Tag: Debt consolidation

Oh, I’ll find a way… Seriously??

Today I will share a dialogue and I want you to really “listen” and think:

CLIENT: Hey, I just bought a brand new car!!! Am so excited!!

ME: What? How? Can you even afford it?

CLIENT: Well, I am in debt anyway. I will find a way to make the monthly car payments. Don’t be so uptight.

ME: OK, How much credit card debt do you have?

CLIENT: Oh, not much only about $55,000. Others have hundreds of thousands

I will not share the rest of the conversation.

My thoughts on all this, which by the way made me livid: This client makes about $4,500 per month. She has a mortgage payment of $1,800, utilities of about $800, credit card payments $900, groceries, gas etc $1,100 on average. Where will the car payment come from? Where is money to put aside for an emergency fund?

I am flabbergasted. Seriously? No thought about security whatsoever? Big mistake! Everyone in debt seems to think about today and not about the future. We are human, we can get ill, have an accident, need some cash for an emergency.

What is wrong with having a car for 10 years while you are in debt? What is wrong with being more responsible?
Please people! Create a budget and if you don’t know how to do this, contact me. This is ridiculous. This client of mine is 65 years old, has nothing to fall on, no savings, no retirement plan, still works to make ends meet.

I am more upset about this than she is, and all I hear are excuses.

I insist that our education system absolutely MUST include financial 101 as a basic part of their curriculum. We are becoming a nation of people in debt. And nobody is to blame but our choices, our decisions and our aloofness.

I went into debt because I had no choice and needed my small business to stay afloat. Never again! Never! I am debt free now and intend on remaining so. Now that my debt payments are over, I put 75% of this amount that I used to pay monthly, in an emergency fund. I already have 5 thousand. This feeling of security is priceless.

I can’t stop shouting this. I will never stop writing and hoping that my advice does not fall on deaf ears.

It is totally up to YOU. Take charge of your finances! NOW

Debt Relief Services: Part 3

You just made your last payment and are finally debt free. Good for you. Pat your back, and feel proud.

Now what? Do you have a plan for your future? Have you actually learned anything from this struggle? If yes you are on the right path to financial freedom.

If not, which is what I am talking about today, you’re in the same train and will be back asking for debt relief help within 6 months.
What is it that makes people get right back in debt? I have witnessed with my own eyes and ears, people saying: Now we can finally start going shopping again.

This makes me want to scream. Shopping for what???? Do you realize what you have just been through in order to get out of debt? Have put aside an emergency fund that you DO NOT touch?

If not, you are in trouble. DO NOT I repeat DO NOT own more than one credit card. Yes just one. This way you will not get into trouble. I watch shopping channels to see what it is that makes people fly off the handles in shopping sprees.

They know exactly what they are doing. Amazing how they play with your brain, your thoughts, they have you salivating with good evening. BUT not everything they say is true. I happened to watch one episode with “exclusive” Steve Madden shoes that I happened to have in my closet and bought at Macy’s. The exclusive price they offered was 25% higher than the price I paid at Macy’s. I wrote to them, asked them, even posted on their Facebook page. NEVER received an answer.

Please start thinking for yourselves. Stop being impulsive, stop living in the I need mentality, when you actually have more than everything you NEED.

What you want is a whole other story. So, I have a test for you. When you really get the shopping itch, stop and think what it is you think you will buy, go straight to your closet, and throw out 3 items. Any 3 items. It hurts doesn’t it? Well, every time you want to splurge for now reason, throw away 3 items and bring back only 1. Teach yourself restrain, teach yourself to have fun within limits, to plan ahead, to have a cushion to fall on in case of an emergency.

Learn to create a budget, to start each month with a few dollars left from the month before. It can be done and I am here to help, to talk, to give you tips, to show you ways to work things out.

You managed to pay off your DEBT!!!!

DON’T Fall in the same trap again!

 

 

Debt Relief Services: Part 2

Today I will explain some facts.

Before you even decide to enroll in CareOneCredit’s program, you absolutely HAVE to own your problem. You need to understand what made you get into debt in the first place. Be honest with yourself.

Understand that having more than one credit card is NOT a must! Once you make peace with your situation, make the decision to truly and honestly work at this. One credit card is more than enough. Keep a card for emergency expenses and not to splurge into shopping frenzies, or go to restaurants every week.
Talk with the credit counselors and DO NOT stop making payments to your credit cards, until all the proposals that CareOneCredit will send to your creditors are accepted. There is no reason to panic, or make nasty remarks on their website. I’ve read through the years, posts by many of you that say this program is terrible, that your credit collectors keep calling you.

Credit counseling is NOT your nanny. These services exist for people who are ready to embark in a difficult task to get debt free. If you follow the rules and do what you must, have no doubt that in time you will be debt free.
I am aware that if you had the money you would pay your cards off and this is your reason to ask for help. BUT you can still make the minimum payments to your cards for another month or two. Most credit card companies are happy to accept the proposals, because they are sure that your debts will be paid off.

If a credit card company does not accept a proposal, it is NOT CareOneCredit’s fault. It is usually their policy. This is rare though. I talk from my own experience. I was ready to accept my responsibilities, did all the work and am now debt free.

If you have money to make the monthly payment to CareOneCredit, then you sure have some money to make the minimum payments to your cards. This is no game and you must face the fact that you made some mistakes. We all make mistakes, but we can correct them.

So be a grown up, take the first step and get out of debt as fast as possible.
Another issue I keep hearing that makes me mad, is that a lot of people complain about their credit score taking a dive. Well, when you are up your ears in debt, your credit score is shot anyway. Why do you even care about your credit score when you are in debt? What can you possibly buy when you can barely pay off your debts?

Rest assured that your credit score will be going up in points as you pay your debt off. The credit score is important for loans, car purchases, and home loans. If you tell me that while in debt you want to make any of the above mentioned moves, then I have to say to you that you will NEVER get yourself out of debt. Do not be impulsive. Be honest, be ready to do the work and get rid of this burden once and for all.

My third part will be about people getting right back into debt after paying off their first debt.

 

 

 

4 Ways to Conquer the Debt Beast!

Debt, debt, debt! It seems like this word has become our nemesis and we are all looking the other way to make it disappear. I was right there, until I got really mad at myself for feeling defeated.

Debt can feel so big and overwhelming that it almost feels like it is a living breathing creature, a beast. I decided to use the idea of debt as a beast as a tool to help me fight.

“Hey Debt! Can you hear me?? Are you playing David and Goliath with me? Do you know who won in the end? I will beat you!”

You may be laughing at my childish outburst, but this really gave me the power to start my war to conquer this beast. Here are the four keys to my success in fighting the debt beast, maybe they will work for you….

1. The first thing I did, was sit and write down what I spend and why. Then, I started deleting all the “extra stuff” like new shoes, clothes, music, restaurants and did not stop until I was satisfied from the outcome of the first battle. NOTHING is more important in life than ourselves. No clothes, no jewelry, no restaurant. NOTHING.

2. The next step was to ask for help. Me, ask for help? Well, yes I did and it feels wonderful, because the feeling of receiving actual help is lifting a ton of weight from our shoulders. You have to look at this in a very cool fashion. It isn’t personal; it’s just part of life. Be honest with yourself, and you’ll see that nothing can hold you back once you get in the mindset to live a debt free life.

3. Be happy and live within your means. It feels so good to look the debt beast in the eye every month and say: “Ah I just cut another limb from your ugly body!” This mental game made me feel so empowered, so happy every month that I could sleep at night knowing that I was doing the right thing.

4. Another tip is that you can pay a little extra when you have it, and you will be out of debt in no time. But be careful. Do not pay more when you don’t have enough money left to pay for food, rent/mortgage, or utilities. Paying off debt and being responsible for your day-to-day bills is the key to final and absolute success. I usually pay a little more here and there during the Holidays. I see this as a small gift of freedom to myself, instead of hitting the Malls and buying gifts. A little radical some may say, but it works for me.

So, let’s go and face the battle together! We can slay the debt beast, and live FREE at last!