According to the National Council on Aging, Americans are carrying more debt into retirement than ever before. 18% of Seniors are using over 25% of their income for debt payments.  Living on a fixed income with rising expenses, many seniors are making harsh trade-offs to meet debt obligations. In some cases this means skipping meals and foregoing or cutting doses of their prescription medications.  The good news is that there is help out there for seniors who are looking for options and solutions. Unfortunately there also scams to be careful of. So here are some steps and resources to help you explore your options safely.

Step 1: Talk to an NFCC-certified financial counselor

If debt is consuming your budget, it is time to reach out for help.  A counselor certified by the National Foundation for Credit Counseling (NFCC) can talk through all of your options for dealing with the debts, including a debt management program. Some NFCC agencies also will have housing and reverse mortgage counselors on staff. They can talk with you about housing debt or options to help with property taxes.

Give LSS Financial Counseling,an NFCC-certified agency, a call at 888.577.2227 to schedule your free and confidential session over the phone or in-person. Or click to GET STARTED ONLINE at your convenience.

Step 2: Check on your benefit eligibility regularly

The National Council on Aging has a site where you can complete a questionnaire.  It will provide you with a list of benefits you’re eligible for to help reduce expenses and free up some monthly cash flow.  You will need accurate income and expense information to make sure that your report is as precise as possible.  Here are the types of expenses you may get help with:

• Medications
• Food
• Utilities
• Legal
• Health care
• Housing
• In-home services
• Taxes
• Transportation
• Employment Training

To run your report today, visit www.benefitscheckup.org.

Step 3: Be a financial advocate for yourself

Please be cautious about anyone who is asking you for any of your personal information such as your social security number.  Follow your instincts, if it feels wrong or sounds too good to be true it probably is.

If someone says they are calling from your bank or credit card saying that they need your Social Security number, it is a scam. Your bank and Credit Card Company already have that information and they would never call you to ask for it. Also, be very suspicious of anyone calling to tell you that you won a trip or prize. If you need to pay anything to receive your winnings, then it is not legitimate.

For more retirement tips, check out How to plan for medical costs in retirement and Inflation: Retirement’s Silent Killer.

Author Ashley Hagelin is a Certified Financial Counselor and she specializes in Reverse Mortgage and Foreclosure Prevention Counseling with LSS.

Flashback Friday to this post about free and cheap ideas for family fun. There’s still time to get outside before the snow flies and there are ideas for the heart of winter, too. Read on and enjoy saving money while you and your family have some fun!

Budget conscious families are always looking for ways to save a dollar. While having fun together is important, it can also be expensive. If you’re willing to be creative and do a little homework, there are many options for free or low-cost entertainment that offer hours of family fun without breaking the bank. Here are just a few ideas I came across.

CHECK LOCAL RESOURCES FIRST

There could be more to do where you live than you ever dreamed of:

• Use the internet to search your town or city name and state, followed by “free activities.”
• Call your local library for free book readings, kids’ story time, and other programs. Don’t forget to check out books and movies.
• Check your local newspaper, visitor bureau, city hall, or chamber of commerce for upcoming free or low-cost events.
• Call or visit the websites for your local high schools and colleges for concerts, plays and sporting events.
• Explore a new part of town.
• Visit a county fair or farmers’ market.
• Check to see if your local zoo, museum, art gallery, or aquarium offers a free family day.
• Have a Staycation and camp in your backyard.

GET OUTSIDE AGAIN

If your family loves the outdoors and physical activity, the following suggestions for family fun may work for you. Or if your family needs a bit more fresh air, these are simple ideas for rediscovering the great outdoors.

• Collect rocks, leaves, feathers, or hunt for 4 leaf clovers. Then create something colorful to remember your day!
• Visit a berry farm to pick your own ripe delicious berries.
• Call your local extension service for information about working farms that offer tours.
• Go sledding or ice skating. Take a walk or hike. Fly a kite, ride bikes, or rollerblade.
• Back yard activities: play horseshoes, croquet, badminton, tag, or hide & seek. Watch the clouds or star-gaze. Bird-watch, feed birds, or plant a garden with your kids. For you hearty folks who live in a snow belt, build a snowman, have a snowball fight, or make snow angels.
• Check with local and state parks for free activities or programs. Click HERE for a ParkFinder.

BRAINSTORM AS A FAMILY

Your own family also might have plenty of ideas. Follow their inspiration to see which fun-filled activities you can do together without costing a dime. Not only will you keep your budget intact, but you can share real quality time as a family. So, put on your thinking caps and enjoy the fun-filled days to come!

Want some more ideas to save money? Check out Ashley Hagelin’s blog post, 5 Ways to Beautify Your Outdoor Space for Less.

To find out about more creative ways to save money, call LSS Financial Counseling to schedule an appointment with a Financial Counselor. We can help you take action today to improve your spending habits, build up emergency savings, and conquer your debt. Or, START ONLINE COUNSELING NOW. It’s free and just as effective as phone or in-person counseling, but you can do it at your leisure. Contact us today!

Have you read a testimonial about an amazing couple who are 1 payment away from being credit card debt-free? Click HERE to read Mike and Carol’s story. I promise it’s awesome!

By Barbara Miller

In honor of National Disability Employment Awareness month, here’s a guest post about savings as an options for individuals with disabilities.

Often individuals with disabilities are not familiar with the savings options available to them, or they may be afraid to save money in fear of jeopardizing their public benefits. However, there are a wide variety of saving strategies that individuals with disabilities can potentially access to achieve their savings goals and improve their financial well-being. At National Disability Institute (NDI), we focus on five key strategies that we believe can assist an individual build a life of work, savings, and asset development. The five key strategies are:

Benefits Planning and Work Supports

There are savings options available to individuals who are receiving a needs-based benefit, such as Supplemental Security Income (SSI), through the Social Security Administration (SSA). The SSA offers work incentives that support an individual to go back to work and maintain employment while receiving a public benefit; and examples of this is the Plan to Achieve Self-Support, often referred to as PASS. PASS is a plan for an individual’s future and allows an individual use income or other assets to help them reach their work goals. An individual could, for example, set aside money to go to school to get specialized training for a job or to start a business. To learn more about PASS or other work incentives, review the SSA’s Red Book at https://www.ssa.gov/redbook/documents/TheRedBook2016.pdf.

Employment

Employment is important to improving financial well-being, and employment services are available to help individuals with a disability to obtain, maintain, or enhance their employment status. A great starting point is a visit to a local American Job Center (AJC), also called Workforce Centers or One-Stop Centers. AJCs are designed to provide a full range of assistance to job seekers under one roof. They offer training referrals, career counseling, job listings, and similar employment-related services. 

Tax Preparation

Tax time is an ideal time to encourage individuals with disabilities to save money. We find that individuals with disabilities will often not file a tax return either because of low wages or in fear that if they file and receive a tax refund, they will lose their public benefits. It is important for these individuals to know that refunds received from the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), or other refundable credits are not considered income. In addition, these refunds are not counted as a resource for at least 12 months from when an individual receives it for benefits or assistance under any federal program or under any state or local program financed in whole or in part with federal funds. More information about disability and free tax services is available online at https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/disability-and-earned-income-tax-credit.

Financial Education

Financial education is a critical first step on the road to financial stability. NDI has several initiatives dedicated to understanding and implementing key financial concepts to help people with disabilities take hold of their financial futures. FDIC’s Money Smart, for example, provides an accessible curriculum that is frequently used by disability organizations. To learn more about NDI’s financial education tools and resources, visit http://www.realeconomicimpact.org/financial-education/financial-education-toolkit.aspx.

Asset Development

Individuals may not be aware of programs that can assist them to save money to buy a home, go back to school, or to start a business. Individual Development Accounts (IDA) are a savings option for individuals with disabilities. If an individual saves money in a federally matched IDA program, the funds will not impact their eligibility for federal benefit programs. Similarly, ABLE Accounts are a savings option for individuals with disabilities who qualify. ABLE Accounts allow an individual to save up to $14,000 per year without these funds impacting a needs-based benefit such as Supplemental Security Income. Money saved in an ABLE Account can be used to pay for qualified disability expenses.

By Michael R. Roush, Director, Real Economic Impact Network, National Disability Institute

National Disability Institute is the first national organization committed exclusively to championing economic empowerment, asset development and financial stability for all persons across the full spectrum of disabilities. We affect change through public education, training, technical assistance and policy development to help the one in three Americans with disabilities living in poverty take steps toward creating brighter financial futures. To learn more, visit www.realeconomicimpact.org. If you have specific questions on savings options for persons with disabilities, please send an email to ask@ndi-inc.org. Engage with NDI on Facebook: RealEconImpact or follow NDI on Twitter: @RealEconImpact.

Visit ConquerYourDebt.org for more information about LSS Financial Counseling. We provide free counseling services to help everyone achieve financial stability.

We’re continuing with our Counselor Spotlight! This week let’s meet April…

April came to LSS Financial Counseling in 2008 with a background in helping homeless youth regain stable financial footing.  While working with the youth she found a love of helping people achieve their financial goals, so the move to Financial Counseling fit her personal mission perfectly.  April is part of the Student Loan, Partner Relations, Financial Education, and Blog Teams.

Proud Moments

I asked April to tell us about someone she has helped over the last 9 years that really stood out to her. This was her response:

“Gary”

“There’s nothing better than watching someone become confident in their own ability to take charge of their finances. I met with a gentleman in 2014; he wanted to fix his credit and at that time his credit score was in the 400s.  We discussed how to fix some errors, pay off bad debt, and establish new credit habits that will build credit. This gentleman recently came back in as he’s hoping to be able to buy a home one day.

His score is now over 700 and he is very close to his dream of purchasing a home coming true.”

“Felicia”

“A few years ago I helped a single mother develop a budget that she could feel comfortable with and confident in knowing that everything balanced.  “Felicia” called me a few months after our appointment to let me know that she was still sticking to the budget and was able to put away and KEEP money in savings.  She said she was going to make sure her kids knew how to do this so they never had to feel lost and hopeless like she did with their finances.

When the people I serve pay off their debts through a DMP I call to congratulate them every time. It’s a great feeling to be able to tell someone that all their hard work paid off and to hear the pride in people’s voices when they acknowledge they made that choice to take action and conquer their debt.”

A few words from April’s supervisor

April is an honest, smart, compassionate and fun person.  She believes in what she does as a counselor and in the LSS mission.  April does a great job working with all clients.  She has a nice laid back approach when communicating and because of this, she can relate to people on many different levels.  April does a great job of connecting with the people she serves and giving them the information they need to make solid decisions regarding their finances. Her passion to help others is something we all admire at LSS.

In addition to her many specialties, April has taken on a variety of special projects over the years. One example last year was that in conjunction with a local credit union, she was able to deliver presents to people in the community right before the Christmas holiday. This was really rewarding for her to help out local families in need over the holidays.

If you would like to meet with a counselor like April to regain control of your finances and conquer your debt, call LSS Financial Counseling at 888.577.2227. Or click to GET STARTED ONLINE with your free financial counseling session.

A while back at our Financial Counselor meeting, I heard the phrase, “Expenses rise to meet income.” My first reaction was, “Well, they don’t have to.” And next, “I don’t do that.” The phrase stuck with me and I thought about it more. I had to be honest with myself—even a pathologically frugal person like me lets expenses rise with my income.

Case in point

For most of my life I lived with broadcast television and library videos watched on hand-me-down TVs. Five – six years or so ago I got envious of my friends talking about the great stuff they were watching on internet streaming sites. So, I started to pay for streaming. But, because I only had a pre-war TV, I had to move off the couch in the living room to a hard chair in front of the computer screen to watch television. I was okay with that, but my cat was not. It led to a lot of disagreements about what was comfortable and what wasn’t.

So 2 years ago I paid money for a new TV for the first time in my life. We were back on the couch for TV time, and harmony was restored to the household. But, of course, that meant I needed a number of other devices, like a digital antenna and some box to get the internet to my TV. More expenses. Now, I could argue it was justified to keep the cat happy, which makes my life easier, but I didn’t need to pay for entertainment. There is plenty to watch on broadcast TV, and my library is only 2 blocks away.

Why wouldn’t you want to let expenses rise to meet income?

1. To save for the future. I have a cousin who always put her raises into her retirement account. Because of her diligence, she was able to retire early with her husband and they are enjoying life very much—still young and able enough to travel a lot, visit grandchildren around the country, and be quite comfortable.
2. To manage unforeseen events. An estimated 62% of Americans have less than $1000 in savings. Almost a quarter don’t even have a savings account. It doesn’t take much of an emergency (new brakes on the car or a furnace repair in January) to put a family into a financial tailspin. Instead of getting the latest and greatest smart phone with that raise and the attendant increased monthly expense, put it into an emergency savings account. Financial counselors cannot stress enough the critical importance of emergency savings—we see the consequences daily of not having a savings cushion.
3. Job loss or other reduced income. Keeping monthly expenses to a minimum will make it so much easier to weather a reduction in income, which can come in many forms – temporary layoff, reduced hours, disability, divorce, etc. Not being tied to expensive cable contracts, that new car payment, or a bigger mortgage payment will make adjusting to the reduced income so much easier.

Of course, I’m not suggesting we all have to live like we’re in the Dust Bowl. Just be mindful of taking on that new expense. Don’t rush into it.

• Review your retirement and emergency savings: Is your savings sufficient?
• Ask yourself how necessary the expense is: Can a cheaper car suit your needs? Does everyone in the family need their own private space in a bigger house? Is the premium cable package really worth it?
• It is useful to remind ourselves, too, how manipulated we are by marketing to spend our hard-earned money on unnecessary stuff. I’ve heard we get 5000 messages a day to buy something. That’s a lot of pressure.

So, BE STRONG! RESIST TEMPTATION! It is guaranteed you’ll thank yourself someday. We can be there to support you, too. For more helpful info, read The best financial habit to start and Are you prepared for a financial emergency?.

Or, if you are looking for more hands-on help to get your finances back on track or pay off your debt, click to GET STARTED on your online session. If you’d rather do a phone or in-person session, call us at 888.577.2227.

Author Mary Ellen Kaluza is a Certified Financial Counselor with LSS Financial Counseling and specializes in budget, credit, debt counseling and frugality.

Whether or not you should lend money to friends and family is always a hot topic. Recently one of my close friends, “Kara” loaned money to one of her friends, “Jen”. Jen asked for the money to help with a financial crisis. Kara was nice enough to help out Jen; she gave her about $1,300. Now Jen has decided to file bankruptcy. Kara is out money and lost trust in her friend; she’s also sad and disappointed because their friendship is likely over now. So here’s our Flashback Friday post about lending money to friends & family.

There is nothing wrong with helping out someone financially. However, you need to consider the risks involved before making the decision to lend a financial hand.

Here are 3 questions to ask yourself before giving/loaning anyone cash:

1.) Am I putting myself and my immediate family at risk?

If the answer is yes, don’t do it. Instead, focus on priorities: keeping a roof over your and your family’s heads, food on the table, transportation for school/work, utilities, and other payment obligations such as student loans or credit cards.

2.) Is this a one-time thing?

Determine this right away by talking to the person. Ask them, “If I give this to you, will it help you stabilize your situation?” If it’s going to be an on-going gift or loan, you’ll need to decide if that’s truly affordable. And not to mention if it’s a recurring donation, is it really helpful in the long run to keep giving to your friend/family member?

3.) Even if I can afford to lend money, should I?

Ask yourself first if you want the person to pay you back and what happens if s/he doesn’t. One consequence of giving money to a friend or family member may be a strained relationship – or a friendship ending, as in the case of my friend, Kara. Are you charging interest or just giving money and not expecting anything in return? Be really clear about the details of the gift or loan. Go with your gut: if you think lending money will create problems, it’s best to just say no.

Alternatives to Giving Money

If your friend or family member is struggling financially, here are some suggestions to help in ways other than giving them money.

• Refer them to your local County Offices or call United Way 211 for resources in your area. You never know what someone might qualify for until it’s checked out. For instance, they might be able to access Food Support, food shelves, childcare assistance, medical, and more.
• Encourage them to come up with ways to make money. Can they babysit or do something for you (or someone else) that would normally be paid for anyway? That way, both of you benefit.
• Another idea is to suggest that they have a garage sale &/or sell their unwanted/unused goods online (make sure it’s a secure/legitimate site).
• Do they have unsecured credit card debt? Refer them to LSS Financial Counseling so they can set up a budget and see if a Debt Management Plan (DMP) is right for them. DMPs help people pay off credit card debt in 5 years or less, likely reduce interest rates, and sometimes even monthly payment(s).

Part of the reason we give to others is because is feels good. In the end, it’s your decision how to spend your hard-earned money. It might be difficult to say no, but in the end you have to do what’s best for YOU and your family.

For even more financial tips, check out How to make spending cuts to get out of debt and Ideas to balance your budget without increasing income.

If you want to create a realistic spending plan so you can build up savings, improve your credit, or conquer your debt, give LSS a call at 888.577.2227 for your free financial counseling session. Or click the button below to get started with your free online session. Take charge of your finances today!

Start Counseling Now

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

Here’s a Flashback Friday post from last January. What will you do in 2017 to improve your bottom line?? Below are some simple ideas you can try right away…

It’s almost that time again to make a resolution…if you’re into that kind of thing. Even if you’re not, it’s a good excuse to make positive changes in your life. Most people resolve to eat better or exercise. But what a lot of us probably should do is resolve to improve our financial situations because study after study shows that people think about finances all the time. And being in a bad financial situation can be detrimental to our health and our lives in general.

So make 2016 YOUR year to become financially healthy or improve your finances in some way.

Simple tips to improve your finances:

• Create a budget so you’re aware of what you’re spending and any changes you might need to make…then stick to your budget.
• Start a savings account and shoot for $25/per pay period or whatever is affordable for you.
• Already have savings? Increase your savings. Choose a goal and a deadline like: “I will save an additional $500 by June 2016”.
• Increase your retirement savings contributions.
• Reduce expenses like dining out, coffee shop coffee, etc. Every time you skip it, set aside $5, $10, or the amount of your choice into savings. Either leave it just to build up emergency savings or if you already have a safety net, keep some in savings and use a portion of what you save up to buy something for yourself.
• Stop charging on credit cards and cut them up if you have to. Or, only charge what you can pay in full each time.
• Pay extra toward your debt each month to pay it off sooner and save money in interest charges. If you make spending cuts, think about using that money to pay down debt.
• Want to go on a tropical vacation next year? Start saving NOW to pay for your trip without having to charge it.

What’s your goal?

Sit down and think about what YOUR financial goal is and pick something that will help you reach your goal. If you pick one goal or four, just remember to write it (or them) down and keep it visible.

If you can, find a friend or family member that is working toward a goal as well and check in on progress with each other. You will find that accountability helps keep you on track…and support from a good friend never hurts either.

If your goal is to conquer your debt and you’re not sure where to start, giving LSS a call is a great first step. Our counselors will work with you on creating a realistic budget and will explain your options for debt repayment. After a session, you will have a plan of action with tangible steps to help you pay off your debt for good. Call us at 888.577.2227 or click here to start your online counseling session right now from the comfort of your home. We can help you make 2017 the best year yet.

For more ideas, read 4 ways to improve the 52 week savings challenge and The 1-year no spending challenge.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

Flashback to some step by step guidance to build your emergency fund. This practical advice can help your savings grow to new heights in 2017.

Saving money can be hard! We all know we should do it, and some of us actually do. Even when we do save, we know we should be saving more. So, what’s a poor girl (or guy) to do?

Emergency savings should be a high priority on our list of savings goals. Struggling paycheck to paycheck is surely no fun. And, it only gets harder if you have no safety net for life’s little bumps.

Experts recommend saving from 3 to 6 months of your monthly household expenses in case of job loss or other crisis. The problem is, it can literally take years to achieve this goal. Just like saving for retirement or a child’s college education, saving can take an excruciatingly long time. And unfortunately, the longer something takes to complete, it may prevent us from getting started at all.

Instead of focusing on the big picture, let’s break down the process into smaller steps that can easily be accomplished in a short amount of time.

Step 1

Open a savings account at a local bank or credit union. You can also visit online banks which may offer better interest rates since there is less overhead than a brick and mortar operation. A word of caution is needed here. Before setting up an internet banking account, do your homework to learn about potential pitfalls and ways to keep your money safe. Visit the FDIC for a primer on internet banking. Bankrate.com rates online banks and reviews several variables, in addition to the interest rate. Obviously, how much interest you earn is important, but make sure that the other features offered suit your needs.

Step 2

Make your savings automatic. Talk with your payroll or human resources department about setting up automatic deposits into your savings account each paycheck. Designate a certain amount that you know is affordable. Don’t reach for the moon or your plan will quickly implode! Even $20 a month helps to establish a positive saving habit and the discipline needed to help you reach your goals.

If your employer does not automatically deposit your paychecks, take the initiative to transfer cash from your checking account to your savings as soon as you get paid. That way you won’t miss the money. Even more important, you won’t spend it on something else before the money is moved.

Step 3

Leave your savings account alone unless you have a true emergency. If you withdraw your deposits on a regular basis, it will take forever to make any progress. That will likely lead to disappointment which may prompt you to abandon the whole plan altogether. So, do not sabotage yourself!

Step 4

Use extra funds to boost your emergency fund. Use cash windfalls like tax refunds, extra paychecks, pay raises, cash gifts, rebates, and so forth to add to your savings account and help reach your target amount more quickly. Save a portion of each windfall, but also splurge a little on yourself or family. We all can use a reward when we do the right thing!

If you can’t trust yourself to save part of your tax refund, adjust your tax withholdings to minimize your tax refund and maximize the money in your paychecks. Then, dedicate the extra money to your automatic savings. Talk with your tax advisor or visit the IRS website to calculate the correct withholding amount so you don’t owe taxes at the end of the year.

Step 5

Assess your saving rate every few months by asking yourself: “Can I be saving more?” If the answer is yes, increase your automatic deposits – even if it is just $5 a paycheck. Every little bit will help and you can take pride in the advances you have made.

Step 6

Look at other ways to increase savings. Clean out your closets and basement and have an old fashioned garage sale. Or, sell unused items on eBay or craigslist. Another option to find more cash is to cut back on luxury items like pay TV, entertainment, or dining out. Allocate the proceeds to your savings account and watch the balance grow!

The only way to build an emergency fund is to start – whether small or big – and every little bit helps. So good luck and happy saving!

LSS Financial Counseling serves everyone. If you’d like free, confidential help with tools or financial coaching, give us a call at 888.577.2227 or START ONLINE COUNSELING NOW. We’d love to hear from you.

By Barb Miller

We’re excited to announce that Superior Choice Credit Union has opened applications up for their 2017 Great Debt Pay Down! 

WHO IS ELIGIBLE TO PARTICIPATE?

ANYONE in the Duluth/Superior and other northern Wisconsin cities area can benefit from it. It doesn’t matter the amount of debt someone has; if you want to get in control of your finances and pay down debt, this is the program for you.

IS THERE A PRIZE?

Yes! The person with the most debt paid off in a year will win a $3,000 grand prize to help pay down debt even more!

There will also be a $1,500 and $500 for second and third place!

WHAT IS LSS FINANCIAL COUNSELING’S ROLE IN THIS PROGRAM?

LSS will provide free, individualized financial counseling, educational seminars, and guidance to support the participants in conquering their debt.

HOW TO APPLY

Visit the SCCU website and complete the application: Great Debt Pay Down Application. Be sure to follow the instructions on where to send in your application.

THE DEADLINE TO APPLY  IS JANUARY 27, 2017.

FOR MORE INFO

Click to visit the Great Debt Pay Down 2017 page with all the program details.

If you don’t live in the program’s area, be sure to pass along this opportunity to friends and family that do!

LSS Financial Counseling supports and empowers people to achieve financial stability, conquer debt, and build savings.

Creating an unrealistic budget

When you create your budget, make sure you use your take-home pay and not your gross income. This seems like a simple one, but if you make that mistake your budget will be busted right away.

You’ve accounted for your rent/mortgage, food, utilities, etc.  and because you can’t afford extras like concerts or going out with your friends every week those expenses aren’t in the budget. But the truth is you will likely go out with your friends or see your favorite band. And that’s okay! You have to be realistic and plan for it. Try to make reductions in other areas so you can have a little fun, too. That way you can avoid the trap and vicious cycle of credit card debt.

Only looking at one month’s expenses

So you’ve created your budget and think, “Yep, I have all my monthly expenses included.” But don’t forget about expenses that come up throughout the rest of the year. Don’t let those planned periodic expenses turn into emergency expenses – because they’re really not. You know that you have to renew your vehicle tabs/registration every year. And if you have a newer car, it’s likely going to be over $200. Do you pay your property taxes or car insurance annually or every 6 months? Do you have an annual gym membership or do you get your hair done every few months? Be sure to account for these expenses in your MONTHLY budget and set aside money for what will be coming up in the near future.

If credit cards are holding you back from having a successful budget, LSS can help. Get started online with your free financial counseling session, or give us a call at 888.577.2227 to schedule your phone or in-person session.

Everyone struggles in one way or another with managing their money. Many struggle to juggle mortgages, student loans, credit card debt, and basic budgeting skills. If you feel like your debt is out of control or hopeless, know that there are definitely others in the same boat.

You may feel stranded and hopeless, but there are ways to find a paddle and come safely back to shore. There are consequences to financial difficulties, but fear is not the way to freedom. Fear is likely to push you further and further into denial and seclusion. The greatest way to gain financial freedom is by empowering yourself with honesty and knowledge.

Gaining control over your debt starts with being honest about your situation. It sounds so simple, yet it’s another place everyone struggles. Being unaware of your finances is like trying to paddle to shore with a blindfold on. Take steps to know what you’re up against.

Find Honesty

A good place to being is to be honest with yourself. There is nobody better to begin this journey with than YOU. You don’t need to be fearless to begin, you simply have to be willing. Face your fears and stare your financial woes in the face. The first few glances will push you past your comfort zone, but it will be worth it in the end.

Once you’re honest with yourself, start being honest with your support group. Here is where I can tell you from experience how much easier handling finances is with your support group on board. When I was first engaged, I hid my credit card debt from my fiancé like I was getting paid for it. When he had to sign for a collection notice, it was all out in the open. I was forced to be honest with myself and my soon to be husband all at once. However, we did confront it. We worked together on repayment plans and opened a door for future transparency. Once I was honest with him, it became easier to tell friends I couldn’t afford certain expenditures and feel like I would be supported. It actually ended up relieving some tension in my friend groups for those of us with lower incomes and big savings goals.

When you’re honest with your support group, your financial management gets so much easier. Yes, you’ll make sacrifices. Take some chances, push past the awkward moments and you can gain so much control over your finances.

Find Help

Managing money can be complicated, even when you’re honest about your situation. If you’re struggling and have some changes to make, take the time to seek out appropriate assistance. Part of the reason it’s so hard to confront our financial pitfalls is because they can be difficult to understand. It feels like going to the dentist, being handed a drill and told “good luck!”

There are nonprofit experts who can get you the assistance you need for free. Whether you’re seeking assistance with credit cards, student loans, mortgage payments or just looking to get your credit in order, there are resources at LSS.

LSS Financial Counseling is here to arm you with the information and support you need. Counselors are not here to judge. In return, we ask that you give yourself the same courtesy.

If you would like to meet with a counselor to regain control of your finances and conquer your debt, call LSS Financial Counseling at 888.577.2227. Or click to GET STARTED ONLINE with your free financial counseling session.

Author Tracie Fauth is a Marketing Specialist with LSS Financial Counseling.

I was thinking the other day about how many times I’ve heard someone say “Ugh I just got paid and I’m already broke“. Another one is “I’d love to go have dinner tonight, but I can’t afford it.” It’s one thing to not be able to afford concert tickets or a trip. But when you can’t afford a $20 dinner and you’re broke right after payday, you need a financial make over. Here are tips to break this vicious cycle.

Makes lists, stick to them, and don’t wander

This may be easier said then done, but I can’ tell you how many times it’s helped me at Target or the mall. Many people go into the store and walk around almost the entire thing. Not me. Full disclosure, it helps that I love shopping, but hate spending a lot of time doing it. So I am not a wanderer. I make my list and because I know where the items I need are kept, I skip the rest of the aisles and go straight to what I need.

Shop online

This may sound like a strange tip, but if you are an over-spender when you shop in person, try shopping online instead. You can find almost anything you need – even toilet paper! However, just beware that you may spend more on certain items and try to avoid high shipping costs. I use Amazon Prime so I never have to pay for shipping and I get everything I need in just a couple days.

I’m not trying to plug Amazon, but it is really handy for me and I get my money’s worth in probably a couple months. Plus, it makes me spend even less time shopping in person and helps me avoid things not on my list that if I saw them I’d “need.” And if you are buying several/many necessities, it may be better to buy them all at once online. Some sites offer free shipping when you spend a certain amount of money. Note: just be cautious of buying something just to get free shipping…make sure it’s worth it and that you need it.

Make big purchases at the end of the pay period

This may not happen all the time; however, sometimes you need to buy a larger item or service that’s not in your budget. Instead of spending money on it the day you get paid, wait until the end of your pay period – right before next payday. That way, you’ll either save money for what you want to buy or you won’t have enough and you wait until next month.

Don’t spend money just because it’s payday

I have been guilty of this more times than I can count. “I just got paid!” That means I can spend more than would have yesterday. Have you ever eaten dinner out just because it’s payday? Me, too. This is probably the hardest habit to break, but I also think it will be the most helpful way to avoid being broke. It’s kind of like when you get a raise you’re supposed to pretend you never got it. Try to avoid falling into the spending just to spend trap and continue with your week business as usual.

Plan, plan, plan

Okay, I take it back. This one is probably the hardest one to do if you’re not already good at planning ahead. This is really broad, but think about what you can plan ahead for so that you don’t spend extra money.

• Get groceries and meal plan so you’re not dining out or buying coffee on the run as much.
• Set money aside in savings whenever you can in case of emergency (car repair, emergency vet bill, leaky roof, etc).
• Give yourself an allowance for planned events like nights out with friends and once it’s gone, don’t spend anymore. That way, you might avoid those extra unnecessary purchases Monday-Thursday because you know you’re going out on Friday.
• If you know you have to run a bunch of errands, make a plan. Try to get all errands covered in one trip to save money on gas.

There are many more ways to avoid feeling broke right after payday. Think about what else you might be able to change to avoid that feeling. For example, do you have a bad financial habit you might need to break? For more tips, read Easy ways to increase financial wellness and The best financial habit to start.

If credit cards are causing you to feel broke and it’s stressing you out, LSS can get you set up on a plan to pay them off faster and save money. Call us at 888.577.2227 for a free financial counseling session from a trusted, local nonprofit. Or, GET STARTED ONLINE right now. Take back control of your finances and conquer your debt.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

Thinking about being a stay at home parent? Read on to help you decide if you can truly afford it.

Bottom line: I love working. I love the social aspect of work, climbing the professional ladder, and of course making money. Being a stay at home parent never once crossed my mine. Never. Ever.

When I got pregnant with my first son, I had every intention of coming back to work full-time. That was until I gave birth and saw his face for the first time. I was a goner. I had heard from friends that I would lose my mind on maternity leave. I would sit in my pajamas all day and eat bon-bons and watch reruns of Law and Order. Nope. Not this lady. (Ok, maybe for the first 6 weeks!)

But after I got settled in I was cooking on a budget, cleaning with eco safe cleaners and making homemade laundry detergent. 4000 loads for $20.00 sounds good to me! Why, yes of course, I can make a dinner for under $3.00 a person! As my maternity leave neared the end I started to panic. I would have actual panic attacks thinking about how my son wouldn’t even know who I was. He would love daycare more than me. I was a wreck my first week back to work. By the time 4 pm rolled around I would get in my car and drive 70 mph to get to him. I realized I couldn’t live like this. A change had to be made. So, I started to build a case to present to my husband. I did a little research and came up with the 3 most important factors.

First question (and most important): Can we afford it and does it make sense?

If you add up every expense from childcare and healthcare to groceries and recreation, the first 18 years of a child’s life can cost a small fortune — $190,528 to be exact. Childcare alone can cost around $4,300 a year for one child, according to Bankrate.com. Now, this isn’t an accurate picture of our expenses but it was a good solid number to start with.

It was time to make an old fashioned budget (monthly cash flow plan). I got out a piece of paper and wrote down what I make in a month. Then I started considering the costs of daycare, taxes, commuting, professional wardrobe, eating out and other work related expenses. After all was subtracted my take home pay was less than a third of my actual salary! Could I afford to give up that amount of income? Unfortunately for us, the answer was NO WAY. So, the optimist in me decided to see if I could cut back in hours. I kept working the numbers until I figured out a part time option that we could afford. Could I work 25 hours a week or maybe 30? I also realized I had to figure out ways to save money. What could I cut out? Where could I pinch a few pennies?

One other thing to think about is health insurance. Do you carry the health insurance? If you do, make sure you research options for health care. This can really add to the expense of not working.

Second question: Do we want someone else raising our child?

Now, this factor is huge for me…almost more than money (my husband would disagree here). There were times when I considered living in a cardboard box and eating Ramen if it meant I could have an extra day with my son. Just wait until you look down at your 3-month-old and go through the emotions that come with dropping him off at someone else’s house. Your situation may differ if you have a relative that can watch your child, but we did not. I would also like to add here that I am a fan of daycare. I believe daycares teach children the social aspects of life so I knew I wanted my child to attend weekly.

Third question: Will being a stay at home parent or part-time parent hurt my career…and identity?

This is a biggie. Everyone has that friend that stays home and has turned into a crazy person. They can’t have a discussion about anything besides pooping and breastfeeding. I did not want to be that woman. This is another reason why a part-time schedule was best for me. I wanted the best of both worlds. I also kept telling myself one thing. I am in my mid-twenties. If I stay home part-time for 5 years I still have 35 plus years of work. Yes, you read that right. 35 PLUS YEARS OF WORK! How is that possible? I don’t know. But I do know that I will have plenty of time!

Check out our Calculator to see if you or your spouse/partner can afford to stay home or cut back in hours. This calculator is designed to help you see the financial impact of adding or removing a spouse/partner’s income to your household.

Want a little more guidance to determine if you can be a stay at home parent or cut back on hours? Call LSS at 888.577.2227 to schedule a free appointment with one of our Financial Counselors. We’re here to help you take charge of your finances, conquer your debt, and achieve your financial goals. So don’t wait – take action today!

We’re also only a click away if you want to start your free online financial counseling session– GET STARTED NOW.

By Kate Swenson

We’ve been told time and time again we should have 3-6 months of income saved in the event of a financial emergency, but how do we save that money? And furthermore, when is it okay to use emergency savings?

Jump Start Your Emergency Savings

Here are some tips on how to get started:

• Think of your savings as a bill. “I must pay savings $50.00 every month.”
• Have some of your paycheck automatically deposited into a savings account.
• Use a separate bank/account for your savings and make it difficult to get to.
• When you pay off a debt, save the money you used to pay for that debt.
• If you get a raise or your income goes up, save the difference.
• Save your tax returns.
• Save your loose change.

Set Goals

Your savings goals are unique to you and your situation.  Your goals can be short or long term; they can be big or small.  Think about your savings goals and ask yourself these questions:

• Are my goals realistic?
• How long will it take me to reach my goals?
• Do I have enough extra money?
• Am I willing to make sacrifices to reach my goals?

When are you allowed to dip into emergency savings?

Emergency savings should really only be used in the following situations:

• You lost your job and need to continue to pay for basic living expenses such as housing costs and utilities.
• You have a medical or dental emergency…but only after checking to see if you can make payments.
• Your vehicle breaks down and it is your primary form of transportation.
• You have emergency home expenses such as the furnace breaking down, your roof is leaking, or the basement is flooding.
• You have a bereavement related expenses such as travel costs for a family member’s funeral.

There have been several national news stories in the last year explaining that more than half of Americans can’t afford a $400 or $500 emergency. That’s scary because having nothing in savings can lead to financial crisis and/or accruing debt. So get started on your saving and make it a habit. It doesn’t matter if it’s small at first; just start.

If you are having trouble finding “extra” money to save, check out How do you save when you have very little to start with. Or, contact LSS at 888.577.2227 for your free financial counseling session. A counselor will create a realistic budget with you and help you determine how to save more. If you’d prefer, you can also GET STARTED ONLINE.

Author Katie Eastman is a Certified Financial Counselor with LSS Financial Counseling and she specializes in budget, credit, and debt counseling.

I’m married and besides my spouse, I’ve had 2 separate roommates over the years. One stayed in an extra room for about a year and the other for about 3 years. If you’re thinking about getting a roommate to increase income, here are the pros and cons to weigh first.

Pros:

Increased income

More disposable income

Ability to build emergency savings or save for a goal

Motivation to maintain a clean house

Extra help around the house

Cons:

No real privacy (unless you have separate living quarters for them)

Possible tension or arguments between you and the roommate and/or your spouse

Long-term effects on your relationship(s) if it doesn’t go well

Waiting to use the bathroom

Increased utility bills

Another mouth to feed

Potential tax ramifications (*check with your tax preparer or the IRS website for info on this)

These might not all be accurate depending on who is staying with you. If it’s a close family member, you may find yourselves sharing food. But if it’s a friend or extended family, they may be responsible for their own meals. Also, even though the ‘Cons’ list is longer, if the point is to increase income most of the cons may be well worth it. especially if the money is needed sooner rather than later.

Tips for Getting a Roommate

So you’ve decided to get a roommate. Here is my advice…and remember I’m speaking from extensive experience so this is real talk.

1. Set Ground Rules

Decide on a fair rent amount

And if s/he is going to stay long-term, I encourage you to implement an annual increase of what you think is fair. Inflation is a real thing and it does make a difference especially if it’s not planned for.

Clarify what rent will cover

Does rent include food, utilities, laundry soap, garbage bags, or toothpaste/other toiletries? Decide on this ahead of time otherwise you’ll find yourself cursing out your roommate for using all of the laundry detergent without telling you it’s empty. Which brings me to the next tip…

If it’s empty, tell someone

If you’re all sharing the laundry detergent (just as a random example), milk, garbage bags, or whatever else is shared, and you’re in charge of buying it, make sure they know to tell you when it’s getting low.

Be honest/have roommate meetings

This may not be enjoyable, but it needs to happen. Trust me. Whether it’s monthly, quarterly or semi-annually, sit down with everyone together and talk about how things are going. They might not even realize that they’re in the bathroom at the exact wrong time every Wednesday night unless you say something. And you don’t have to wait for those meetings, but at least there’s a set time for everyone to talk if it’s needed. Either way, when something is bothering you (or them), make sure it’s okay for both sides to tell each other.

Determine if household chores are included

This is important because if you are cleaning up after the person, you may find yourself frustrated a lot. This also includes pets. If you’re allowing a dog or cat of theirs in your place, make it clear that they’re responsible for cleaning up after it. (Just an FYI that it’s gross enough cleaning up after your own dog, let alone someone else’s dog. Been there, done that.)

Create clear expectations and/or draft a lease

Getting a roommate is a great way to increase income, if expectations are clear from the beginning.

Be clear on what will happen if expectations aren’t met. For instance, if you’re supposed to take turns doing dishes, but you always end up doing them, what happens? Will they pay you a little bit more in rent moving forward or take over another chore of yours? If it helps, draft up a lease. It doesn’t have to be something extensive, but IF something goes wrong, it’ll be much easier to remind them what they agreed to…and that it’s in writing.

What happens if they miss a rent payment?

Awkward. They’ve agreed to pay you by the 1st of the month…it’s the 5th and you keep getting that promise from them that they’re going to pay you soon. Before they even move in, be clear about what will happen if they don’t pay you on time and/or by a certain date. Try to plan the due date around their pay date as well to avoid this from happening. If you don’t care about the  money that’s a different story, but if this is non-negotiable, then they need to know what happens if they don’t pay…do they need to move out in 30 days? That’s up to you, but again make sure they know up front.

2. Pick an End Date

Although it could change down the road, choose a mutually agreed upon end date. And if you’re counting on the income, it’s helpful to ask them for 30- or 60-days’ notice…which again you could put in writing. If you’re counting on that money and it stops without notice, that could put you in a tough spot. If you initially decide on a year and you both want to extend it, talk about it early. Or if you know that a year is long enough, be sure to tell them with enough time for them to find a place.

For other helpful tips, read Should I lend money to my adult child? and Ideas for Increasing Income.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

It’s National Retirement Planning Week 2017! We’ve published a variety of posts on retirement and this week we’re flashing back to Ashley’s post: Can Debt Derail Your Retirement Plans?. 

As a bonus to this post, click the link to RetireOnYourTerms.org for retirement calculators and other helpful tools. Start planning for retirement as early as possible and if you haven’t yet, get started now!

The answer is…absolutely.  When thinking about retirement planning most of us focus on saving.  We think about how much we are saving, how we are investing, and day dream about how to spend our golden years.

Unfortunately, not enough time is spent thinking about how the debt we are accruing now can impact our future.

Recent studies done by Demos and Harvard University’s Joint Center for Housing Studies (JCHS), show that older Americans are still carrying high levels credit card and mortgage debt into retirement.   Just like high student loan debt can force younger adults to put off a milestone like buying a home or starting a family, mortgage and consumer debt can be just as devastating for seniors planning to retire.  With the lower fixed income that often comes with retirement, significant debt payments can push back a planned retirement age WAY down the road.

Here are 4 tips to help you take back control of your financial future and stay on track for retirement:

1.) Avoid using equity in your home to “pay off” debt.

Refinancing or taking out a home equity loan can seem like an effective way to get rid of debt.  However, when you tap your equity to deal with debts you are not really “paying off” anything.  You are simply moving debt from one place to another and at the same time increasing your housing costs well into the future.  As home values then increase, it’s easy to get into the habit of using equity again and again over the years. But that habit will leave you with no equity and a high mortgage payment that may not be affordable in retirement.  If credit card debt is creating a problem for your finances get all the information about your options from a certified financial counselor.

2.) Got unsecured debt? Get on a plan!

Don’t let your debt decide when you retire. Meet with a financial counselor who can talk with you about all of your options.  They will help you create a workable budget with a plan of attack to conquer your debt and create emergency savings in order to avoid dependence on credit in the future. One great option is a Debt Management Plan (DMP). So for example, if you’re planning to retire in 5 years, you could start a DMP now and with on time, monthly payments your credit cards would be paid off by the time you retire (5 years or less)!

3.) Don’t take on debt for others or put yourself in a tough financial position to help others.

Helping family members financially can be a very difficult decision to make. Here are questions to ask yourself when deciding whether or not to provide financial help.

• Do I have to put myself in debt (or more debt) to help? If yes, will you have to delay retirement if you take on more debt…and is that worth it?
  Is this a debt that I feel comfortable repaying if the person I am taking it out for is not able to? A simple rule to follow is that if you can’t afford the payment yourself, don’t take out the debt for someone else or co-sign for a loan.
• Am I putting my finances at risk if I help? If yes, think carefully before offering help. What are the risks and consequences?

4.) Simplify.

As you approach retirement, start selling or donating items that you no longer need or want. Maybe you even decide to downsize your home. Getting rid of debt can provide freedom in many ways. Watch Rod and Bonnie’s story to learn more.

So when think about retirement planning, think about what is TRULY important to you…and how you want to spend your golden years.

Author Ashley Hagelin is a Financial Counselor at LSS Financial Counseling who specializes in Reverse Mortgage and Foreclosure Prevention Counseling. Give us a call at 888.577.2227 to connect with a counselor for your free session today. We will provide options for you to conquer your debt and get on the path to retirement. Click to GET STARTED ONLINE at your convenience.

So you’re going along fine paying your student loans. You can afford the payments and just need to wait it out until the loans are finally paid off. However, there may be other aspects regarding your student loans and general finances you aren’t aware of that could help you right now. Here is what LSS’s student loan counseling can help you with:

1. Consolidation

   If you have multiple loans you may be able to consolidate those loans so that they have the same interest rate…and sometimes a lower one at that. Plus, it’s a whole lot easier dealing with 1 monthly payment instead of multiple. And you may even get a little bit smaller payment to make that debt more affordable moving forward. LSS counselors will help you determine which loans you can consolidate and will help with the consolidation process.

2. Job-related loan cancellation

   If you are in a qualifying job and make 10 years of payments while working in that job, you may be eligible to have your remaining student loan balance cancelled. But you’re only eligible in certain repayments plans. Meeting with an LSS counselor is helpful so that you’re not trying to figure everything out on your own, including the required documentation.

3. Different repayment plans

   There are multiple repayment plans from income-based to standard to graduated. Our counselors will help you determine which is the best and most affordable plan for you.

4. Deferment or forbearance options

   Did you know that if you have a hardship come up that you may be able to temporarily stop making payments on your student loans?  Depending on what’s going on, our counselors can coach you on which is applicable to your situation. And they’ll be able to tell you if your loans will continue to accrue interest or not while in deferment or forbearance.

5. Realistic budget

   While most of us have an idea of what we take in versus what we spend each month, not having a budget can make financial stability tough. Plus some months fluctuate quite a bit depending on the time of year or periodic expenses that come up, like vehicle tabs or maintenance. LSS can help you create a realistic spending plan so that you’re more prepared for both on-going and unexpected expenses.

6. Better repayment option for credit cards

   More than half of Americans don’t have $400 in savings in case of emergency, which often leads to building up balances on credit cards. By meeting with an LSS counselor, you will come away with a plan to avoid using credit cards that you can’t pay off. Along with that, there is the Debt Management Plan that for most is the best and fastest way to pay off credit card debt. No to mention you’ll save a bunch of money in interest.

7. It’s FREE

   The best part about our student loan counseling service – besides our excellent counselors – is that it’s FREE. So give LSS Financial Counseling a call at 888.577.2227 for your free, confidential session. Let us help you make sure you’re on the right track to paying off your student loans in the best and fastest way possible for you.

Author Elaina Johannessen is a Program Director with LSS Financial Counseling.

April is Financial Literacy Month so we’re flashing back to Ashley’s post about 5 basic tips to achieve financial stability. 

According to the Federal Reserve, the average household carries about $7,149 of debt. However, that takes into account those who carry no debt. So if you look at the 39% of Americans that carry debt month to month on credit cards, the average debt jumps to over $15,000. A huge chunk of us have spent at least some time on the debt side of that equation. Want to make a change? Here are healthy habits you can start today that will put you back in control.

Look to the future

We are bombarded with thousands of ads a day telling us we could be happier, smarter, richer, cooler, sexier, and an all around better person if we just buy this or that. And, you better hurry because this is the biggest sale of the year and if you don’t act now…you will miss out! There is something exciting about feeling like you got something you “need” for a good deal! Just take a moment, step back, and focus on your future and your goals. When you are making financial decisions make sure that what you are doing keeps you on your path to success.

Play Offense

I know you have heard it a million times, but it’s for a good reason…establishing and maintaining savings is your number one defense against a dependence on credit cards. According to bankrate.com, only 1 in 4 Americans have adequate savings to cover 6 months of expenses. I am sure we would all want to have that nest egg, but for some it’s not that simple. With wages at a stand-still and increased expenses, savings can be a challenge. It is not easy and it won’t happen overnight, but you have to start somewhere. So why not start today?

Both periodic and emergency savings play a role in financial stability; so make sure you are giving some attention to both. Emergency savings are for when personal financial chaos happens (job loss, injury, illness, etc). This is what you would need to cover basic expenses for 3 to 6 months should you experience a loss of income. If you can eat it, wear it, or drink it…it’s not an emergency. Periodic savings are for the expenses you know are coming, but you may or may not know when or how much (car repair, appliance replacement, property taxes, etc.)

With your savings established, life’s surprises will have a much harder time catching you off guard. Here’s a hint: Keep your emergency and periodic savings in a different bank or credit union that you have your checking account. It will help you to avoid the temptation to dip into savings.

Be your own credit card

A lot of credit comes from the idea of buying now and over time with monthly payments that are easier to handle, as opposed to a big chunk for whatever a larger ticket item may be. When they toss in the 0% interest for a certain number of months…that is almost a deal you can’t refuse. However, if you are okay with making monthly payments towards something, then make them to yourself and set the money aside for the item that you want. Use the time that it takes collect the funds needed to do your research, compare products, and shop for deals. You will end up with the best buy for your money and you will never be charged fees or interest causing you to pay more. Bonus: you often get a discount on big ticket items when paying in cash, saving you additional money. Or, if you have perks on a credit card that you would like to use, you can buy the item on the card and immediately pay off the balance in full with the money you saved. That way, you reap the benefits at no additional cost.

Just because you can doesn’t mean you should

Living below your means comes with a tremendous amount of freedom. Getting tied down with the largest mortgage and/or car payment you can be “approved” for can be financially paralyzing. Then you add in the additional costs of home (utilities, taxes, insurance, and maintenance) and car (insurance, registration, gas, and repairs) ownership and you are now over budget. With no wiggle room you may find yourself being forced into more debt. Finances are the number one cause of stress. So do yourself a favor and keep your financial obligations manageable.

Keep at it

Like any healthy lifestyle change, you have good days and bad…but the important thing is that you keep your goals in sight and don’t give up. If you get off track, tomorrow is a new day.

Need to pay off some debt to get you closer to financial stability? Check out 3 steps to stop running in circles and start paying off debt.

If you want additional tips or advice to more quickly gain control of your finances and conquer your debt, call LSS at 888.577.2227. Our Financial Counselors are available to help you achieve your financial goals. So don’t wait – take action today!

Author Ashley Hagelin is a Certified Financial Counselor with LSS Financial Counseling and she specializes in Reverse Mortgage Counseling.

Just because you made a financial mistake in the past doesn’t mean you have to pay for it forever. That is of course as long as you’ve taken care of the issue and made sure that it’s showing up in your credit history correctly. By being proactive, you can ensure that those financial ghosts of the past won’t haunt you.

• Review your credit report to make sure everything is accurate. For instance, if you paid a debt/collection debt in full, be sure it’s reflected accurately on your report. Pull it from all 3 credit bureaus for free at AnnualCreditReport.com.
• Avoid debt collection scams. Collection debt is stressful enough, but if you fall victim to a scam it really can get worse. So click on the link to read the post about avoiding that type of scam.
• Rethink student loan repayment. Determine if you’re in the right repayment plan and if you are able to pay off your debt faster – and maybe even save money in interest. For one-on-one help with this, call LSS Financial Counseling for your free student loan counseling session at 888.577.2227.
• Take a careful look at credit card debt and your repayment plan. If you have credit card balances and you’re making monthly payments, make sure you’re not going to pay more than you need to. Check into a Debt Management Plan that will help you pay off your cards faster…and even save you money. Get started online with your free session to see what a DMP would look like for you.
• Beware of debt zombies. Do what you can to avoid accruing more debt because it can sneak up on you and build up to something unmanageable. Not to mention unpaid debt can turn into a financial and credit nightmare.

 LSS Financial Counseling equips and empowers people to conquer their debt, build savings, and achieve financial stability. Visit our website for information on how we can help you reach your financial goals.

We’re flashing back to Ashley’s post about how to save money when there’s seemingly nothing left at the end of the month.

There are many economic reasons for our lack of personal savings, but that doesn’t take away from the importance of having a safety net for unexpected expenses.  There is no doubt that living paycheck to paycheck puts you at risk of being one major illness away from bankruptcy.  Even one significant financial hiccup like a car repair or furnace issue could start a series of events that can spiral into missed payments, collection calls, payment penalties, and possibly foreclosure or bankruptcy.

Emergency savings can make the difference between financial stress and financial chaos. 

But how do you save money when there is nothing left over at the end of the month? The first step is so simple but many people honestly don’t want to know the answer. It can be scary and sometimes not knowing seems easier. I am here to tell you that you can do it! Start by establishing a budget. You need to know exactly how much is coming in each month and how much is going out. Once you know that number you can figure out if you need to make changes. Is there anything left over for emergency savings? If not, here are some out of the box ideas on how to jump start and maintain your emergency savings.

Clean house

Clean out your closets, garage, and basement. Take everything that you no longer need or want and sell these items in a garage sale or online.  You can do this with friends or neighbors to make it a little more fun!  You will give up a weekend but if it means a deposit into savings, and reclaiming some space in your home, it is worth your time. Or check out Ebay, Craigslist, Facebook Garage Sales or even listing items in your local paper. The old saying is “one man’s junk is another person’s treasure!” This is so true. So start cleaning.  Split your stuff into 4 piles: sell, donate, trash and keep. Trust me, you will feel so much better!

Use your skills

If you have a skill or a hobby that you love, why not use it to make some extra money?  Skills such as sewing, gardening, woodworking, party planning, housecleaning, organizing or decorating may seem simple but not everyone has your gifts.   Turn your hobby into a jobby!

Save what you save

Planning your meals, shopping from a list, and cutting coupons can really bring down your grocery bill.  Most stores give you receipts that show exactly how much your effort has saved you. Why not put that money into your savings?  It could end up rescuing your personal finances one day; what better use can your money have?

Pay yourself first

Don’t wait until the end of the month to see how much money you have left to put into savings.  The quicker you can sack that money into your savings, the less you will miss it.  Set up your direct deposit or automatic transfer to make your savings contributions immediate and effortless. Make sure that your savings commitment is reasonable – if you can only do $20 a paycheck then set it up that way.  Don’t bite off more than you can chew.

Out of touch out of mind

Keep your savings at a different bank or credit union than your checking.  This will make it harder to access the funds unless there is an actual financial emergency.

As a recap, start simple. Make your budget and know your numbers. Then start putting some of these ideas into action and begin building up your emergency savings. You won’t regret it!

Are you having trouble taking that first step?

Consider your options with LSS Financial Counseling–for free. Our certified counselors can help you develop a budget and a plan of action for an emergency savings based on your individual situation. Call us today at 877.577.2227 or get started online with your free financial counseling session. We are excited to work with you!

Author Ashley Hagelin is a financial counselor at LSS and specializes in Reverse Mortgage and Foreclosure Prevention Counseling.