Passed the Half Way Mark in 2009

How are you doing with your goals and plans? We are now entering the 8th month. We still have 5 months to go so it is not too late.

Think about those New Years Resolutions you made 7 months ago. Have you looked at them lately? Many people start out the year with great intentions. Some resolve to exercise more, others to lose weight, and others to earn more. Finances seem to be a major problem for the majority of folks right now. At the start of 2009, over 80% of American citizens were upside down. Our entire government is upside down. People owed more than they owned. The people who used their home as an ATM were particularly hard hit. Many of them now find that their mortgage is higher than the resale value. That is if they could sell it anyway.

How are you doing? Have you maxed out your credit cards and exhausted your savings? If so, you are not alone. There are solutions.

First, it may be tempting to get rid of all of your credit cards. You could cancel them and/or cut them into little pieces but that is not the best solution for the long term.

I do not have financial planner licenses; however, I have access to the industry leaders in evey financial specialty. I also have practical steps you can implement right now.

What I can tell you is to stop charging. The first rule of holes is "when you are in a hole, stop digging." Pick out the card with the highest interest rate. Yes, they do raise your interest rate when you exceed their magic line. Some cards start increasing rates when you are over half of your credit limit and others wait until about two-thirds. The fact is that if your credit limit is maxxed or even close to it, your rate will go up. Pick the card with the highest rate and start paying that one down first. Plan to pay as much over the minimum amount as you can scrape up. Yes, give up a Starbucks coffee or take a sack lunch. Do whatever it takes.

Frequently if you talk to the credit card company and explain your circumstances, they will work with you. What do you have to lose by asking for a reduced interest rate or reduced penalties? The worst they can say is "No." They may grant you a concession in exchange for a promise to pay a set amount each month.

Do not destroy the cards because it is very important to have credit and a high credit score is even better. Ok, so your score may not be as high as it once was but at least you still have credit. Once you cut up and cancel all of your cards, it will become extremely difficult to get another card. There are some purchases, especially online, where your only option is to pay with a credit card.

There is hope and there are also other solutions. Write to me and I will help you. There is always help and hope. Never give up. Yes, I do know what it feels like. I was at that point once in my life.