Just Use Credit a Little)

When you carry a balance on your credit card that is in excess of 30% of your credit limit (i.e. line of credit), then you run the risk of negatively affecting your credit score. The bureaus see that as a sign that you are relying too much on your debt. With this in mind, some credit card users don’t mind the occasional balance. But they know about the 30% rule, so they keep the balances low. To this person, any credit card debt above 30% of the credit limit is excessive.

4. Any Balance at or Exceeding the Line of Credit is Excessive (i.e. Use the Heck Out of Credit)

Some people simply don’t know, or don’t care about the high interest that comes along with credit card debt. They constantly keep their credit cards maxed out, but don’t breach their limits. They may even pay on time and never incur a fee. But they pay big amounts in interest payments. They see this as the cost of the convenience of credit. To this person, any credit card debt above the total credit limit is excessive.

For the record, I think #1 and #2 above are the only way to go. And if you aren’t there, you need to be working yourself in that direction. However, I realize there are times in your financial life where you find yourself settling for the #3 and #4 approaches. I’ve been there myself.

Getting Rid of Your Excessive Credit Card Debt

If you’ve come to this post and you are trying to eliminate your credit card debt, then here’s a 6 step plan for you:

Do whatever it takes to stop using the credit cards
Write down your current credit card debts
Prioritize them based on balance or interest rate
Start using every extra dollar in your budget and pay the first card off
Repeat that last step until all your cards are paid off
Enjoy being in control of your credit card debt

Have you ever had excessive credit card debt? How do you define excessive?

Photo by Andres Rueda

Excessive Credit Card Debt: How Much is Too Much? is a post from: PT Money: Personal Finance by PT.

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Take Back Control: Use Your Credit Wisely

PT — Mon, 12 Apr 2010 14:31:14 +0000

In today’s post I’ll share how to handle debt. I’ll tackle two overall themes: (1) understanding different types of debt and (2) how to get rid of unwanted debt.

Understanding Debt

Bad Debt vs. Good Debt

While I generally believe that we should try to avoid any debt in our lives, I also believe that some debts are worse than others. Generally, good debt refers to those debts that incur a low interest rate, can help to create income (e.g. student loans), or are used to purchase appreciating assets (e.g. mortgages). Bad debts would be the opposite: debts that incur a high interest rate, don’t create income, and are used to purchase depreciating assets. The point of those definitions is to help you evaluate your choice before getting into more debt and to help you prioritize your debts when paying them off.

Please Avoid High-Interest Consumer Debt

One of the worst, and most common types of debt we get into is high-interest consumer debt. An example would be using a credit card to pay for a vacation and paying off the balance over several years. If you can simply avoid this type of debt in your life, you’ll be light years ahead of your peers and you’ll be able to do a great deal more with your money.

Use Credit Wisely

At a minimum, you should shoot to avoid carrying a balance on any revolving credit (e.g. credit cards) from month to month. Doing so will cause you to incur interest charges. You’ll end up paying more for the things you buy. A great deal more.

Benefits of Less Debt

Now that we have a clearer picture of the types of debts to avoid, let’s discuss how you can go about getting rid of that debt. But first let me discuss the benefits of paying down your unwanted debt.

Avoiding the Hassle – If you didn’t have all those debt payments to worry about each month, you’d free up your mind and time to do other things. Less stressful things.

No More Interest Charges or Late Fees – Paying interest charges and the occasional late fee stinks. It’s costing you much much more to finance this stuff than had you just paid for it all upfront. If you paid off this debt, the interest payments and potential late fees would go with it.

Debt Payments Could Be “Savings Payments” – If you got rid of your monthly debt payments, you could begin saving that same amount in your retirement account or short-term savings account.

How to Pay Off Debt

If after all of this debt talk you find yourself wanting to get rid of your debts, you’re in good company. Over the past couple of years I’ve been able to get rid of a lot of unwanted debt. I blogged about my journey. Here are some of the more memorable posts:

I share those with you not to brag, but to give you some motivation to pay down your own debt.

Paying off debt is challenging. It doesn’t happen over night. And it usually doesn’t just happen for those that really really want to do it. It takes a plan, and consistent hard work. Here’s my best advice for paying down debt:

“Know your debts, prioritize the debts, establish a payment plan, automate the payments, create accountability, and reward yourself.”

For more specifics on this, see these blog posts:

That should give you plenty of motivation and strategy for getting rid of your unwanted debt. Best of luck to you in your efforts.

Photo by .faramarz

Take Back Control: Use Your Credit Wisely is a post from: PT Money: Personal Finance by PT.

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Unautomate Your Finances: A Simple Passionate Approach to Money

PT — Tue, 09 Mar 2010 16:30:56 +0000

A new financial guidebook just became available that I really like. It’s called Unautomate Your Finances: A Simple, Passionate Approach to Money. It was created by Baker from Man vs Debt. I was able to get an advanced copy of the guide and thought I’d share a bit of my thoughts on the book. First, here’s what you’ll get with the complete package:

Unautomate Your Finances: What’s Inside?

A comprehensive 83-page eBook, featuring “The Unautomation Theory”, “The Science of Unautomation”, and “Applying Unautomation”. Over 25,000 words dedicated to providing everything you need to adopt a simple, passionate approach to money.

A 27-minute video interview with Leo Babauta of ZenHabits.net. Baker interviews Leo on how he applied the principles of simplicity and minimalism to dramatically turn around his financial life. Powerful insights from a leader in simplicity, blogging, and productivity.

A 29-minute audio interview with J.D. Roth of GetRichSlowly.org, one of the top personal finance blogs on the web. J.D. joins Baker on a call to discuss his own financial recovery story and what it’s like now that he’s in the “third phase of personal finance”.

A 2-page, custom-designed PDF version (printable) of the minimalist budgeting system discussed in main guide.

A bare bones Excel template for those who want to take the minimalist budgeting system digital.

Free Extended Updates! Over the next 6 months, Baker will be releasing sample case studies, FAQ’s, and exclusive interviews… for free!

That’s a lot of information/inspiration for the small fee that Baker is charging. Read more about Unautomate Your Finances: A Simple, Passionate Approach to Money.

My Thoughts on Unautomate Your Finances

First, don’t be thrown off by the title. I’m a huge fan of saving more money using automated techniques, so I didn’t know if I would like the message in the book. But Baker isn’t against using automated tools like direct deposit and bill pay. What he does stress is keeping things simple and doing it consciously.

But he doesn’t stop there with his message. His guide goes into great detail, giving you specific steps for simplifying your finances by spending consciously, simplifying your budget, and he shares his own debt reduction techniques which he’s used to pay off thousands of dollars in debt. This guide will no doubt challenge what you’re currently doing with your money and your life.

I know Baker and I know he’s put a lot of hard work into this guide. Give a listen to his video and see if you connect with his message. If so, I encourage you to pick up his guide. Unautomate Your Finances: A Simple, Passionate Approach to Money.

Unautomate Your Finances: A Simple Passionate Approach to Money is a post from: PT Money: Personal Finance by PT.

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