In our world of dizzying change, nothing is more true than the time honored statement that circumstances always change.
No where is this more true than with financial issues.
Have you ever borrowed money, or charged up the VISA card at Christmas, all the while telling yourself that you would pay everything off with a coming tax refund or bonus?
Sound familiar. And then what happens when the bonus money arrives?
Let me guess?.circumstances changed, the car needed brakes (or the kids needed braces, etc), and the VISA debt and interest charges keeps piling up.
Unless you have a plan, you will always be caught in the unpredictable grip of "changing circumstances."
This is a slippery slope that can very quickly become serious financial stress. Consider the fact that Americans are declaring bankruptcy at record rates. One in every 100 families is affected by a bankruptcy.
I was on this slope 10 years ago. Declaring personal bankruptcy and filing for divorce went hand in hand.
One of the most insightful moments of the process was preparing a written log for the trustee of all of our spending for the 5 years leading up to bankruptcy.
While all of the individual decisions made sense in the moments that they were made, they looked totally foolish in the context of the "bigger picture"
In other words, constantly changing circumstances drove us off our financial roadmap.
Consider this five step plan for getting on, and staying with, your financial roadmap.
Step No. 1: Make a list of what you owe & prioritize: Put all your bills in a pile. Then list your debts in order, starting with the largest balance first. Then prioritize your repayments (ie paying down the highest interest rate first).
Step No. 2: Eliminate credit cards and don't roll over balances. Once paid off, notify the company that you want to close the account.
Step No. 3: Make a spending plan. Change your free-spending ways. Track the money that's coming in and going out. Use a debit card instead of your credit card. Download your bank transactions into a computer program for easy categorizing.
Step No. 4: Be careful about the equity in your home. Billions of dollars worth of equity has been withdrawn from millions of homes in the last few years. But many people pay down credit cards only to charge them up again ? and then you don't have the safety net of the equity in your home.
Step No. 5: Get help. For some people, the problem of overspending is a psychological one. Spending can become a habit that's as difficult to kick as alcohol, drugs or gambling. Sometimes, it's due to circumstances they truly could not avoid: medical bills or divorce or loss of a job.
You can talk with a credit counselor on a private basis. It only appears on your credit report if you enter their debt repayment program.
During this holiday season, as you consider your finances, remember that Americans are now carrying $683 billion in revolving credit card debt. 47% of the people who paid less than the full amount on their credit card bills in a recent month, made only the minimum payment due.
The good news is that planning and professional help will definitely help you turn things around.
Case in point: I went from bankrupt with zero assets living in a boarding house, to gainfully employed, running my own home based business, with 2 houses and excellent re-established credit.
In other words, it can be done.
=========================================================
Pay-off-debt-now.com is run by Drew Harris and is a one-stop-shop web portal for those facing crushing debt issues. Multiple pages of resources, referrals and tools. Expert advice on credit cards, loans and avoiding bankruptcy. http://tinyurl.com/4bbum
================================= ===============
With the popularity of plastic money in the present age,... Read More
There was a time when incurring debts was looked down... Read More
Overcoming the stigma of being in dept, grow in self-confidence... Read More
If your debt is becoming difficult to get on top... Read More
Debt consolidation is a popular topic these days. The average... Read More
As long as consumerism flourishes most of us will be... Read More
If you are looking for a company that will help... Read More
As any report on the subject will reveal, million of... Read More
Are you looking to consolidate credit card or other debt?... Read More
In the modern world of expensive living and high interest... Read More
For many people the lure of easy credit has taken... Read More
Problem debt is rampant throughout America. In addition to mortgages... Read More
The recently passed Bankruptcy Abuse and Consumer Protection Act was... Read More
Are you wondering why choose a debt consolidation loan? If... Read More
You're not alone. Many people face a financial crisis some... Read More
A Debt consolidation program starts with evaluating your financial situation.... Read More
Deciding to file for bankruptcy is a decision that should... Read More
Nowadays, many people can get into a bad credit situation... Read More
Will you agree with me if I tell you that,... Read More
In our world of dizzying change, nothing is more true... Read More
Student loan consolidation is one of the most used methods... Read More
To the person drowning in debt, a debt-consolidation loan looks... Read More
Has anyone noticed how many loan companies now fill up... Read More
Debt consolidation has become big business in this country over... Read More
When you are living paycheck to paycheck and it seems... Read More
Are you having a problem paying your bills? Are you... Read More
It happens to the majority of us, credit card debt... Read More
Debt consolidation may be the answer for anyone drowning in... Read More
Millions of Americans are finding it hard to pay their... Read More
Credit counseling organizations do not lower your credit score when... Read More
Here is a useful guide to what is Debt consolidation.... Read More
Have you ever seen a commercial or an ad promising... Read More
Debt consolidation loan services act as a third party intermediary... Read More
Jane was a fun loving girl from Birmingham, you could... Read More
Here is a useful guide to Debt Consolidation Loans. A... Read More
Stafford Loan ConsolidationA Stafford Loan, which can help to finance... Read More
Student loan consolidation is one of the most used methods... Read More
Debt Consolidation of Different LoansDebt consolidation refers to the restructuring... Read More
Whether you're wanting to consolidate your debt to avoid bankruptcy,... Read More
Is there something out there called a bad credit credit... Read More
Will you agree with me if I tell you that,... Read More
You are swimming in debt. You have 4 credit cards... Read More
Learning about debt consolidation can be quite a confusing venture... Read More
A Debt consolidation loan: Is a personal loan you use... Read More
Consolidating credit card debt is never easy. Too often people... Read More
Credit card debts, auto loans debts, secured loans debts, unsecured... Read More
It is quiet easy to get into financial difficulty having... Read More
With the popularity of plastic money in the present age,... Read More
Debt consolidation has become big business in this country over... Read More
If you are in the market for a low interest... Read More
Debt consolidation is a popular topic these days. The average... Read More
Bankruptcy - Having been legally declared financially insolvent. There are... Read More
You're not alone. Many people face a financial crisis some... Read More
Should you find yourself over your head in debt, you... Read More
Your credit card bills are stacking up and for whatever... Read More
However far you are along the road of financial/debt problems,... Read More
Private Student Loans ? dispelling the mythsIf savings, grants, scholarships,... Read More
To the person drowning in debt, a debt-consolidation loan looks... Read More
If you are in debt, you have several options available... Read More
In a world where people use credit as much as... Read More
Too many debts? Having trouble paying your bills? Are you... Read More
Debt Consolidation is a solution that solves your debts. Debt... Read More
First, make a list of your creditors (NOTE: you should... Read More
Have you ever seen a commercial or an ad promising... Read More
Are you the victim of a high interest rate auto... Read More
Overcoming the stigma of being in dept, grow in self-confidence... Read More
Debt Consolidation |