16 Free Work From Home Courses & Resources

Trying to find free work from home courses? Would you like to learn how to work from home?

Today, I have a great list of free online courses, plus webinars and ebooks that will help you learn how to start your own home business.Free Work From Home Courses

If you’re looking to make extra income or a full-time living, working from home can be a great idea for you to learn more about. 

For me, I love being able to work from home. I have been working from home for over 7 years now, and I wouldn’t change a thing!

Many people enjoy working from home for reasons such as eliminating your commute, making extra money from home, being your own boss, having a more flexible schedule, and so on.

Also, around 50% of U.S. businesses are now based at home, and that number is expected to to grow.

There are lots of valuable paid online courses for work from home jobs, but if you’re not sure about an idea, you might not want to invest any money just yet.

That’s why free courses and guides are a great way to learn.

In fact, I learned how to start my business by first taking free courses. Since I wasn’t sure what I was doing when I started this blog, I didn’t want to spend money that I didn’t have just yet. I wanted to wait until I felt more comfortable and sure that blogging was what I wanted to do.

You can learn more about each of these online business ideas, figure out what is needed in terms of skills and education, the amount of money you can make, and so on. You get to test these ideas a little bit before you invest a lot of time and money, which is very nice.

Here is a quick list of the free work from home courses and resources that I’m sharing in today’s article:

  1. Sell on Amazon Starter Course
  2. Selling Printables on Etsy Ebook
  3. How To Start a Blog Course
  4. Build A Voiceover Action Plan From Scratch Minicourse
  5. Start An Online Advertising Business From Scratch
  6. Start Your Virtual Bookkeeping Business
  7. Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days
  8. General Transcription Mini-Course
  9. Become a Proofreader 76 Minute Webinar
  10. Court Transcript Proofreading Mini Course
  11. Podcast Virtual Assistant Workbooks
  12. Make Money Writing Romance Novels ecourse
  13. Pinterest Virtual Assistant Training Workshop
  14. Jumpstart Your Virtual Assistant Business
  15. Self-Publishing Your First Book
  16. FREE Intro to Scoping Mini-Course

In the article below, I will be talking further about each work from home business idea and the free work from home courses or resources available for them.

Here are 16 free work from home courses and resources.

 

1. Sell items on Amazon.

The first year that my friend Jessica ran her Amazon FBA business, working less than 20 hours a week total, she made over $100,000 profit.

This free course shows you how to start a profitable Amazon business in a 9-part video course. You’ll learn:

  • The exact steps to follow to set up your Amazon Seller account
  • Two easy and affordable ways to find items to sell
  • How to choose profitable inventory that customers actually want to buy

If this is one of the free work from home courses you’re interested in, click here to learn more and sign up for the FREE Amazon FBA Starter Course!

 

2. Sell printables online.

Did you know that you can earn a living by selling printables online?

Creating printables on Etsy can be a great side hustle because you just need to create one digital file per product, which you can then sell an unlimited number of times.

Printables are digital products that customers can download and print at home. Examples include grocery shopping checklists, gift tags, candy bar wrappers, printable quotes for wall art, and patterns.

You can sign up for this free ebook that helps you figure out where to start when it comes to selling printables on Etsy.

 

3. Create a blog.

Blogging changed my life for the better, and it allows me to earn thousands of dollars a month, all by doing something that I love.

Blogging has allowed me to save up enough money for early retirement, to travel full-time, have a flexible schedule, and more.

Here’s a quick outline of what you will learn in this free course:

  • Day 1: Reasons you should start a blog
  • Day 2: How to determine what to blog about
  • Day 3: How to create your blog (in this lesson, you will learn how to start a blog on WordPress – my tutorial makes it very easy to start a blog)
  • Day 4: How to make money blogging
  • Day 5: My tips for making passive income from blogging
  • Day 6: How to grow your traffic and followers
  • Day 7: Miscellaneous blogging tips that will help you be successful

You can easily learn how to start a blog with my free How To Start a Blog Course.

 

4. Voice over act.

A voice over actor is the person you hear but rarely see on YouTube videos, radio ads, explainer videos, corporate narration, documentaries, e-learning courses, audiobooks, TV commercials, video games, movies, and cartoons.

In 2014, Carrie Olsen replaced her salaried day job to become a full-time voice over actor. People are constantly asking her how she got her start and how they can too.

So, she created Build A Voiceover Action Plan From Scratch Minicourse – This free course will help you learn about becoming a voice over artist, even if you’re brand new!

 

5. Manage Facebook advertising for local businesses.

This is a skill that you can learn without any prior experience in marketing or advertising.

The going rate for Facebook Ad management is $1,000 – $1,500 per month, per client.

This free webinar will teach you:

  • How one client can earn you $1,000 to $2,000 per month
  • Where to find Facebook ads clients

And more!

You can sign up for free at How To Manage Facebook Ads For Clients & Build Your Own Online Marketing Business.

 

6. Become a bookkeeper.

A bookkeeper is someone who tracks the finances of a business. They may handle payroll, billing and invoicing, etc.

And, you can learn how to become a bookkeeper without being an accountant or having any previous experience.

This free resource will teach you more about running your own virtual bookkeeping business. You’ll learn:

  • Is a bookkeeping business for you?
  • What exactly is a bookkeeping business? What kind of work do they do?
  • How much money can you make as a bookkeeper?
  • How do you find clients?

You can sign up for free at Start Your Virtual Bookkeeping Business.

 

7. Flip items for resell on eBay, Craigslist, and more.

Have you ever found something that you thought you could resell to make some money?

I’m sure you’ve thought about it in the past. I know that I have!

My friend Melissa’s family earned $133,000 in one year by buying and selling items that they’ve found at thrift stores, yard sales, and flea markets.

Some of the best flipped items that they’ve sold include:

  • An item that they bought for $10 and flipped for $200 just 6 minutes later
  • A security tower they bought for $6,200 and flipped for $25,000 just one month later
  • A prosthetic leg that they bought for $30 at a flea market and sold for $1,000 on eBay the next day

This is one of the home business ideas that anyone can start because you can start off selling things in your own house – I know we all have lots of stuff in our home that we could stand to get rid of. Then once you get a feel for the work, you can start purchasing items to resell.

I know quite a few people who have been flipping items for resale successfully for years!

You can sign up for the free webinar at Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days.

 

8. Transcribe audio or video into words.

Transcription is when you turn audio or video content into a text document. You listen to what’s being said and type it up into a text format.

There are many businesses looking for transcriptionists too – since general transcriptionists convert audio and video to text for virtually any industry, there really isn’t a typical client. Some examples include marketers, authors, filmmakers, academics, speakers, and conferences of all types.

Beginning transcriptionists earn around $15 an hour, and it increases from there.

In this free course, you will learn:

  • What it takes to become a transcriptionist
  • How much you can earn as a transcriptionist
  • How you can find transcriptionist work

You can learn more in the Free General Transcription Mini-Course. This is one of the free work from home courses that can introduce you to a very flexible side job.

 

9. Become a proofreader.

Have you ever read an obvious mistake and wanted to fix it?

Proofreaders look for punctuation mistakes, misspelled words, lack of consistency, and formatting errors.

You take content that other people have written and then go over it with a fine-tooth comb. You might be proofreading blog posts, print articles, academic articles, website copy, ad copy, books, student papers, emails, and more.

In one year, my friend Caitlin made around $43,000 by working as a freelance proofreader.

In her free 76-minute workshop, you will learn:

  • Common questions about becoming a proofreader
  • How to become a proofreader
  • 5 signs proofreading could be a perfect fit for you

You can sign up for free at Transform Your Passion for Words & Reading into a Thriving Proofreading Business in as Little as 30 Days.

 

10. Become a court transcript proofreader.

Becoming a court transcript proofreader is a more focused version of the last idea.

Court reporters also use court transcript proofreaders because of the importance of this type of work.

There is more training that goes into becoming a court transcript proofreader, and that is why I separated it from the general proofreading workshop above.

Caitlin, mentioned above, also has a great FREE 7-day course just for people who are interested in becoming a court transcript proofreader.

 

11. Become a podcast virtual assistant.

There’s a big demand for podcast virtual assistants right now due to there being over 800,000 podcasts. And, that number just continues to grow like crazy!

While the podcast host is responsible for recording themselves, other tasks like editing and publication take time, so many podcasters outsource their work to freelancers or virtual assistants. Also, some podcasters may not know how to do those things, or they may choose to focus their time on other areas.

In this free resource you will learn:

  • A list of the top podcast skills that businesses need help with
  • A custom podcast production checklist that the instructors use with all of their clients

And more!

You can sign up here for free workbooks and checklists that will tell you more about how to become a podcast VA. 

 

12. Write romance books.

My friend Yuwanda has found one of the most interesting home business ideas – she writes romance novels, and in one month, she was able to make over $3,000!

In this free course, you will learn:

  • How to get over your fear of not being a good writer
  • The technical side of self-publishing
  • How she got started writing her first romance novel

And more!

Learning to become a romance writer is by far one of the most interesting free work from home courses. If you’re interested, you can sign up for free at Make Money Writing Romance.

 

13. Help businesses on Pinterest.

Do you enjoy spending time on Pinterest?

Businesses are always looking for Pinterest virtual assistants.

Pinterest virtual assistants help businesses with tasks such as:

  • Designing Pinterest images for a website
  • Helping business owners set up their Pinterest account
  • Scheduling pins because this can be time consuming for the average business owner
  • Brainstorming a marketing plan

Click here and click on “Free Training Workshop” to learn how to become a Pinterest virtual assistant and find your first client. In this free course, you’ll learn what you need to do to get started, what services to offer, and how much to charge as a Pinterest virtual assistant.

 

14. Help businesses as a virtual assistant.

Virtual assistance is a field that is growing very quickly and is one of the most popular online business ideas, as you’ve seen with some of the niche VA courses I’ve already mentioned.

Virtual assistant tasks may include social media management, formatting and editing content, scheduling appointments or travel, email management, and more. Basically, you can get paid to do any task that needs to be done in someone’s business, but doesn’t need to be done by them.

If you are looking for free work from home courses for virtual assistants, then, I recommend checking out Jumpstart Your Virtual Assistant Business. In that link, you’ll receive a free worksheet and workbook that will help you decide what virtual assistant services you can offer (there are over 150 choices!).

 

15. Write your own eBook.

Writing your own eBook is a great way to make money from home, and there is probably something super helpful that you could write about (even if you think otherwise!).

In fact, my friend Alyssa self-published her first book and has sold more than 13,000 copies.

She is now earning a great passive income of over $200 a day from her book ($6,500 in one month alone!).

In this free resource, you will learn:

  • What it takes to publish a book
  • The strategies used to launch a book
  • Writing tips

And more!

You can sign up for free at Self-Publishing Your First Book.

 

16. Become a scopist.

A scopist is someone who edits legal documents for court reporters. A typical salary for an average scopist is around $30,000 to $45,000 per year.

In this free course, you will learn:

  • What is scoping? What does a scopist do?
  • What about finding clients and marketing?
  • What’s the earning potential?
  • What do I need to get started?

If you are looking for free online job training courses about becoming a scopist, I definitely recommend you click here to sign up for the free How To Become a Scopist course.

 

Which course is best for working from home? What can I learn at home for free?

As you can see, there are many different free work from home courses that can help you start your own home business.

The best work from home job will vary from person to person.

I recommend writing down the ones that interest you the most, and exploring those further by taking the free resources mentioned above, doing some online research, and even asking those in the industry how they like their job.

Again, below is a quick list of the free work from home courses and resources that I shared above:

  1. Sell on Amazon Starter Course
  2. Selling Printables on Etsy Ebook
  3. How To Start a Blog Course
  4. Build A Voiceover Action Plan From Scratch Minicourse
  5. Start An Online Advertising Business From Scratch
  6. Start Your Virtual Bookkeeping Business
  7. Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days
  8. General Transcription Mini-Course
  9. Become a Proofreader 76 Minute Webinar
  10. Court Transcript Proofreading Mini Course
  11. Podcast Virtual Assistant Workbooks
  12. Make Money Writing Romance Novels ecourse
  13. Pinterest Virtual Assistant Training Workshop
  14. Jumpstart Your Virtual Assistant Business
  15. Self-Publishing Your First Book
  16. FREE Intro to Scoping Mini-Course

Which free work from home courses are you interested in?

The post 16 Free Work From Home Courses & Resources appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com

What Is the Generation-Skipping Transfer Tax?

Woman works on her tax returnsEstate planning can help you pass on assets to your heirs while potentially minimizing taxes. When gifting assets, it’s important to consider when and how the generation-skipping tax transfer (GSTT) may apply. Also called the generation-skipping tax, this federal tax can apply when a grandparent leaves assets to a grandchild while skipping over their parents in the line of inheritance. It can also be triggered when leaving assets to someone who’s at least 37.5 years younger than you. If you’re considering “skipping” any of your heirs when passing on assets, it’s important to understand what that means from a tax perspective and how to fill out the requisite form. A financial advisor can also give you valuable guidance on how best to pass along your estate to your beneficiaries.

Generation-Skipping Tax, Definition

The Internal Revenue Code imposes both gift and estate taxes on transfers of assets above certain limits. For 2020, you can exclude gifts of up to $15,000 per person from the gift tax, with the limit doubling for married couples who file a joint return. Estate tax applies to estates larger than $11,580,000 for 2020, increasing to $11,700,000 in 2021. Again, these exemption limits double for married couples filing a joint return.

The gift tax rate can be as high as 40%, while the estate tax also maxes out at 40%. The IRS uses the generation-skipping transfer tax to collect its share of any wealth that moves across families when assets aren’t passed directly from parent to child. Assets subject to the generation-skipping tax are taxed at a flat 40% rate.

This tax can apply to both direct transfers of assets to your chosen beneficiaries as well as assets passed through a trust. A trust can be subject to the GSTT if all the beneficiaries of the trust are considered to be skip persons who have a direct interest in the trust.

How Generation-Skipping Transfer Tax Works

Generation-skipping tax rules cover the transfer of assets to people who at least one generation apart. A common scenario where the GSTT can apply is the transfer of assets from a grandparent to a grandchild when one or both of the grandchild’s parents are still alive. If you’re transferring assets to a grandchild because your child has predeceased you, then the transfer tax wouldn’t apply.

The generation-skipping tax is a separate tax from the estate tax and it applies alongside it. Similar to estate tax, this tax kicks in when an estate’s value exceeds the annual exemption limits. The 40% GSTT would be applied to any transfers of assets above the exempt amount, in addition to the regular 40% estate tax.

This is how the IRS covers its bases in collecting taxes on wealth as it moves from one person to another. If you were to pass your estate from your child, who then passes it to their child then no GSTT would apply. The IRS could simply collect estate taxes from each successive generation. But if you skip your child and leave assets to your grandchild instead, that removes a link from the taxation chain. The GSTT essentially allows the IRS to replace that link.

You do have the ability to take advantage of lifetime estate and gift tax exemption limits, which can help to offset how much is owed for the generation-skipping tax. But any unused portion of the exemption counted toward the generation-skipping tax is lost when you die.

How to Avoid Generation-Skipping Transfer Tax

Accountant prepares a tax return

If you’d like to minimize estate and gift taxes as much as possible, talking to a financial advisor can be a good place to start. An advisor who’s well-versed in gift and estate taxes can help you create a plan for transferring assets. For example, that plan might include gifting assets to your grandchildren or another generation-skipping person annually, rather than at the end of your life. Remember, you can gift up to $15,000 per person each year without incurring gift tax, or up to $30,000 per person if you’re married and file a joint return. You’d just need to keep the lifetime exemption limits in mind when scheduling gifts.

You could also make payments on behalf of a beneficiary to avoid tax. Say you want to help your granddaughter with college costs, for example. Any direct payments you make to the school to cover tuition would generally be tax-free. The same is true for direct payments made to healthcare providers if you’re paying medical expenses on behalf of someone else.

Setting up a trust may be another option worth exploring to minimize generation-skipping taxes. A generation-skipping trust allows you to transfer assets to the trust and pay estate taxes at the time of the transfer. The assets you put into the trust have to remain there during the skipped generation’s lifetime. Once they pass away, the assets in the trust could be passed on tax-free to the next generation.

This strategy requires some planning and some patience on the part of the generation that stands to inherit. But the upside is that members of the skipped generation and the generation that follows can benefit from any income the assets in the trust generates in the meantime. Trusts can also yield another benefit, in that they can offer asset protection against creditors who may file legal claims against you or your estate.

Another type of trust you might consider is a dynasty trust. This type of trust can allow you to pass assets on to future generations without triggering estate, gift or generation-skipping taxes. The caveat is that these are designed to be long-term trusts.

You can name your children, grandchildren, great-grandchildren and subsequent generations as beneficiaries and the transfer of assets to the trust is irrevocable. That means once you place the assets in the trust, you won’t be able to take them back out again so it’s important to understand the implications before creating this type of trust.

The Bottom Line

Man works on his tax returns

The generation-skipping tax could take a significant bite out of the assets you’re able to leave behind to grandchildren or another eligible person. If you’re considering using this type of trust to pass on assets or you’re interested in exploring other ways to transfer assets while minimizing taxes, it’s wise to consult an estate planning lawyer or tax attorney first.

Tips for Estate Planning

  • Consider talking to your financial advisor about how to best shape your estate plan to minimize taxation. If you don’t have a financial advisor yet, finding one doesn’t have to be complicated. SmartAsset’s financial advisor matching tool makes it easy to connect with professional advisors in your local area. It takes just a few minutes to get your personalized recommendations for advisors online. If you’re ready, get started now.
  • Creating a trust can yield some advantages in your estate plan. In addition to helping you minimize tax liability, the assets in a trust are not subject to probate. That’s different from assets you leave behind in a will.

Photo credit: ©iStock.com/ljubaphoto, ©iStock.com/baona, ©iStock.com/svetikd

The post What Is the Generation-Skipping Transfer Tax? appeared first on SmartAsset Blog.

Source: smartasset.com

Starting a Business With a Friend: 4 Things to Consider

The ultimate question: Could you and your friend make the perfect business duo? The answer may be more complicated than you think. You love spending time with your friend and the idea of becoming entrepreneurs together. Why not fulfill your dreams with each other? Companies like Airbnb and Ben & Jerry’s had success in this area — they all started from friendships.

But much more goes into starting a business with a friend. You may make great business partners, or you could wish you had taken your venture solo. Before making any financial decisions, analyze the pros and cons and ask hard questions. For example, will you equally invest? Who will take on which tasks and responsibilities? Sift through the easy and hard questions to see where your business friendship lies.

To help you and your friend make a confident and informed decision, skip to our flowchart or keep reading.

karen-gordon-quote

Questions to Ask Before Going Into Business With a Friend

Before jumping into your business plan, ask the hard questions. These can be tough to ask and answer, but they could save your friendship from a business relationship gone sour.

Question 1: Do You Share the Same Values?

Depending on your life stage and goals, your values could differ greatly from those of your potential business partner. You may appreciate living a relaxed lifestyle that gives you the financial freedom to do what you love, while others may value a fast-paced lifestyle filled with activities and long workdays. Differences in values could spark tension in your business relationship.

Ask yourself: Do you and your potential business friend have the same values? If so, great! If not, note your differences and if they’re worth working through.

Question 2: Do You Share the Same Business Goal?

To make sure you’re on the same page, schedule a brainstorming session with your friend. Map out your one-month, six-month, one-year, and five-year goals for your startup. Is your goal to make a certain amount of revenue? To hire a certain number of full-time employees? Or to take your business idea global?

If you have the same intentions, move on to question three. If any of your goals contrast, there may be trouble in paradise. See if you can work through your differences before investing your time and money.

Question 3: Do Your Skills Complement Each Other?

You and your friend each have your own strengths For example, you may be good at time management while your friend is better at sales. For skills you’re both lacking, think about how you’ll fill in the gaps. If you and your friend’s startup plan has a budget for hiring freelancers, or one of you has the dedication to learn something new, this may not be a concern. No matter what, especially if you’re bootstrapping your business idea, it’s essential to talk through it.

If you don’t compliment each other’s needed skills, who will step up and learn them?

Question 4: Do Your Career and Lifestyle Habits Align?

Depending on your business goals, this could be a make or break question for a professional partnership. For instance, one friend may be a morning person while the other’s a night owl. One can take over morning meetings and emails while the other’s responsible for evening website development and customer service.

If one friend’s lifestyle habits don’t suit the other, it may be best to opt for other business opportunities. While starting a business could adjust your habits, it’s easy to fall back into old ones from time to time.

baylie-carlson-quote

The Pros and Cons of Doing Business With Friends

Before entering any business arrangement, it’s reassuring to weigh the pros and cons. Could your new business idea benefit or hinder your future relationship and career?

Pros: You Have a Friend Through the Ups and Downs

Starting a business with a friend is similar to marriage — you’re there for each other through the good and bad. Whenever you’re having trouble, you know who you can go to for help. And you’ll be able to do most tasks together. For example, approaching investors as a team vs. going solo could put your nerves at ease.

Cons: You Know the Same People

Instead of getting together for your weekly catch-ups, you could spend all day together! While this can be exciting, it can also be hard to leave work at work. When you both hang out with the same people, there may be little room to disconnect from each other and your business.

Pros: You Understand Each Other’s Strengths and Weaknesses

You likely already know how each other operates and your strengths and weaknesses. Instead of learning the way a new business partner functions, you already have the upper hand. On day one, you and your partner could delegate tasks that fit everyone’s strengths best.

Cons: Your Friendship Could Turn Strictly Business

Your current friendship can be hard to separate from your new work partnership. Taking your work too seriously could stiffen your current relationship. Even after your work’s done, “friend” time may slow down. To have the best of both worlds, over-communicate throughout your entrepreneurial adventures.

mike-falahee-quote

Pros: You Feel Comfortable Communicating

You may have been friends for months, years, or even decades. Having a strong friendship foundation helps bolster your communication in the workplace. Plus, you most likely know how your friend may react to a situation gone wrong. Take note of your friends’ communication habits and foster them throughout your business relationship.

Cons: It’s Easy to Let Emotions Get the Best of You

Be careful not to let your emotions dictate your business decisions. A situation could happen in your friend group that makes its way into the office. To avoid any personal matters in the workplace, come to an agreement — no drama. If situations arise, take some time off to clear your mind, rest, and come back more motivated and inspired.

Pros: You Get to Spend More Time With Each Other

You get to spend countless hours talking and doing business activities together. You could spend all day tackling business tasks and wrap up the workday chit-chatting about your lives. It’s an amazing opportunity to spend more time with your friend without letting other responsibilities slip through the cracks.

Cons: Friendship Failure Could End in Financial and Business Failure

When tension builds in the workplace, it could damage your business outcomes. Not wanting to attend a meeting with your partner could halt business productivity, or worse, end it. To avoid losing profits on your friendship and investments, you should both outline an exit plan if things go wrong.

Tips for Starting a Business With Your Friend

Before toasting to your other half and investing in your passions, properly prepare yourself. Show up to your new business like you would a new job. Have your plan documented before building your business empire.

1. Nit-Pick Your Business Plan

Small issues could grow months or years after starting your business. To avoid future problems, talk through small and large inconsistencies with your partner. Having different lifestyle habits may not be an issue now, but could be difficult after a year of working together.

2. Communicate Often

About one third of projects lack proper communication. Avoid project or business failure by finding a communication method that works for you and your partner. Daily catch-up meetings or weekly email updates are a few examples. Make it enjoyable by sipping your favorite coffee or eating your lunch while playing catch up.

3. Establish and Honor Boundaries

Eliminate tension in the workplace by setting a rubric for working hours. Avoid talking about personal matters until you step away from your work tasks. If you and your partner need to establish additional boundaries, clearly outline them as they come up.

4. Make it Official With Contracts

Once you’ve worked through any complications, put it all in writing. If things were to go wrong, documents and written statements can be referenced in court. To do this, contact a lawyer and draft up a business plan. Any business promises you make should be in writing for any miscommunications. Compensation rates, profit shares, investment contributions, and business accounts are a few things that should be listed on this document.

Before investing your time, energy, or money into your startup dreams, make sure you’re fully prepared. Could you and your friend be great business partners? Take our quiz below to find out. Don’t forget to keep track of your budget and investments throughout the startup process.

Starting a Business With a Friend: 4 Things to Consider appeared first on MintLife Blog.

Source: mint.intuit.com

Debt is a Four Letter Word

This page may include affiliate links. Please see the disclosure page for more information. For most of my adult life, I never really considered debt a four letter word. You know the type I mean. Those coarse, offensive type you start using as a teenager to act cool around your friends. I always viewed debt as a necessity, a…

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How to Stop Using Credit Cards

The post How to Stop Using Credit Cards appeared first on Penny Pinchin' Mom.

The reason most people are in debt is due to credit cards. These little pieces of plastic tempt you with high limits and low payments.  They are simple to use and often a hard habit to break.  You have to teach yourself how to stop using credit cards and end the cycle of more debt.

credit card debt

According to the Federal Reserve, Americans have accumulated $992 billion in credit card debt (as of November 2016).  While many people pay them off every month, there are thousands of others who do not.

They just pay the minimum and then continue to use the cards, resulting in increasing debt. If you are serious about wanting to get out of debt, you have to take steps to stop using your credit cards and racking up more debt.

Read More:

  • Why Your Credit Score Matters and How to Increase It
  • How to Pay off Credit Card Debt
  • The Five Mistake People Make When Getting Out of Debt

HOW TO STOP USING CREDIT CARDS

UNDERSTAND WHY YOU SHOP

It is so easy for someone on the outside looking in to tell you to stop spending. However, if it were that simple, you would have quit long ago, right? Before you can stop spending, you have to know why you are doing it.

Your reason could be to replace something missing in your life. It might be the high you get from spending. Your logic is not wrong. It is your own.

Once you understand why you shop, you can then start to work on that, and in turn, your desire to buy as much can slowly fade as well.  Knowing the reason why is one of the first things you must do finally break the cycle of credit card debt.

Read more:  Why you continue to overspend

 

CUT UP THE CARDS

I know that this is pretty extreme, but the truth is that it works.  If you do not have cards to use, you can’t rack up additional debt.

If you are nervous about getting rid of them altogether, put them on ice.  Literally. Put your credit card in a bowl of water and freeze it.  When you feel you need your card, it will be more challenging to get to, and the urge to use it may pass more quickly.

 

USE ONLY CASH

One thing that goes hand-in-hand with cutting up the credit cards is sticking with cash.  That doesn’t mean a debit card.  It is using paper money.

When you use cash, you have to think twice about what everything costs.  When the money is gone, you can’t spend any more.

When you use a debit card, you can still spend more than you intend.  That is never the case with cash.

If you have $100 to spend with cash, you can not make a purchase that is $105.  But, with a debit card, you still can.

It is far to easy to swipe plastic.

Read more:  Setting up and using a cash budget

 

SET UP REWARDS

A simple trick to sticking to not using your cards is to set up milestone rewards.  For instance, if you can go one week without using your card, allow yourself an extra coffee the following week.

As you reach more and more milestones, such as paying off a card, going six months without using plastic, etc., set up small rewards for yourself.  Just make sure that you never cover the cost of your reward by using your credit card!!

 

CREATE A VISION BOARD

If you want to stop using credit cards and pay off your debt, it is helpful to have a goal in mind.  It may be to afford the new car you want or buy a home. It might even be to live without feeling so much stress.

Whatever your reason, create a vision board.  When you have a clear vision of what will happen when you reach your goal, the more likely you are to stay on track.

 

GET AN ACCOUNTABILITY PARTNER

The best way to stop is to have someone to help keep you on track.  An accountability partner can do just that.

If you are in a relationship, you will be accountable to your partner (of course).  However, if you both have a difficult time not using credit, you might want to look beyond yourselves.  Find another couple who is in the same situation as you are and become accountable to one another.

However, if you are single, then it may be a bit more challenging to find someone.  Reach out to friends and family to find someone with whom you can connect and help one another.

 

TRACK EVERY PURCHASE

When you have a cash budget, you get into the habit of doing this.  However, if you are not ready to make that leap, start tracking every purchase you make.

Sometimes, seeing where you spend your money can be enough to make you want to throw the credit cards away for good.

Read more:  How to track your spending

 

MAKE SURE YOU BUDGET WORKS

You absolutely must have a budget.  There is no way to get around it.  But, more than just a budget, it needs to be a budget that works.  Sit down and go back over your budget to see where you may be spending too much and see if you can find ways to make improvements.

Also look carefully at how much money you spend on credit card debt each month.  Imagine what you could do with that money if you did not have to send it away to someone else.

Read more:  How to create a budget that works

 

Put some simple strategies to work and you’ll stop using credit cards and can get in control or your money.  Finally.

stop using credit cards

The post How to Stop Using Credit Cards appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

Repossession Credit Scores: What You Need to Know

One of the harsh truths of secured loans is that your asset can be repossessed if you fail to make the payments. In the words of the FTC, “your consumer rights may be limited” if you miss your monthly payments, and when that happens, both your financial situation and your bank balance will take a hit.

On this guide, we’ll look at what can happen when you fall behind on your car payments, and how much damage it can do to your credit score.

What is a Car Repossession?

An auto loan is a loan acquired for the sole purpose of purchasing a car. The lender covers the cost of the car, you get the vehicle you want, and in return you pay a fixed monthly sum until the loan balance is repaid.

If you fail to make to make a payment or you’re late, the lender may assume possession of your car and sell it to offset the losses. At the same time, they will report your missed and late payments to the main credit bureaus, and your credit score will take a hit. What’s more, if the sale is not enough to cover the remainder of the debt, you may be asked to pay the residual balance.

The same process applies to a title loan, whereby your car is used as collateral for a loan but isn’t actually the purpose of the loan.

To avoid repossession, you need to make your car payments on time every month. If you are late or make a partial payment, you may incur penalties and it’s possible that your credit score will suffer as well. If you continue to delay payment, the lender will seek to cover their costs as quickly and painlessly as possible.

How a Repossession Can Impact Your Credit Score

Car repossession can impact your credit history and credit score in several ways. Firstly, all missed and late car payments will be reported to the credit bureaus and will remain on your account for up to 7 years. They can also reduce your credit score. 

Secondly, if your car is repossessed on top of late payments, you could lose up to 100 points from your credit score, significantly reducing your chances of being accepted for a credit card, loan or mortgage in the future. 

And that’s not the end of it. If you have had your car for less than a couple of years, there’s a good chance the sale price will be much less than the loan balance. Car repossession doesn’t wipe the slate clean and could still leave you with a sizable issue. If you have a $10,000 balance and the car is sold for $5,000, you will owe $5,000 on the loan and the lender may also hit you with towing charges.

Don’t assume that the car is worth more than the value of the loan and that everything will be okay. The lender isn’t selling it direct; they won’t get the best price. Repossessed vehicles are sold cheaply, often for much less than their value, and in most cases, a balance remains. 

Lenders may be lenient with this balance as it’s not secured, so their options are limited. However, they can also file a judgment or sell it to a collection agency, at which point your problems increase and your credit score drops even further.

How Does a Repo Take Place?

If you have a substantial credit card debt and miss a payment, your creditor will typically take it easy on you. They can’t legally report the missed payment until at least 30-days have passed and most creditors won’t sell the account to a collection agency until it is at least 180-days overdue.

This leads many borrowers into a false sense of security, believing that an auto loan lender will be just as forgiving. But this is simply not true. Some lenders will repo your car just 90-days after your last payment, others will do it after 60 days. They don’t make as many allowances because they don’t need to—they can simply seize your asset, get most of the money back, and then chase the rest as needed.

Most repossessions happen quickly and with little warning. The lender will contact you beforehand and request that you pay what you owe, but the actual repo process doesn’t work quite like what you may have seen on TV. 

They’re not allowed to break down your door or threaten you; they’re not allowed to use force. And, most of the time, they don’t need to. If they see your car, they will load it onto their truck and disappear. They’re so used to this process that they can typically do it in less than 60-seconds.

It doesn’t matter whether you’re at home or at work—you just lost your ride.

What Can You Do Before a Repo Hits Your Credit Score?

Fortunately, there are ways to avoid the repo process and escape the damage. You just need to act quickly and don’t bury your head in the sand, as many borrowers do.

Request a Deferment

An auto loan lender won’t waste as much time as a creditor, simply because they don’t need to. However, they still understand that they won’t get top dollar for the car and are generally happy to make a few allowances if it means you have more chance of meeting your payments.

If you sense that your financial situation is on the decline, contact your lender and request a deferment. This should be done as soon as possible, preferably before you miss a payment.

A deferment buys you a little extra time, allowing you to take the next month or two off and adding these payments onto the end of the term. The FTC recommends that you get any agreement in writing, just in case they renege on their promise.

Refinance

One of the best ways to avoid car repossession, is to refinance your loan and secure more favorable terms. The balance may increase, and you’ll likely find yourself paying more interest over the long-term, but in the short-term, you’ll have smaller monthly payments to contend with and this makes the loan more manageable.

You will need a good credit score for this to work (although there are some bad credit lenders) but it will allow you to tweak the terms in your favor and potentially improve your credit situation.

Sell the Car Yourself

Desperate times call for desperate measures; if you’re on the brink of facing repossession, you should consider selling the car yourself. You’ll likely get more than your lender would and you can use this to clear the balance. 

Before you sell, calculate how much is left and make sure the sale will cover it. If not, you will need to find the additional funds yourself, preferably without acquiring additional debt. Ask friends or family members if they can help you out.

How Long a Repo Can Affect Your Credit Score

The damage caused by a repossession can remain on your credit score for 7 years, causing some financial difficulty. However, the damage will lessen over time and within three or four years it will be negligible at best.

Derogatory marks cease to have an impact on your credit score a long time before it disappears off your credit report, and it’s the same for late payments and repossessions.

Still, that doesn’t mean you should take things lightly. The lender can make life very difficult for you if you don’t meet your payments every month and don’t work with them to find a solution.

What About Voluntary Repossession?

If you’re missing payments because you’ve lost your job or suffered a major change in your financial circumstances, it may be time to consider voluntary repossession, in which case there are no missed payments and you don’t need to worry about repo men knocking on your door or coming to your workplace.

With voluntary repossession, the borrower contacts the lender, informs them they can no longer afford the payments, and arranges a time and a place to return the car. However, while this is a better option, it can do similar damage to the borrower’s credit score as a voluntary repossession, like a traditional repossession, is still a defaulted loan.

Missed payments aside, the only difference concerns how the repossession shows on the borrower’s credit report. Voluntary repossession will look better to a creditor who manually scans the report, but the majority of lenders run automatic checks and won’t notice a difference.

Summary: Act Quickly

If you have student loan, credit card, and other unsecured debt, a repo could reduce your chances of a successful debt payoff and potentially prevent you from getting a mortgage. But it’s not the end of the world. You can get a deferment, refinance or reinstate the loan, and even if the worst does happen, it may only take a year or so to get back on track after you fix your financial woes.

Repossession Credit Scores: What You Need to Know is a post from Pocket Your Dollars.

Source: pocketyourdollars.com