Thoughts on Debt

Everyone is talking about the prices of everything going up and up.  Most people blame it on Bush, blame it on the war, Sadaam Husien, all the arab nations, etc.  Well, a recent report says that while we are all struggling trying to be able to afford to put gas in our tank and food in our stomaches, Exxon is making a whopping $1500.00 per second.  Why is this? The problem is that everyone is using the war as an excuse to get more money out of us and put it in their pockets.  The part that I really find perplexing is where is our government in all this? Why are they not stepping forward and putting a reasonable cap on the amounts that companies especially food and oil companies can make off of us during this period of time.  Why aren’t they standing up for us in our time of need? The answer in my opinion can only be one of conspiracy.  They must be getting something from the companies either monetarily or otherwise which is worth more to them then the American public.  This whole situation is a travesty and just another way to keep the public focus away from what they are doing.  After all, if we are all so busy trying to figure out how we are going to be able to pay for things, then we can’t be looking at what they are doing, right?

I mean isn’t it lovely that during this financial crunch our government is going to start reducing their employees to a four day work week, so they don’t have to pay so much in transportation and gas.  I think that is a wonderful idea, but if this is the solution then why not reduce all companies to a four day work week.  Why not reduce school to 4 days per week? After all, not only would this save everyone money in the long run, but it would also save on the amount of gas and oil used in this country and therefore would reduce the demand, especially when you think about all the people who have really long commutes.  And wouldn’t it be helpful to have an extra day off a week? Well, I wouldn’t get your sights set on that, unless of course you are one of the elite few who get paid by the federal government.

Debt is on the minds of many with the rising cost of groceries and gasoline, where will we find the money to go on if the cost of everything continues to rise at the rate it is? How can we avoid debt in the face of this financial crisis? Well, as Suze Orman says, you may not like the answer, but I am going to give it to you straight. The only way to avoid getting yourself into a financial crunch is to CUT BACK. You must do whatever you can at this point to reduce yourself to the bare minimum of expenses. Things like bottled water and coffee from the coffee shop, I am afraid are some of the first things to go. You can brew your own coffee at home and save a bundle. You can get yourself a to-go pitcher from Brita and use that to get filtered water anytime, anywhere. If you can avoid it, don’t put anything on your credit cards, as a matter of fact, try to stop using all but one card and be sure that you are making significant payments on it each month, hopefully paying off most if not all of the balance, not just the minimum payment. Buy a used car instead of a new one, this will save you a bundle. Shop sales, use discounts, use coupons, do whatever you can to put aside some money for yourself. The more you can keep in your pocket and hang on to the better chance you have of riding out these tough financial times. Now is not the time to take elaborate vacations or buy lots of new toys, now is a time of nesting and saving. The trend shows that these tough economic times are not on their way out anytime soon. They are only just beginning and we must be prepared for what comes next. It is time to trade in your gas guzzler for a moped and to start to use a few more store brands. Shop the sales and cut coupons. These discounts if used right can provide you with significant savings. If you can get an item that is on sale with a good coupon you can save a few dollars per item, and this kind of savings especially in a big family can really add up.

It may be tough at first and a little bit shocking to the system, however, over time you will be ahead of game and will be glad that you took these steps to cut back sooner rather than later.

If you have entered this financial crunch with a bag full of debt in your hand, then you are probably starting to rip your hairs out by the roots.  It is frustrating enough to have the cost of everyday items rising daily, but in addition to that having debt that you are trying to pay down can feel like a ton of bricks on your chest.  Well, there are answers and options for you.  Of course you will want to do some tight budgeting to see what extras you can eliminate, the more money you can put towards paying off your debts right now the better.  Financial anaylists don’t think that this financial crunch is going anywhere soon, so working hard to pay off your debts now will pay off later.

If you have assets that you can borrow against, don’t.  Right now if you house is paid off, then just work to keep it that way.  Don’t over do, you don’t want to potentially lose your house to pay off your credit cards.  Better to keep the house and consolidate your credit card debt into one lower monthly payment.  Most debt consolidation companies can easily help you reduce the interest rates, and get you an affordable monthly payment.  Then you need to work hard to try and pay more than that minimum payment every month, and if that means that you need to cut back in other areas of your spending then do it, and if that means that you need to pick up a second job or sell off your old record collection, then do it.  The time to resolve your financial issues is now.  Don’t waste any more time getting yourself and your family on solid ground.  You need to do it now.

Also, if you are already in over your head, stop spending.  Not on the necessary items, but on all the unnecessary ones.  Take the time to shop more wisely.  It takes a little more time and patience to do this, but it is a definite rush when you get the item for the price you want or even less than that.  Shop online, use all available resources to save money.  Shop clearance racks, discount/wholesale outlets and big box stores.  Take that money that you save and put it back to your credit card or into a savings account.

Avoiding your debt, won’t make it go away, and spending more today will only worsen the problems later on.  Take action today, and have a clearer, easier financial future down the road.