Rich in Debt II

Topic: Simplification.
Sub: Reduce in Monthly Debt Expenses

If you're like millions of Americans you probably find yourself carrying a debt burden that is fairly manageable when the economy is expanding and a horrible nightmare when the the economy is stagnant. The last thing you should do is beat yourself up over your present situation, for one, it isn't productive, learn from it and move on, secondly, this economy caught the so-called experts off guard. If you're doing pretty well right now, congratulations, pat yourself on the back and send me your comments on how you do it, and if you don't mind, I'll share them with others, email me at frank@helpubuytime.com.

In times like this you must simplify your life. Beyond cutting monthly expenditures in food, entertainment, clothing, the necessities – you also need to understand your credit expenditures. How many of us have been drawn into buying a new big screen television because it was only $90 a month, or purchased a new computer for only $50 a month? Do you know people who drive a German automobile and wonder, “how can they afford that?” Did you know you could lease a top of the line German automobile for less than $400 a month? We have been taught to become comfortable making long-term financial decisions based on a short-term stability. The only thing that is for sure in even the BEST economies are the paychecks that have already cleared the bank – always remember. And if you think your employer is rock solid, remember all the LARGER corporations that have failed seemingly overnight, if you work for someone, your employment is not stable.

If you're unemployed or experiencing a significant reduction in compensation, you must take drastic measures before you expend all your cash. You control the cash in the bank, you do not control what creditors do with your account. Many people have shared stories with me on how accounts in good standing had limits reduced leaving them nearly stranded because they depended on their credit as their “emergency fund”. That's just bad planning. I had an accounting professor always say, “Cash is King.” It was a phrase that carried through my business classes, economics, and a phrase that responsible businesses adhere too – sadly, this common business adage hasn't permeated through consumers.

With unemployment comes a significant reduction in monthly compensation. It's also very finite. Very quickly you should move to preserve your cash. Explore programs like http://www.helpubuytime.com, learn about your credit rights, this information is readily available through the Federal Trade Commission, and aggressively work to lower your monthly expenses early and often. The sooner you make concessions and plan, the easier it be to weather the financial storm.

Links of Interest:
http://www.helpubuytime.com
http://www.ftc.gov/


“You cannot borrow yourself into prosperity”