Always Be Growing - Pain or Pleasure

What motivates you to do the things you do in your life? Most people are either seeking pleasure or seeking to avoid pain. It is generally accepted that people will do more to avoid pain than to seek pleasure.

In this current economic situation, people are experiencing home foreclosures, job losses, and sky-rocketing credit card debt. The drastic stock market decline of 2008 has had dramatic reductions in their investment accounts. Pain is an understatement. Over 80% of Americans are upside down. Don’t give up, there are financial solutions.

There is hope and there is help.

1. Do not cut up all of your credit cards and close all of your credit card accounts. Having credit is a valuable asset to be preserved.

2. Pick the card with the highest interest rate and start paying it down. The problem with most people is they keep running up the balance to the maximum and paying minimum payments until all they are paying is part of the interest, not even any of the principle balance.

3. Cal the credit card company and negotiate a lower interest rate or waive penalties. Work out a payment plan with them. They would much rather you pay it off gradually rather than file bankruptcy.

4. Even small steps will provide financial help. If it is easier for you to swallow, call it a spending plan rather than a budget. Plan out what is available and exactly where it will go. Yes, it will take discipline. How badly do you want financial solutions?

5. A friend of mine, Brian Fanale, said, “If you have to, put your couch on e-bay. Another friend sold his car. Did it take time and discipline, yes. Is it worth it to lift that thousand pound financial weight off your shoulders, yes. Think about a garage sale. There must be something you can part with to jump start your financial freedom,

6. Give up that tasty Starbucks coffee or the beverage with the boys. You can always have those later after you are financially free. Buy one less treat at the grocery store and use that money to pay even a little on the credit card debt.

7. Give up a few short term pleasures to avoid a long term pain.

8. Think of rewards for yourself which don’t cost money. Take your spouse for a moonlight walk or sit together watching a sunrise or sunset. You will be surprised how good you will both feel spending close time. Make it a project you do together for the future of your family.

What gives me the right to say this? I have been so broke in my life that I did not have enough money to feed myself and my two small sons. They ate and I pretended to be on a diet. I was so broke I had to look up to see the basement floor. I used these very measures myself. The only difference is that I took the walks with my 2 little guys while they rode in their little red wagon. We sat together at the sunrises while they sipped their morning juice.

I lived it. Now I’m fine and you will be. There are financial solutions. There is hope.

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.