Discover how Pigly can help with a problem most of us Guitarists face at some point: Debt.
The cost of being a guitarist
Before I reveal what Pigly is, a little background. Let’s face it. Guitars and guitar equipment are expensive. Luxury items if you will, and unfortunately I’m as guilty as the next man (or woman) in giving into not just the odd indulgence. Just looking at my extensive back-catalog of electric guitars and guitar amplifier purchases alone makes for quite frankly terrifying reading, and without toting it up, must be getting close to around the £15k mark, if not more. But do we as guitarists and musicians ever consider the impact of this sort of spending pattern?
When will we ever learn?
We all know the feeling of needing a particular guitar (or guitar-related product) to the point all logic and financial sense go out of the window. We even have a term for it: Guitar(or Gear) Acquisition Syndrome, or GAS. Guitars and music aren’t about logic, they’re about passion, creativity, and expression, and the bank balance will always play second fiddle to that.
So, we’ll never learn is the answer. I’ve been in debt for as long as I can remember, and that’s almost solely down to my love affair with guitars and producing music.
The debt-to-income ratio
And the deeper you’re in debt, the harder it is to get out of it.
The Consumer Financial Protection Bureau (CFPB) states that If your debt reaches 43% of your income or over, it becomes a bigger problem for a number of reasons, getting a loan or mortgage for example.
Not all debts are equal
…banks and other lenders charge high interest rates on credit cards because they consider this type of debt to be riskier…
https://www.forbes.com/sites/theyec/2020/08/21/good-debt-vs-bad-debt-how-to-tell-the-difference
Or in other words, let’s focus on the higher interest/credit card debts here, as most people, even the more financially secure, may still need a mortgage or a car loan, which is perfectly normal. Having lingering credit card debt that you struggle to pay off is a sign that you’re a risk to the lender, with an appropriately high-interest rate to cover them.
What is Pigly?
Pigly is an online resource for all things related to personal finance. There really is a wealth of free info, advice, and calculation tools available, but let’s focus on the area in question: Debt, and in particular two concepts that initially caught my eye: The Debt Snowball and the Debt Avalanche methods of debt repayment.
- Snowball Method – Pay off your smallest debt off first. The Quick Win method.
- Avalanche Method – Pay off your debt with the highest interest rate first. This method is the most efficient overall.
Also, I found something that surprised me. I’d always thought that if you had the surplus income to spend on paying off debt, you should focus on ALL of them, but that’s not the case…
Financial experts agree on one debt management strategy that has worked with consistency. Studies have shown that paying off debts one at a time is the easiest and fastest way to get out of excessive debt.
Pigly.com
…. very interesting indeed. This is a very helpful point that could save us all a lot of money.
The Pigly Accelerated Debt Repayment Calculator
Once you’ve decided which method is best for you (quick win or maximum savings), the idea is to record your debts in the Accelerated Debt Repayment Calculator. Next, you would record what expendable income you have available each month to allocate to your Debt Payoff plan.
Pigly then does the maths for you, so you can see, at a glance, the savings made by adding a little (or a lot) extra each month to your repayments. A comparison is also made of the time taken to pay off the debt with or without the additional repayments.
It makes for sobering reading, and this alone, for me, has opened my eyes to the benefits of paying off a little more each month.
Pigly, Debt and Mental Wellbeing
With ninety percent of marriages breaking up because of money problems, it’s no surprise that many couples are in desperate need of help tackling their financial issues
https://www.cnbc.com/til-debt-do-us-part/
Debt is a monkey on your back and a constant source of stress and worry unless you take steps to do something about it. Pigly gives you the information, the tools, and the motivation to do just that. It’s never a good idea to bury your head in the sand with any problem you may have, so the simple act of putting the figures down in front of you is, in itself, at least a start.
Pigly in Conclusion
Pigly is a free online resource that can not only help you save money but also relieve money stress and maybe ultimately save your marriage!
For me, the tools have provided an idiot-proof method of visualizing where I’m at, and more importantly where I could be at financially with even just a modest increase in monthly payments. I’ve already started putting my own plan together which will hopefully mean, well, more guitars!
Having all the info and tools in one place is really handy, and I especially love the Pigly Tips which are friendly helpers designed to navigate you through this most serious of subjects. Indeed, Pigly has struck a perfect balance of simplifying complex problems and presenting solutions to them in an easy, fun, friendly way. The branding, featuring of course, a pink pig money box, perfectly encapsulates and emphasizes what Pigly is all about.
If you have a debt problem, or you simply wondered how to better manage your debt and save money, I highly recommend you visit Pigly today. It’s free and there’s no signup or obligation whatsoever, It’s just a fun site that can help you with some serious problems.