Trent over at The Simple Dollar recently posted about how he uses a visual debt reminder to remind himself of his commitment to reduce his debt.

His visual debt reminder combines several elements including:

Inspiration - this could be your children, your spouse, or anything else that will inspire you to keep your commitment

Goal - this could be buying a new home, a new car, going on a fantasy vacation, etc.

Progress - to show how close you are to meeting your goal.

I was recently interviewed by Carrie Lauth of Mom’s Money about paying down debt. On this show, we talked about the two most popular debt repayment plans - paying the highest interest debts first or paying the smallest balance debts first.

To listen, go to Mom’s Money and click on show #8.

To learn more about getting out of debt, please check out my new ebook, Living Debt Free .

Getting out of debt is a goal that many Americans would like to achieve.  But, like many New Year’s resolutions, this goal is often abandoned shortly after the goal is set.  Why is that?

One reason is that getting out of debt often takes a long time, so there are no immediate rewards for paying off debt.  This leads to a lack of motivation to meet this goal.  After all, it’s hard to keep with a debt management plan when you may not see the benefits for several years.

There’s some debate among financial planners as to the best way to pay down debt. Some say paying the highest interest rate debt first is the best way; others say paying the smallest balance first is the best way.

Both methods have advantages and disadvantages, so we’ll take a look at both, and help you decide which method is best for you.

Method #1 - Highest Interest Rate

In this method, you focus on paying off your highest interest rate debts first. The basic steps in this method include:

Since purchasing my first home a couple of years ago, I’ve learned that the cost of owning a home is much more than a mortgage payment.

In addition to your new mortgage payment, you also have to pay real estate taxes and homeowners insurance - okay these two are probably part of your mortgage payment - but then you have a whole new world of expenses you’ve never encountered before.

As a homeowner, you have to pay utilities, repairs and maintenance, you may need to buy appliances and furniture, and you have to either take care of the yard or pay someone else to do it.  Not to mention the home improvements that you’re dying to make!

Bankrate.com has a new calculator that shows the true cost of paying the minimum payment on your credit cards.

Check it out here.

As a small business owner, I know how tight cash can be at times.  Many small business owners turn to credit cards and other sources for short term loans when business is slow and cash is tight. 

I’ve noticed that payday loan stores have been popping up in my area lately, so I thought I’d do some research to find out how these places work.  Here’s what I found out…

First, if you’re not familiar with payday loans, basically, they are short-term loans, usually in small amounts.  Typically, you write a check for the amount of the loan plus fees, and the lender cashes the check on a specified date, usually one to four weeks later.