Dr. John Beckem: How To Eliminate Debt So You Can Start Investing & Building Wealth

In the segment below, Personal Finance expert Dr. John Beckem gives an overview of what it takes to eliminate your debt and put systems in place that will lead to wealth building that can be sustained from generation to generation.

You can sign up for the Debt Elimination Blueprint here:  https://goo.gl/enxAmi

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

 

 

Ask Dr. Beckem: How To Fix Horrible Credit Or Build Excellent Credit

By Staff Blogger

For a lot of people, buying a car or buying a home can be out of reach because they do not meet the requirements needed, usually because they have a low credit rating or maybe they have no credit at all. Nowadays, it is also not uncommon for employers to check the credit rating of a potential employee.  This makes it that much more important to either build a good credit rating or repair one that is not good.

In the video below, Dr. Beckem explains how to build an excellent credit score and also how someone who has a horrible credit score can learn new habits that will help them improve their credit score.

Dr Beckem’s book recommendations (affiliate):

 

Ask Dr. Beckem: I Want To Invest But I Have A Lot Of Debt – Can I?

By Staff Blogger

Many people assume that not having a high income means that investing is not something they can do. When they have high debt, the question of whether it is better to tackle the debt or plan for the future by investing tends to leave many people confused.

In the video below, Dr. Beckem breaks down how to handle high debt and make the best decisions about investing and saving.

[Question: How can one safely reduce credit card and student loans reasonably so they can save more and invest?]

Dr Beckem’s book recommendations (affiliate):

 

Why Losing A Job Would Devastate 80% Of People Who Work

By Dr. John Beckem

According to uscourts.gov, as of the twelve months ending June 2016, there were over 800,000 consumer bankruptcy filings with some of those being Chapter 13.

Families need help! We’re finding that being consistent throughout America. About 1 in 5 have enough saving in an emergency fund to cover less than three months of expenses. This means that if you lost your job and had no more money coming in, that you could only barely pay your bills for three months.

There’s actually a trend that’s showing that most people are living paycheck to paycheck. They don’t even have the three months. In fact, 72% feel the need to work after retirement and only 44 percent have actually tried to figure out how much they will need by the time they retire.

Simply put, a lot of people just don’t try to figure it out what it will take to cover their living costs after retirement. It’s overwhelming. They don’t want to think about it. They say: “I’ll cross that bridge when I get to it.”

That is an absolutely disastrous financial plan!

But don’t worry. There is hope. If you’re reading this article you’re here because you’re looking for some alternatives; some ways to get help. And there is hope. There is an alternative lifestyle to being stressed, being burdened, being frustrated, and in bondage to debt.

The Life After Debt Blueprint will equip you with the tools necessary to build generational wealth if you are committed to work hard, and determined to end your voluntary slavery to debt.

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Why You Must Cut Up Your Credit Cards Right Now

By Dr. John Beckem

Many people have credit cards they they never seem to be able to pay off.

Here’s the first step to getting rid of credit card debt:

Cut up your credit cards!

You need to pay off your credit cards and stop paying the 15 to 24 percent of daily compounding interest. On your credit cards, the interest compounds every single day!

On a mortgage, your interest will compound every 30 days. Some loans compound every 14 to 30 days with 30 days being the average. But your credit card is being compounded every single day. When you have a personal balance and incur interest, that interest now becomes part of your principal and this repeats every day.

If you must use plastic, as an example, for an airplane ticket, rental car, or online purchases, use your bank debit card that has a MasterCard or Visa logo. The protection that you’re offered is the exact same as if you had a regular MasterCard or a Visa. Both debit and credit cards offer a zero percent liability; meaning that all consumers who find themselves victims of card fraud will end up in the same place – their money will be refunded.

There’s a myth that says if you use your debit card with the MasterCard or Visa logo that you will be held liable for any fraud and that’s not the case.

If you use that card as a credit card, such as a Visa or a MasterCard, you have the same protection as a regular MasterCard or Visa. Onto the U.S. debt crisis.

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Why Student Loan Debt Is The Most Dangerous Debt

By Dr. John Beckem

Student Loan Debt is a serious issue for families in the United States. Currently there are $1.2 trillion dollars of Student Loan Debt outstanding. How can we combat this epidemic? We must look at the Now and the Future.

Now: What Do I Do?
If you are currently in student loan debt, there is hope but it’s going to be a long journey depending on the amount of your indebtedness. According to the Huffington Post, the average debt levels for graduating seniors with student loans rose to $29,400 in 2012 – a 25% increase from 2008. Private colleges average debt was $32,300, and for-profit average debt was $39,950. If you have advanced degrees such as law, medical, or a Ph.D., your debt can be considerably more – even in the six figure range. Please recognize that Student Loan debt is the most dangerous debt that a person can incur. It is not dismissable in bankruptcy, and your wages, pension, bank accounts, and property can be garnished for non-payment.

My advice to eliminate Student Loan debt is to not defer payment. Deferment will only increase the length of the loan, as well as increase the amount of money that you will repay due to compounding interest. Secondly, avoid Income Based Repayment plans (IBR). IBR’s are usually interest only payments, which doesn’t decrease the principle balance. Many IBR’s, depending on income, does not cover the entire interest that is accumulating on the loan. Again increasing repayment length and total amount repaid. If you have multiple Student Loans, and you are making multiple student loan payments each month, I highly recommend applying for a Direct Consolidation Loan, www.loanconsolidation.ed.gov, through the federal government. The Direct Consolidation Loan will be based upon your average interest of your current Student Loans, and more importantly, your interest rate will be fixed (does not change) for the life of the loan. Most private lending agencies Student Loans are on a variable interest rate which can change yearly. Lastly, pay more than the minimum payment. In order to eliminate your current Student Loan debt before your 90 years of age, you are going to have to make payments above the minimum. Mark any additional payments above your monthly minimum as “PRINCIPLE ONLY PAYMENT”. This will ensure that your additional payment is being applied to the principle balance and not the interest.

Future: How Do I Help My Children?
Teach your children to avoid Student Loans like a plaque! Once your own personal finances are in order, establish a college savings plan for your children such as a college 529 plan. Monthly contributions can be direct deposited from your checking account or payroll. Have your children also contribute to their college savings through summer jobs. Additionally, start searching early for scholarships that your children can apply for. Priority should be given to four year scholarships and scholarships that can be renewed annually.

Begin at a local community college. Community Colleges are considerably less than four year institutions. A Community College will enable your children to complete their liberal arts and General Education requirements. No matter your school or major, you’ll spend the first two years of college taking these basic courses. Why not do this at a highly discounted rate? I recommend your child completing their Associates Degree at the Community College before applying to a four year institution. In addition, attending a Community College enables a student to commute from home, reducing the costs of room and board. Lastly, insist that your child WORK while attending college. There is no set rule that your child has to take a full load of classes each semester, or that they have to graduate within four years. It is better to graduate without Student Loans, than it is to graduate within four years. I call this the pay-as-you-learn method. Most students receive better grades and maintain a higher grade point average when they are paying a portion of their own education. I never understood the logic of accumulating $40k – $60k in Student Loan debt, to major in a field that only pays $25k after graduation – if you can even get a job!

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.