Feeling a little stressed about debt? Then here's the cure - check out these incredible videos, the Top 5 Most Inspirational Videos on YouTube. If you think you've got it tough, check out the kid in video 2. Or listen to the message from the "last lecture" in video 1. Pretty amazing stories.

Sadly, the professor in the "last lecture" Randy Pausch just passed away recently. I'll bet he touched more lives and inspired more people AFTER getting cancer than most people ever do.

Makes you think, doesn't it? How many people do we touch each day, as we muddle through our daily lives? For me, I spend far too much time worrying about what I DON'T have in life - and far too little time being thankful for what I do have. And far too little time lifting the spirits of those people around me.

So I thought I'd share these videos with you. Hope you enjoy them. Let me know which one you liked the best.

Feel free to send these to someone you know who could use a little "pick me up" in the lives today!

And give a "free hug" to someone in your life!

Top 5 Most Inspirational Videos on YouTube

A few weeks ago I decided to shop around for cheaper car insurance. I told myself I wouldn't switch unless I saved myself at least $100. Otherwise it would be too much work to switch for such little savings.

I get those letters in the mail all the time advertising big savings. But I figured that when I shopped around last time, I got the lowest rate I could find, so I didn't think I'd save anything this time.

Imagine my surprise when I saved myself $516 ($43 a month). Not bad at all!

The downside is that I used an online quote service (NetQuote) so I got about 3 online quotes, about 6 different emails, and another 3 phone calls.

So the whole process took me about 3 weeks to contact the various companies (I skipped a few) and then compare.

But $400 bucks is worth a little work.

When you compare, make sure the company you choose has a good financial rating, which you can find through A.M. Best, and offers good customer service.

How much money did you save? Leave a comment below and let me know:

Is it wrong to walk away from your mortgage ... just because you can’t afford the payments?

Let’s say you have a mortgage that you can’t afford any longer. You’ve got an adjustable rate mortgage. And when the rate keeps “adjusting” up over and over again, your payments get to be too big. You contact your mortgage company and they offer no help. After all, you should have known your rate could go up, causing your payments to go up with it. Would you simply walk away, losing the house - but sparing yourself the misery every month of struggling to pay your mortgage?

Seems like some people do walk away:
Homeowners Who Just Walk Away

In an ideal world, none of this would happen. But life’s not always fair. And it’s certainly not always easy.

But is it right for these people to just walk away? And abandon their house along with their mortgage? What else are they supposed to do?

More importantly, what would YOU do if it happened to you?

Post your thoughts below:

I know, I know, when money’s tight you have to do some strange things to survive financially. But there’s a BIG difference between eating mac & cheese every night … and buying a new big screen hi-def TV to watch while you eat your mac & cheese!

So you owe it to yourself to correct as many of these mistakes as possible – as quickly as possible – in order to get yourself back on track:

1 - Playing by the creditors rules
Ever wonder why you are paying 19.99% interest on your credit cards? Because it’s a lot easier to pay than to call them up and ask for a break. And because it’s a lot easier than shopping around for a new credit card with a lower rate (if you do this, make sure to cut up the old card – you don’t need to cancel the old account, for credit score purposes, but you don’t want to add to your debt, just lower your interest).

2 - Not paying yourself first
These days setting up a savings account is very easy. Just go online, search for “online savings account”, find the highest interest rate, and set up an automatic withdrawal every month. Even if it’s just $25 or $50 a month, at least it’s a start. And before long you’ll have your own emergency fund (see below).

3 - No rainy day emergency fund
Without an emergency fund, it seems like every expense is an emergency – and then finds it way onto your credit card. You need to find a way to put aside 1-2 months worth of expenses into a bank account that you only use for emergencies (and getting that big screen hi-def TV is NOT an emergency!)

4 - Keep spending what you don’t have
Sure, when you need to spend more than you make just to buy groceries, life is tough. But then you need to look really deep (deep inside your heart AND deep inside your checkbook) for ways to cut your expenses. Do you really need cable TV more than you need food? Rather than driving to the mall, how about driving to the consignment store to shop for clothes? See, you get the idea - if you just try hard, you can find ways to save money.

     

» Click here to read more

Even though I've been using the Bank On Yourself program for over a year, it still didn't make complete sense to me.

Most articles I've read that bash BOY say things like "use insurance to insure yourself not for saving" and "use investments like mutual funds" for investing and saving.

So even though I pay my premium every month, and I know it works, it still didn't quite sink in.

Then last week I got an email from Jeffrey Reeves, the author of "Money for Life...In Good Times And Bad". He sent me a copy of his book, I read through it in a few hours - and then it all made perfect sense!

When you borrow money from a traditional bank (or finance company, credit card, auto dealer, retailer - you get the idea) you pay them the principal AND the interest. And at the end, assuming you every pay off the debt completely, you have the product ... and that's it.

But when you create your own bank, at the end you have paid yourself the purchase price - and the interest (and NOT the bank or lender) so you end up WAY ahead!

Of course, it takes a while (and the right set-up) to get your bank to the point of having enough money to make this work. So it's no "miracle cure" for all your money problems.

But each time you "bank on yourself" you're making yourself richer and NOT the banks! So you should definitely check out this book.

It costs $29.95 - but if you're thinking about banking on yourself, it's worth every penny! Jeffrey's been giving financial advice for over 30 years, and makes a great case for being your own bank - and tells you exactly why and how to do it (which was the best part for me!)

Here is the book: Money For Life...In Good Times And Bad

What do you think about this idea of "banking on yourself"?

Did you spend too much during the holidays?

If so, you certainly are not alone! January is usually the busiest month for the debt reduction industry, as people try to "dig out" after spending too much money on gifts, parties, and holiday fun!

So now it's time to get serious about your money. But it's also the time to BE CAREFUL - so you don't get ripped off! This guide will help you compare the debt reduction programs, and find the right option for your financial situation.

Free consumer guide to debt reduction programs

There are lots of choices out there for consumers. Which makes getting out of debt confusing for a lot of people.

Once you decide on the right program, then you need to research a company. And this is where it gets really hard. So make sure to do the following:

- ask lots of questions
- read the fine print
- check with the Better Business Bureau
- if it sounds too good to be true, it probably is!

Free consumer guide to debt reduction programs

Kris

With the recent mortgage crisis, Fair Isaac (who makes the popular FICO credit score used by most lenders) will be using a new system for calculating credit scores this year, called FICO 08. Here's an article from the Wall Street Journal that explains the new credit score better:

Basically, if you've only had a few "blips" on your credit report, your score might improve a little. And if you're a "repeat offender" it may go down a little.

But does your credit score really matter if you're trying to get out of debt?

I've heard this statement many times over the years from people struggling with debt: "I want to get out of debt, but I don't want to do anything to hurt my good credit rating."

That's what I used to think, too. Then when I had enough, I just said "screw this, I'll get out of debt first then fix my credit later". Guess what? It worked.

Hey, if you have a lot of debt, and have had any trouble paying your bills in the past, you've already hurt your credit - sorry to tell you. So there's no sense worrying about good credit when you've got too much debt in the first place (and isn't good credit only important when borrowing more money and getting further into debt?)

I know, it's the American way to keep borrowing, keep spending, and keep buying - even when you can't afford something.

And I realize most people have future plans, like buying a house, and don't want bad credit to get in the way.

So, you'll need to decide for yourself:

- Is it more important for you to do whatever it takes (including hurting your credit) to get out of debt?
- Or is it better for you to be safe, and protect your credit while getting out of debt?

Kris

UPDATE: I just read this article on FICO scores - it's from a marketing newsletter I read, so you may not enjoy it, but it is eye opening!

If you're losing sleep over debt, and you're having trouble making ends meet every month, then take a look at this new video created by Mark Brinker, owner of the debt settlement firm Hoffman Brinker:

Free Video: How To Decide If Debt Settlement Is Right For You

With the holidays right around the corner, now is a great time to take charge of your finances! It's easy to think "well, I'll just wait until after the New Year, and then deal with all of my credit card debt."

Sound familiar? I can understand. Been there, done that.

So unless you're expecting a big lump of cash in your stocking this year, listen to what Mark has to say. Debt settlement isn't the right answer for everyone. But Hoffman Brinker is one of only 2 companies we recommend (http://www.debt-tips.com/debt.html). So if money is tight, watch the video, then decide for yourself:

Free Video: How To Decide If Debt Settlement Is Right For You

Kris

PS: If debt settlement is not right for you ... click here

One of the most common questions I get is "how do I know a debt settlement company won't rip me off?" or "how do I find a reputable debt settlement company?"

Hiring a debt settlement company is just like hiring any professional to do work for you - you need to do your "homework".

After all, you wouldn't hire a contractor to do work on your house without getting a few quotes and checking references, right?

Sadly, you hear many horror stories about debt settlement scams. In defense of the settlement services, I think many people jump into this process without really knowing how it works. And most people who say they were "ripped off" or "scammed" just didn't know exactly what they were getting into - and expected something more like "debt miracles" than debt settlement.

» Click here to read more

The only thing worse than being in debt ... is having those annoying debt collectors calling you all the time.

Not only is it annoying, but if they call your employer, or your neighbors, it can be very embarrassing, too!

Sure, they're just doing their job. After all, you're the one who get into debt and got behind in your payments in the first place. So (unless there is a legitimate mistake) you do owe them money, and they have the right to try to get you to pay, right?

But how long can debt collectors try to get you to pay off an old debt?

» Click here to read more