Debtors Anonymous

Updated July 21, 2021 - First published on Jan. 3, 2020

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Debt impacts more than your bank account. It can also make you physically ill. Debtors Anonymous can help.

Debt is a serious problem for Americans. By the end of the first quarter of 2019, total public and private sector debt in the U.S. amounted to a whopping $70 trillion. But statistics fail to tell the stories of everyday people who are crushed by the weight of personal debt, people we know and care about.

You may realize that your debt has gotten out of hand and you need help, or you may wonder if you're quickly approaching that point. That's where Debtors Anonymous comes in.

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What is Debtors Anonymous?

Debtors Anonymous is a 12-step program that gives guidance on how to get out of debt and take control of your finances. It also provides a safe space (either physical or virtual) for talking about your debt issues with other people who are in similar situations.

Debtors Anonymous was born out of an Alcoholics Anonymous (AA) meeting in 1968. As with other 12-step programs, the first step is to admit powerlessness over debt. You are encouraged to take specific actions to decrease debt, including monitoring your finances and keeping detailed financial records. Once you have a clear picture of your spending habits, you can develop healthier habits to take their place. Debtors Anonymous can also help you discover ways to maintain your quality of life while paying off debt.

Although we don't know how many people attend Debtors Anonymous meetings, we do know that there are more than 500 registered meetings scattered throughout more than 15 countries. Meetings are held in person and online.

Debtors Anonymous meetings: What to expect and where to find one near you

Doing anything for the first time can be nerve-racking. The first thing you can expect once you commit to attending a Debtors Anonymous meeting is to feel anxious. After all, you're entering a room full of people who immediately know you have a problem. The balm here is that each person in the room has the same problem and understands what you're going through. Here's what else you can expect:

The meeting will probably be held in a public space, like a library or church.
Depending where you are, the size of the group can range from a handful to 100 people.
You will be welcomed to the meeting. You won't be asked to sign anything or promise anything. Debtors Anonymous does not even have a membership roll. They take the "anonymous" part of their name seriously.
Each meeting has a leader, normally someone who has been constructively dealing with debt for a long time. That person will make a few announcements and outline the format of the meeting. The leader may ask you to give your first name so people can welcome you.
At that point, attendees take turns talking about their money issues. They'll share the good and the bad, and you may see yourself in some of the stories they tell. The point of Debtors Anonymous is that it's a safe place where everyone in the room is there to support you. You can choose to speak, or you can simply listen. You have total control.
Debtors Anonymous is not a religious organization, but they do believe that everyone has a "higher power." For you, it may be God or something else that you perceive as being greater than yourself and a source of power.

To find a Debtors Anonymous meeting near you, visit their website. You'll be asked to type in your zip code and offered a list of meetings in your area.

Online Debtors Anonymous meetings

If you're crunched for time, unable to leave home, or not quite ready to meet other people face-to-face, Debtors Anonymous offers online meetings. Their website walks you through how to get started. Like live meetings, you will hear other people's stories and learn more about what goes into getting into debt and how to reverse the process.

The physical and emotional impact of debt

If you're in too deep, you don't need anyone telling you what you feel. Still, it's important to understand the way debt hurts more than your bank account.

A report in the January 2016 edition of Psychology Science found a correlation between unemployment and the number of over-the-counter painkillers purchased. Financial concerns not only hurt your bank account and credit report, the weight of those concerns also causes physical pain. Researchers found that simply thinking about financial insecurity is enough to increase pain. Here are some of the other unpleasant side effects of living with debt:

Debt triggers stress, leading to a lack of sleep, loss of focus, and constant worry.
Debt leads to worry about other things, like losing your job.
Debt can lead to panic attacks that include shortness of breath, dry mouth, headaches, rapid heartbeat, sense of unreality, and shaking. A panic attack can lie to your brain and tell you that you're losing your mind or even dying.
Debt can make you angry and lead to a phenomenon called Debt-Anger Syndrome.
Debt-related stress can give you migraines, lead to heart disease, and reduce your resistance to infections. In 2016, the Federal Reserve Bank of Atlanta even linked debt to higher death rates.
As if this list isn't depressing enough, debt can lead to depression, hopelessness, and low self-esteem.

Do you have a debt problem?

Debt can be a tool or a weapon. We can use it to move us forward in life (as long as we responsibly pay off personal loans and other debt), or we can use it to kneecap our financial future. These are the signs of compulsive debt accumulation, and they could be clues that you need help, according to Debt.org:

You don't have a budget that tracks your bills
You don't know how much your account balances are
You'll buy something if it's on sale, even if you don't need it
You've maxed out your credit cards
You've missed payments on unsecured loans and credit cards
Debt collectors call you
You frequently borrow from other people and fail to repay them
You've made the payment on one credit card by borrowing from another
You've taken a cash advance from a credit card to prevent your bank account from overdrafting
You never consider the interest rate when you borrow money
You've lied on a credit card application in order to get credit
You lose sleep from worrying about debt
You have taken a second job or worked extra hours, simply to keep up with your spending habits
You've begun to drink in an effort to numb your concern about mounting debt
You don't want your friends or family to know how deep in debt you are
When you do come up with a budget, you can't stick to it
You don't plan for the future by saving for retirement, education for your children, taxes, or other expected obligations because you would rather spend the money today
You secretly dream that someone will come along to take care of you financially and get you out of the financial hole you're in

Debtors Anonymous works for all levels of debt

You don't have to be drowning in debt to be welcomed at a Debtors Anonymous meeting. They are for anyone who wants to gain control over their spending and debt habits. If you're still able to pay your bills but are worried about the direction you're headed, Debtors Anonymous is a safe place to begin.

Once you have control over your debt, you'll keep working on those steps one day at a time. The goal is to achieve and maintain financial solvency in order to lead the healthiest life possible.

Our Research Expert

Dana George

Dana has been writing about personal finance for more than 20 years, specializing in loans, debt management, investments, and business.

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4 Little-Known Perks of a Costco Membership

By: Dana George | Updated July 25, 2023- First published on July 25, 2023

Costco has a faithful legion of fans -- otherwise known as members. There are 123 million of them, to be precise. Throughout the years, Costco has added new membership benefits, some less well-known than others. Here are four that members may not realize exist.1. RV parkingWhether you spend part of each year visiting the highways and byways of North America or you're hoping to rent an RV for your next vacation, it's good to know that some Costco locations allow RVs to park overnight in their lots. Free overnight parking can certainly cut down the cost of travel.Consider the convenience. You arrive near closing time, pick up all the items you've already burned through or forgotten to bring, and spend the night in a well-lit lot. Granted, pulling an RV into a (typically) packed Costco lot may not be the easiest thing you've ever done, but once the lot clears out, you may even hear the sound of crickets.Notice we said that some Costcos permit overnight parking for RVs. When a store does not, it's often because local ordinances don't allow it. However, with so many Costcos scattered across the country, you should have options.The easiest way to determine which Costcos allow overnight RV parking is to check this Costco locations finder. Once you see one near where you plan to stay, call that store and ask to speak with the manager. Once you have them on the line, ask about their overnight policy. If the store does permit overnight parking, ask for permission to stay. According to the Camper Report, Costco has rules for campers, so you may want to ask where you can get a copy of those.2. Home, auto, renters, and specialty insuranceIn the back of our minds, most of us realize that Costco offers insurance, but we're not sure of the details. Partnering with CONNECT, powered by American Family, Costco members receive discounted rates on many of their insurance needs. Beyond the initial discount, CONNECT allows you to add more. For example, you may qualify for a safe driving, multi-policy, or student discount.And if you're an Executive member, CONNECT sweetens the pot even more by providing you with benefits like roadside and lockout assistance.At a time when many people are unhappy with the insurance industry, 9 out of 10 members who sign up for CONNECT coverage go on to renew their policy with the insurer.3. Home and business suppliesWhile it may occur to you to pick up envelopes and printer paper at Costco, have you ever taken advantage of the low prices on items like checks, ink stamps, and address labels? Many of the supplies you need to take care of business -- at home or in the office -- are available for up to 50% off.Executive members enjoy an even deeper discount.4. Floral deliveryOnce you factor in delivery costs, sending a lovely bouquet of flowers to someone can cost a small fortune. That's not the case at Costco. Costco's online floral department offers everything from anniversary and graduation bouquets to bulk flowers. And here's where the real savings come in: Delivery is free. The price you see listed on the site, plus tax, is the price you pay.Few things are more frustrating than typing your credit card number into a florist's site, only to learn that delivery costs nearly doubled your purchase price.As Costco layers on new perks, keeping track of them may become even more difficult. It's a good idea to check periodically to see if there are any you're not taking full advantage of.

SNAP Benefits Will Increase in 2024. Here's How Much a Family of 4 Will Receive

By: Emma Newbery | Updated Aug. 7, 2023- First published on Aug. 7, 2023

Are SNAP benefits enough?A monthly payment of $973 for a household of four equates to around $8 per person per day. While SNAP benefits aren't designed to cover everything, it isn't easy to feed a family on around $2.66 per person per meal. Indeed, research from the Urban Institute showed that the maximum benefits often don't cover a family's food costs. "Amid inflation, SNAP benefits did not cover the cost of a meal in 99 percent of counties in 2022," said the report.The new benefit amount -- a monthly increase of $34 for a household of four -- is roughly in line with cost-of-living increases measured by the Bureau of Labor Statistics (BLS). Its latest Consumer Price Index figures show that the cost of all items in June, 2023 was up 3% over the year before. However, inflation does not impact all aspects of life equally.The BLS data also shows that food at home increased by 5.7% year over year. The new SNAP benefits do not match this. Hypothetically, a 5.7% increase in benefits for a family of four would mean a new monthly payment of $992, rather than the planned $973.In addition, this year brought the end of the pandemic-era emergency food benefits throughout the country. According to CBPP calculations, this meant the average person received about $90 a month less in SNAP benefits. Even factoring in the increased SNAP benefit amount, many households have seen a significant drop in their food benefit amount, and the revised 2024 payments will do little to close this gap.How to make your SNAP benefits go furtherIt can take time and energy to provide healthy food for your family on a strict budget. The challenge is that in a busy household, time and energy are also limited resources. Even so, if you can carve out some time to plan your grocery-shopping trip, it can make a big difference.Here are some ways you might stretch your SNAP benefits a little:Use cash back apps and coupons: Look for cash back apps that work in stores that take your EBT card. You'll usually need to download an app and then scan your receipt after you've been to the store. Pay attention to coupons, whether in store or online as these can often carry hefty discounts.Always shop with a list: Planning your food shopping is one of the best ways to reduce costs. Even more so if you use a cash back app or coupons. Check what offers are available on items you normally buy before you go shopping. Mark the items that qualify for rewards or discounts on your list, so you don't miss them when you're shopping.Look for double up programs: There are Double Up Food Bucks or other programs in various states that essentially give you two for one on all produce at participating farmers markets and stores. It's a great way to get more fruit and vegetables for your SNAP dollars.Buy in bulk and batch cook: It isn't always easy to find the extra cash for bulk buying when you're eking out every cent. However, if you can manage it, you may be able to save both money and time. You might, for example, batch cook a stew and freeze portions for future meals.Unfortunately, food insecurity still impacts many American households. If you don't have enough money to feed your family this month, look for additional help. Find out what food pantries and soup kitchens are operating in your area on which days, and whether you'll need to present any documents. Call United Way at 211 for information about assistance programs in your area.

Does Your Income Make You Upper Class, Middle Class, or Lower Class?

By: Christy Bieber | Updated Sept. 5, 2023- First published on Sept. 5, 2023

Incomes vary widely across the United States, with some people making many times the amount that others earn. If you've ever wondered how your personal finances stack up, and what "class" your income officially puts you in, here's what you need to know.What income do you need to be upper, middle, or lower class?Based on 2021 data, here's what you would need to earn in order to be in each class:Lower class: This is defined as the bottom 20% of earners. Those in the lower class have an income at or below $28,007.Lower middle class: This is defined as individuals in the 20th to 40th percentile of household income. Earnings among this group are between $28,008 and $55,000Middle class: The middle class is officially those whose earnings put them in the 40th to 60th percentile of household income. The income range is $55,001 to $89,744.Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131.Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.Take a look at these numbers and see where you fall based on your own earnings. And remember, this is a snapshot in time -- your earnings can change throughout your life, and so can your class designation.Will your success be determined by your income and class?It's probably not a surprise that those in the upper classes or in the upper middle class do have a higher net worth than those in the lower class or the lower middle class. But the disparity is greater than you might think. While the median net worth of those with incomes of $149,132 or higher is $805,400, the median net worth of those in the lower class is just $12,000.Your income impacts how easy it is for you to build wealth. If you make more money, it is easier to save it and invest it in a brokerage account where it can work for you. If you make less money, then you may struggle even to cover the necessities out of your checking account, much less to buy valuable assets that help you grow richer over time.But that doesn't mean people who don't make a lot of money can't be a financial success. A lot depends on what you do with the money you actually have, including how much you spend and how much you save.There are plenty of people who make over $100,000 a year who live paycheck to paycheck, and plenty of people with incomes that put them squarely in the lower or lower middle class who have diligently saved and grown quite wealthy over many years.Here's how you can improve your standingDon't be discouraged if you aren't in the class you hope to be. For one thing, you have opportunities to increase your income by taking the following steps:Learning new job skills: You could obtain a certification, take part in a management training program at work, or take some classes to develop skills that may help you get promoted (such as computer training courses or public speaking classes), depending on your industry.Take on a side hustle: The average side hustle brings in $483 per month, which is a good amount of extra money that could make a meaningful difference in your income.Work some extra hours: If your company allows you to work overtime, take advantage of it, as many people are paid time and a half for overtime hours.Negotiate your salary: According to Pew Research, when workers negotiated for higher pay, 28% said they received the extra money they asked for and 38% indicated they were given more than originally offered but less than their ask. Whether you are getting a new job or staying at your current job but feel you're underpaid, it doesn't hurt to make a request for more money -- especially if you can find salary data to back up the fact that others in your industry are paid more.And even if your earnings never put you in the top 20% of earners, you can still have a rich life and end up with the financial security you deserve -- especially if you prioritize saving as much as you can for as long as you can.

3 Reasons I Don't Like Aldi as Much as I Used To

By: Maurie Backman | Updated Sept. 13, 2023- First published on Sept. 13, 2023

At some point in 2022, I discovered Aldi and began shopping there weekly. I found that I was able to save money on my grocery bill by purchasing certain produce items there. And since I happen to have an Aldi adjacent to my local Costco, it wasn't particularly out of my way.But over the past few months, I've become less enamored with Aldi. Here's why.1. The selection is just too limitedAldi -- at least near me -- is a minimally stocked grocery store. The shelves aren't loaded the way they are at my nearby ShopRite and Stop & Shop.To be fair, this was the case when I first started shopping there. But because there's just not a lot of selection, I'm generally limited to only buying a few items when I pop into Aldi.Not so long ago, I was running into Aldi for some fruit, which I usually buy there, and I needed to grab shredded cheddar cheese. Normally, I get that at Costco, but I didn't want to run next door to Costco and wait in a line for cheese alone. Unfortunately, though, Aldi didn't have the cheese I needed, so I had to make an extra stop anyway.2. The inventory is too inconsistentNot only is there a limited selection of food items I can buy at Aldi, but sometimes, I can't even find the five or six things I'm looking for. Aldi was once my go-to source for avocados, since it's an expensive purchase and Aldi tends to sell them for less than Costco (at least in my area). But the last few times I stopped at Aldi, avocados weren't in stock.And that's happened to me with other things, too. Over the past several months, I've struggled to find everything from cucumbers to strawberries at Aldi as well.3. What the store saves me on groceries, I lose via lost working hoursShopping at Aldi still has the potential to save me a little money on groceries. At a time when supermarket prices are up 3.6% on an annual basis, that helps.The problem, however, is that even though Aldi is right near Costco in my neighborhood, thereby allowing me to combine those trips, it still takes time to visit an extra supermarket. I have to find parking, wait in a checkout line, and spend time searching the shelves.While it's nice to save $2 here and $3 there, the reality is that a stop at Aldi might cost me 20 or more minutes of work -- especially when I don't manage to find the things I need. And losing out on that work time often means forgoing more than $2 or $3 of income. So from a time perspective, it's just not worth it.Shopping at Aldi could make sense for a lot of people. If you're someone with flexibility in your schedule and grocery list, and you're not so picky about the brands you bring home, then it could pay to spend the time visiting Aldi, even if you don't always manage to find all the things you need. But I've reached the point where shopping at Aldi makes less and less sense for me, so I'll most likely stop going there unless it's a one-off basis.

Why I'm Buying My Next Laptop at Costco

By: Steven Porrello | Updated Sept. 20, 2023- First published on Sept. 20, 2023

Again, if you buy the laptop in-store at a Costco warehouse, you might get a lower price than from its online store. This is especially true as holiday sales approach, like Black Friday, which might see electronics and laptops discounted.2. Generous return policy and two-year warrantyCostco will let me return a new Macbook Pro for a full refund within 90 days after I purchase it. Even better, Costco will accept my return even if I don't have the original box. For comparison, Best Buy will give you 15 days to return a MacBook (60 days if you're a My Best Buy Plus member), while Amazon will also give you 15 days.Not only that but Costco will extend the manufacturer's warranty to two years, giving me two years of coverage for mechanical or electrical failures. And if that wasn't enough, it also sells AppleCare+ at a slightly cheaper price than other retailers: $319 for a three-year insurance policy. In contrast, Apple, Amazon, and Best Buy all sell the same policy for $399.3. Free technical and troubleshooting supportLastly, buying a MacBook through Costco means getting free technical support through its Concierge Service. This could really come in handy if you're working on a deadline, your Macbook suddenly stops working properly, and you don't have time or energy to figure out a solution on your own.Even better is that you get technical support indefinitely, whereas other retailers, like Apple, will give you support for a set amount of time, like 90 days.Low prices + support + 2% back = why I'm buying my Mac at CostcoAll in all, I'll buy my 16-inch Macbook Pro from a Costco warehouse when I can get it for a discounted price. Cost is a major factor in my decision (I can't blow my personal finance goals for a new laptop). But so is the return policy, technical support, and one-year extension on the manufacturer's one-year warranty. Plus, I get 2% back with my Costco Executive membership, which is about $50 back on a $2,249 Macbook Pro.True, it's important to compare that with other retailers to see who has the best deal, but if you're a Costco member, you might not find a better value when in-store laptops are discounted.