Debt Free and Loving It!
Our nation’s economy has taken a serious downward turn. No doubt you have heard about the Wall Street smooth talker who swindled investors out of 50 billion dollars. Or, jobs are being snatched from under the feet of hard working Americans. Lastly, how the big three automakers received a hefty bailout while the rest of us are left to figure our way out of this financial conundrum. Our greatest fear of a recession is now officially our reality.
When Katrina hit our southern shores, it devastated the lives of millions of people. In like fashion, there is a second wave of foreclosures due to hit in 2009. Unbeknownst to main stream America, many of the sub prime loans have not matured. For this reason, I want to encourage you to act now to eliminate your consumer debt.
Debt Free
You must protect yourself and your family because foreclosures may just be a tip of the iceberg of what is to come if things do not make a turnaround. So strap in, it may be bumpy ride when this second wave of foreclosures slams the financial sector.
Job loss is at an all time high. More than 2.6 million jobs have been lost and more are expected to take the plunge. If employment continues to decline, people will not be able to pay their bills, and that is an unnerving thought.
I do not want this article to sound like a dooms day speech, but after reading an article by James J. Saccacio, the chief executive officer of RealtyTrac, it encourages me to pay more attention to what is really going on.
He said, “Foreclosure activity in the first quarter increased on a year-over-year basis in 46 out of the 50 states and in 90 of the nations 100 largest metro areas, demonstrating that most regions of the country are seeing more foreclosures.”
Who would have thought that in less than two years, 2.6 million would be jobless, millions would have lost their homes, and homeless shelters and food banks would be overflowing with the previously rich and currently poor? I didn’t think this would have happened in my lifetime. Did you?
People are going to extremes to get jobs. For instance, one gentleman with a Master’s degree walked the streets of New York with a sign on his back and chest handing out resumes. Another lady printed on her t-shirts, “Hire me I am looking for a job.” Desperate times require desperate measures.
How are people overcoming the recession? For the first time in history, we are witnessing a global recession, banking on social security for retirement is tenuous, and a weak global market coupled with consumer confidence at an all-time low only fuels peoples fears and further exacerbates the economic infrastructure. Is there any light at the end of this dark financial tunnel?
Like Noah with the ark, don’t let this recession flood overtake you…there is a happy ending to this story.
Here are seven benefits to getting out of debt before the next wave of job loss and foreclosures hit –
Benefit #1 – Reduces the impact on your health
#2 – Freedom from threats of creditors
#3 – Takes the pressure off of your family
#4 – Able to create cash reserve
#5 – Reduces emotional stress
#6 – Gives you back control
#7 – Improves credit rating
Do not wait for the economy to turn around. Help yourself.
So how can you take charge of your life?
Here are several tips and strategies to eliminate debt and start loving life again:
1. Know your mistake. It is prudent to take an internal look and understand what mistake you made to get in debt. Many times, we extend ourselves too far with such things as cars, furniture, clothes, etc., and forget that we still have to make payments on these items.
2. Read the “Fine Print”. Have you ever taken the time to read the fine print on your credit card bill? You would be angry to find what hidden fees are being charged to you…the fine print will tell the whole story.
3. One Credit Card. There are people that take pride in having multiple credit cards. If you have multiple cards, you are setting yourself up for problems. Strive to get a card under 14% interest rate and only use the card when you can make full payment within 30 days.
4. Reduce Your Liabilities. Liabilities are simply expenses that drain your income every month. Unless it is creating income for you, it is a liability. Therefore, make a list of all your liabilities and eliminate them. Do not take this point lightly. This is an area where so many people and companies are dropping the financial ball.
5. Payment Plans. If you have an outstanding bill that has a payment of .00 a month, add an extra .00 to your payment. Now your payment is .00 a month, instead of .00. I used this technique and paid off one of our bills nine months early.
6. Create A Budget. As simple as it sounds, the easiest way to save money is to know exactly how much you need to cover your living and lifestyle expenses versus how much income you can earn.
7. Use Cash. This is one of the most effective ways to reduce debt. If you do not have the money, you cannot buy what you want. Doing business with cash only is a good way to become more financially disciplined.
8. Do not shop when you are emotional. The worst time to shop is when you are emotional about your family, life, relationship or other personal issues. Sit down, take a deep breath and think before you make a mistake. My famous quote is “Every emotional decision is always a bad decision.”
In closing, you do not have to be smothered in debt for the rest of your life all you need is a plan and the passion to get out.
Have a fantastic day!
Debt Free and Loving It!
Rickey Johnson entrepreneur coach.
Rickey Johnson
Author, Speaker and Business Coach
http://www.vchase.com
