How to stop wasting money and start a new life

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It can be scary as well as a painful situation to go through when you realize that your bank balance has drained out and that all you have been doing is wasting your money on unnecessary purchases. Worse, it can put you in heavy debt and can ruin your financial plans.

Not only that, you can become so weak and vulnerable that you would have to constantly pester your friends and relatives to borrow money. As a result, it can harm your relationships with your loved ones.

So, it’s about time that you reflect upon your actions and confront yourself that you may have been very callous about your spending behavior. Also, it is not the end of your life and you can find ways to fix the errors.

On a spiritual level, it can be that God wants you to think about how to start over in life with nothing! Therefore, you can now embark on a journey to find out how to begin your life on a new note. After all, it is the drive to earn money that will give you the edge to earn more and will bring your financial life into proper shape.

How can you avoid wasting money?

Keep track of your expenses

The first step you can take to save money is to find out how much you are spending. Keep track of all your expenses, from petty expenses like tea, coffee to household items, and cash tips. Once you have the information about your expenses in hand, organize the numbers categorically. Using your credit card or bank statements can be very helpful to analyze what you have spent in the past.

Prepare a budget

Once you have a brief idea of what your expenses are in a month, you can think about recording your organized expenses into a workable budget. Your budget must highlight how your expenses measure up to your income so that you will find it quite convenient to plan your spending and limit overspending. In addition to monthly expenses, be sure to factor in expense that occurs regularly but not each month, such as car maintenance.

Set a goal

If you begin by setting a goal for yourself, then you can definitely save lots of money. You may first begin by thinking that what it is that you wish to save for, it could be for a personal luxury asset you want to buy, planning a vacation, or saving for retirement. Then, find out how much money you will need and how long it can take for you to save it.

List your priorities

It depends on how you plan your savings which you can decide after calculating your income and expenses. Be sure to figure out your long-term goals; it’s necessary to realize that planning for retirement shouldn’t be postponed at a later stage. Learn how to turn your written goals into a planned activity so that you can achieve your desires. For example, if you are in need of a car in the near future, then you can start putting money right away to buy a new one.

Choose the right option

If your goal is to meet short-term goals, then consider using a savings account and a certificate of deposit. If your goal is long-term, then consider securities like stocks and mutual funds. Make sure whatever option you choose is FDIC insured.

Watch how your savings grow

Check your budget and watch the progress as it grows each month. This will not only help you stick to your personal savings but will also help in identifying and fixing the errors quickly. These simple techniques to save can also inspire you to save more money every day and hit the goals faster.

How can you start your life again once your finances have started collapsing?

Starting all over again is not that difficult. Obviously, there are risks involved and there are many doubts regarding the losses one can experience out of a bad investment strategy.  In addition to that, people have many things to say when you are running low. They can influence your decision-making skills and can practically put you down.

But you need not worry because over here we will suggest the ways in which you can win over and clear your obstacles.

1. Motivate yourself daily

First and the foremost thing you should refresh your mind and think about the ways in which you can gather the courage to start afresh. Read inspirational quotes that are available online or go for self-help books. Reading can definitely change your outlook and can directly impact your actions as well. The result is, you can turn out to be more productive than before, you can gather innovative ideas for your business ventures or personal investments.

2. Invest, invest, and invest

Yes, that’s how you can come out of your financial depression. If you don’t have cash then obtain it by selling your securities or personal assets. The money you derive from that can be utilized to invest in small business ventures or perhaps the stock market. Once you see that the capital money has multiplied, you can repeat the same process and make more money in the future.

3. Go for credit counseling

If you are in debt and wondering how to overcome it then you must go for credit counseling. When you opt for this, the experts will give their opinions on matters which can take you out of debt.

4. Consolidate your debts

Yes, having multiple debts can be really bad. It can seriously damage the future of your finances and can ruin your family life. You can opt for debt consolidation through which you can significantly reduce your multiple debt payments with one, and with time, shredding off your debt burden.

5. Work for an extra number of hours

Do not feel let down by a small defeat. You can still work and work harder to mend ways. Take it as an opportunity to increase your productivity and earn more cash. As a token of inspiration, always reward yourself to feel motivated. As you see more money, you will naturally feel that the hurdle is minimized.

6. Travel to gain positivity

Yes, traveling helps. It can wash away all the negativity and boost your energy. Going on a trekking experience or enjoying beachside fun with friends and family can bring harmony to your lives so that later on you can clearly focus on work-related activities.

7. Enroll in a meditation program

Lots of Americans are turning to the east to gather inner-peace. It is a good way to make your mind stronger. Not only that, it improves your health at the time of adversity. You can also feel rejuvenated once your mind is settled.

The final words

You may be having lots of questions about how to avoid wasting money or how can you think of starting life over after losing everything?.

You might feel depressed when your finances are not in good shape and you are striving hard to get out of it.  So, gather courage and solve your problems. Look for healthy solutions. They have already been stated in the article. You can use it as a reference to improve your financial situation.


How is the SOL clock different from the credit report clock?

Posted by: consolidatecreditcard_admin on

The SOL clock and the credit report clock are distinctly different from each other. Find out how in this article.

What is an SOL clock?

Would you believe me if I said that debt has an expiry date? Yes, it’s true. I ain’t joking. Debts are subject to the statute of limitations (SOL), which specifies how long a debt collector can sue you to collect any unpaid balance. Usually, it starts from the day of your first default on the debt.

The SOL clock ticks at a different pace depending on the following factors:

  • The state where you live in
  • The type of debt you have

How long does the SOL clock tick in all the states?

State Oral contracts Written contracts Promissory notes Open-ended accounts
Alabama 6 6 6 3
Alaska 6 6 3 3
Arizona 3 5 6 3
Arkansas 3 6 3 3
California 2 4 4 4
Colorado 6 6 6 6
Connecticut 3 6 6 3
Delaware 3 3 3 4
Florida 4 5 5 4
Georgia 4 6 6 6
Hawaii 6 6 6 6
Idaho 4 5 5 5
Illinois 5 10 10 5
Indiana 6 10 10 6
Iowa 5 10 5 5
Kansas 3 5 5 3
Kentucky 5 10 15 5
Louisiana 10 10 10 3
Maine 6 6 6 6
Maryland 3 3 6 3
Massachusetts 6 6 6 6
Michigan 6 6 6 6
Minnesota 6 6 6 6
Mississippi 3 3 3 3
Missouri 5 10 10 5
Montana 5 8 8 5
Nebraska 4 5 5 4
Nevada 4 6 3 4
New Hampshire 3 3 6 3
New Jersey 6 6 6 6
New Mexico 4 6 6 4
New York 6 6 6 6
North Carolina 3 3 5 3
North Dakota 6 6 6 6
Ohio 15 15 15 6
Oklahoma 3 5 5 3
Oregon 6 6 6 6
Pennsylvania 4 4 4 4
Rhode Island 10 10 10 10
South Carolina 3 3 3 3
South Dakota 3 6 6 6
Tennessee 6 6 6 6
Texas 4 4 4 4
Utah 4 6 6 4
Vermont 6 6 5 3
Virginia 3 5 6 3
Washington 3 6 6 3
West Virginia 3 10 6 5
Wisconsin 6 6 10 6
Wyoming 8 10 10 8

Debts fall into 4 categories. You need to know what type of debt you owe. Otherwise, it will be tough for you to determine the statute of limitations period for a particular debt. Keeping your concerns in mind, we have briefly described all 4 categories of debt here.

  1. Oral contracts: These are debts that were initiated based on a verbal agreement to pay back the money within a specific period.
  1. Written contracts: All debts that come with a written agreement fall into this category. The terms and conditions of a loan are mentioned in a written contract. A typical example is medical debt.
  1. Promissory notes: These are written agreements to pay off the debt in installments at a specific interest rate and within a particular debt and time. The typical examples are student loans and mortgages.
  1. Open-ended accounts: These are accounts with a revolving balance. You can borrow money from these accounts and then pay them off. But you have the option to borrow again. The biggest examples of open-ended accounts are credit cards, store cards, etc.

How can you restart the SOL clock?

The easiest way to restart the SOL clock is to acknowledge the debt. Let’s suppose a debt collector calls you and asks, “Do you admit you owe $5000 to us and you’re not willing to pay it?” and you say “Yes, I can’t pay the amount, but I agree I owe it.” This is considered a reaffirmation of the debt, and the statute of limitations period will restart again.

You can also restart the SOL clock by making a small payment on the debt.

Let’s suppose, you get a call from the debt collector. The person asks you to make a small payment on the time-barred debt. You send $20 to the debt collector and the SOL clock starts ticking all over again.

Can you get sued after the SOL clock has stopped ticking?

A debt collector can try to collect a debt even after the statute of limitations period has expired. Don’t ignore a legal notice even if it’s an old debt. Be present in court and state your side of the story. You can even consult a debt attorney to win the case. He can also file a lawsuit against you for collecting a time-barred debt. You have to inform the court that the SOL period has expired on the debt. This is your best defense against the lawsuit.

Several consumers don’t appear in court, which is a bad financial move. It helps the debt collector to win the case and get a judgment against the consumer.

What is a credit report clock?

The credit report clock starts ticking after you open a credit card account or borrow a loan.

If you use credit cards responsibly and make monthly payments on time, then the clock ticks for an indefinite time period. But when you default on your credit cards or loans, the credit report clock ticks for 7 years and 180 days from the date of your first default. For instance, if you made a late payment in May 2015, then it would come off of your credit report in May 2022.

In the case of Chapter 7 bankruptcy, the credit report clock ticks for 10 years. However, if you file for Chapter 13 bankruptcy, then the clock ticks for 7 years since you’re making an effort to pay off your debts within 3 to 5 years.

Find out how long the credit report clock ticks for other tradelines. Have a look at this table and see how long the information stays on your credit report.

How long does a credit report clock tick for different tradelines
1. Active account paid as agreed As long as the lender is reporting it
2. Closed accounts paid as agreed Up to 10 years
3. Late payments Up to 7 years and 180 days
4. Debt collection accounts Up to 7 years and 180 days
5. Chapter 7 bankruptcy Up to 10 years
6. Chapter 13 bankruptcy Up to 7 years and 180 days
7. Paid judgments Up to 7 years and 180 days
8. Unpaid judgments For 7 years but can be extended indefinitely
9. Foreclosure Up to 7 years and 180 days
10. Short sale Up to 7 years and 180 days
11. Repossession Up to 7 years and 180 days
12. Hard inquiries Up to 2 years
13. Paid tax lien Up to 7 years from the date government filed it
14. Unpaid tax lien Up to 10 years from the filing date

How is the SOL clock different from the credit report clock?

The credit report clock tracks how long information can stay on your credit report. The SOL clock determines how long creditors can sue you for your debts and garnish your wages. So both have different implications. The statute of limitations period has nothing to do with how long unpaid debts can stay on your credit report.

A time-barred debt can still appear in your credit report. For instance, the SOL period in Texas is 4 years for all kinds of debts. If 4 years have passed since the day of your first default, then the debt has become time-barred. A debt collector can’t garnish your wage now. However, the debt will stay on your credit report. It won’t be removed from your credit report before 7 years and 180 days.

The big question is how can you remove debt from your credit report after the statute of limitations clock has stopped ticking? The honest answer is you can’t. You have to wait for 7 years and 180 days. However, you can request your creditors to remove debts from your credit report on the basis of the good relationship you have with them. But this is an exceptional case.

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How is a credit report different from a credit score?

Posted by: consolidatecreditcard_admin on

You can’t afford to be nonchalant about the relevance of finance in today’s time. If you are a credit cardholder, have pending bills to make, debts to repay, and income statements to issue – it is imperative to be familiar with the various kinds of credit-related terms. For instance, do you know what a credit score is? Are you aware of the basic difference between credit reports and credit scores? Did you know that you can obtain a free credit report?

If you are confused between the two terms, you can be assured that here you will find a simple version of what is meant by credit report and credit score.

Features of a credit report

1. The credit report is informative

As the name suggests, a credit report contains all your detailed financial information such as the history of your debt accounts and the payments you’ve made. It consists of information about credit card payments, and a variety of loans such as home loans, automotive loans, and student loans.

In addition to that, it contains the status of those loans which are doubtful and are yet to be paid off.

2. The credit report is personal

A credit report also includes a wide range of personal information such as your name and address, business address, phone number, and several other information. The credit report which is registered under your name also has the detailed account details of your loan/credit card information of the loan taken, current balances, and information about whether or not you have paid the bills on time as well as the account in arrears. In a nutshell, a credit report records how well a person has kept up with his/her payment agreements with various current and previous creditors as well as the current balances on the account.

3. A credit report is diverse

In a credit report, a person can also get information about the listed inquiries that have been for new credit.

4. Your credit report won’t contain the credit score

Each of the three major credit bureaus – Equifax, Experian, and TransUnion, offer a free copy of the report once a year. It should be known to the user that the report is less likely to contain a credit score; so forget about depending on the report to obtain a credit score.

Features of a credit score

1. Credit score reveals the exact number

A credit score represents the statistical three-digit number between 300 and 850, which is generated on the basis of your credit report. It is generated from a person’s payment history, accounts owed, credit types, length of credit history, and types of credit.

2. Credit score is calculated

A credit score is calculated after scrutinizing the person’s debt against credit limit, history of debt repayments, number of accounts, type of accounts, the overall credit history, and several other financial information.

It is basically your financial report card.

3. A high credit score can be beneficial

If you have a high credit score, there will be a greater chance of taking out a new credit at lower interest rates. This will also impress lenders and they will be more than willing to sanction a person’s new credit request.

4. Your credit score contains your payment history

You ought to know that your payment history is a vital factor to consider while calculating your credit score. The credit bureaus also check past due accounts, for how long they are past due, whether or not the accounts are properly managed and if they contain any negative information.

What’s the major difference between credit reports and credit scores?

a. Credit reports are more insightful

Compared to a report, the credit score just gives a statistical indication of the number. If you have observed that your score has dropped, then the only way to determine the cause is through a credit report. A credit report gives details for things that could have caused the drop, like delinquency on payments or hard inquiries.

b. It is possible to get credit reports for free

In comparison, a credit score is usually not free of cost. Companies like American Express, Bank of America, and Chase provide customers with free FICO score monitoring. This includes an estimate of their score either online or in their monthly statements.

c. Employers can look at your credit report but not your score

Potential employers can look at your credit report with your permission. A credit report reveals a lot about your character. To a hiring manager, you may seem to have a lot more responsibility on the job or less of a risk for corporate crimes. It is estimated that nearly 47% of employers run credit checks to select job candidates. However, contrary to that, employers do not get to see your credit score when they are viewing the report.

d. Credit reports can disclose mistakes and identity theft

People often complain about the errors found in the credit report. A mistake can be something as silly as a typo or an incorrect credit limit. It could be something as serious as someone hacking into your account to rack up the debt in your name. To fix the error, you will have to contact the credit bureau and the company which reported the information.

e. Your credit score may change faster than your credit report

If you have subscribed to a credit score monitoring service, you will have an idea about the status of your score and that it can fluctuate frequently. It is due to the constant reporting of the creditors to the credit bureaus on a regular basis.

How can I access my credit report and credit score?

A credit report can be fully accessed by contacting any of the three credit reporting agencies. You can also visit the official website of the respective credit reporting agency and follow the instructions to proceed further. You will be told to file an online request form and send it along with a draft or cheque to cover the fees.

What is a good credit score?

A score generally ranges between 300-850; a credit score of 700 or above is normally considered good.

A word of advice you can follow while obtaining your credit report and score at least once a year, especially before applying for a new loan or credit card. Just to avoid making any errors, keep checking your credit reports regularly. Make it a habit to pay on time and limit your credit card usage by up to 30%.

Also, check your reports for any errors and dispute them immediately to get a good score. Ensure that your credit score doesn’t drop as compared to your average score.

How are they associated?

A higher credit score indicates that your creditworthiness is also high. The lower the score, the lender’s/creditor’s risk increases to grant your loan request. So, while your credit report comprises your entire credit history, your credit score is the total sum of the same.

If your credit score is within a certain range, your lender may offer a loan at a lower interest rate or provide you with a credit card with a higher credit limit, though all other terms and conditions might be the same.

Now that you have a clear understanding of your credit report and credit score, it’s time to go through your report and focus on improving your credit score. This will help you sort out the financial riddles of your life.