Monthly Archives: October 2011

After Debt – Can We Get There?

(Wimpy key chain available at The government debt ceiling crisis has been averted, for the time being.

What about our debt crisis?

“While government debt sits at 94 percent of national revenue, U.S. household debt sits at a whopping 107 percent of personal income.” writes Steve Beck at U. S. News.

The question for us is, do we follow our leaders off the cliff, or get a hold of our personal finances?

Mr. Beck recalls the glory days of spending, when even credit card interest was tax deductible.

Buy now, pay later.

In inflationary times, when the government is running the printing presses overtime, it pays to be a borrower rather than a lender.

As a general rule.

It only applies if your income increases at least as much as inflation.

That is why all those cost of living guaranteed increases in compensation came into contracts and government benefits, people realized that inflation was robbing them of the nominal value of their money, so they had to get more of them just to stay in the same place.

As the saying goes, denial is not a river in Egypt.

Before we get to retirement planning, before we get to charitable giving, and livable family budgets, we have to get out of having more than 100% of our income committed to repaying debt we already have.

I have to tell myself how horrible it is to keep paying hundreds of dollars per month in interest on old credit card debt, and how pleasurable it will be to pay it off.

I have to realize the pleasure of getting out of debt will be so much better than the pain of being there.

Now, with #2 daughter graduating from college in 3 years (God bless her!) family finances will take an upward turn.

But, with a household of two self-employed people, it is a struggle.

A struggle that must be won.

Are You Teetering On The Edge Of Bankruptcy?

teeter totter balance

Although bankruptcy filings are down, unemployment remains high and fewer people are going to credit counselors. Credit card debt went up again. Some people may just be giving up.  No job, no income, no assets, means nothing for creditors to get; no reason to file bankruptcy. But, what happens when you get that new job? Continue Reading

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Why File Bankruptcy; I Can Settle My Debts

Yes, I know, I keep showing these rats.  But they keep trying to take your money! These two are debt settlement company employees; you know, the companies you hear about on the radio all the time:  Don’t file bankruptcy!  We can settle your debt for pennies on the dollar!  The secret the credit card companiesContinue Reading

3 Responses to Credit Cards Are NOT The Problem

  1. Very true. if you use credit cards the way you should you can save money with cash back or miles. most people buy more than they can afford that is why they wind up not paying them off every month.

  2. It is easy to start with good intentions, of paying them off every month. Then something happens unexpected, you have no emergency fund, and so it begins.