Drug testing

Learn How to Get out of Debt

Debt is becoming number one problem in the United States Today. The average American family has at least $8,000 in credit card debt and most college students who just graduate from college have $3,000 to $5,000 credit card debt in their first year after college.

I love what the founder of the wisdom center Dr. Mike Murdock says about debt, he says that "Bad debt is a sign of lack of financial wisdom." If we don't know what to do with our money, we tend to spend it on something that will lose values in times. Robert Kiyosaki calls the things that will lose value "Doo Dads" Doo Dads can be a luxury car, a boat, jewelry, expensive clothes and so on.

Most people are never taught financial knowledge by their family or when they are in school. So as soon as they get out of school, they go crazy, because a lot of banks are offering them credit cards as soon as they finish their college education. They start buying things now and pay later. What they don't realize is that credit cards' interest is very high! It can be 18 to 29%. If you make late payment and go off allowed limit, the penalty period interest rate is extremely high!

It will take 20 years to pay off $1000 credit card debt if you only make the minimum payment every month. So be careful and watch out before you decide to buy something. Be careful of the words "Easy low monthly payment." They are very deceiving. When you get into debt, you will have to pay the interest if you can't make the payment in full.

Why the problem is getting worse? Most people rather spend their money on watching movies, eating out and buying clothes rather than buying books, tapes and videos that will teach them financial knowledge. They are not concern about their financial well being. Remember this, "What you don't respect, it will flee away from you." If you don't respect your financial life, you will find yourself deep down in poverty. Financial blessing will flee away from you if you don't respect it.

Most people who are deeply in debt do not want anybody to know that they are in debt. They are scared when their friends tell them that they have been spending too much. They get offended when someone tells them to get help or to buy books, tapes or go to a financial seminar that can give them financial knowledge and information, so they can learn to dig themselves out of their debt. They never consult and discuss their financial problem with a qualified financial planner or mentor.

What do I do now? Well delay of gratification is one of the solutions; don't buy it if you don't have the money to buy it! Wait, wait, and wait! I know it is very hard to fight on your emotion. You want the things you want today instead of tomorrow, but discipline yourself when it comes to buying.

It doesn't make any sense to buy a coffee table that cost $200 on credit and in 1 year you have to pay the bank $800 for the coffee table because of the interest that comes from the credit card. You can't even sell the table for $200 anymore! Be smart; use your mind before you buy, not your emotion, because our emotion can deceive us. Think, think and think, before you purchase something. Pay it cash if you really want it. Don't trade your future for today's gratification.

Get financial education! Get it now and don't delay it. You can always earn your money back, but you will never be able to earn your time back. The longer you delay the process of learning, the deeper you will get into debt and financial trouble. One of best financial education tool that is available today is "Choose to Be Rich Series" by Robert Kiyosaki. There 12 tapes or CDs and one video that talk about how to become financially literate.

It cost $150 to $200, but its well worth it. If some people are willing to pay $20,000/year to go to college, why can't they spend $200 on financial knowledge that will teach them to be smart financially for life! Don't be stingy to yourself when it comes improving your knowledge and education. If your gas tank for your car is worth $60 to refill it, your brain is worth more than $60.

Run a financial statement! You must know how deeply in debt you are! I love the depth indicator in every swimming pool. It tells me how deep the pool is, so I know what to expect. If you're not a good swimmer, you'd better stay in the pool that is not too deep, but as you become a better swimmer, you will be able to move to a deeper pool level.

Many people drown because they don't pay attention on the depth indicator in a swimming pool. It can be very fatal when someone doesn't know how deep the pool is. The same thing can happen if you don't know how deeply in debt you are.

You must know how deep your debt is! I am surprised that most people I talk to never look at their bank and credit card statements and they are not sure how much money they owed to the bank! When I ask them, how much do you owe the bank, they told me that they are not sure, or they are too scared to see their financial statement, but they are making their monthly payment and they don't even know the interest rate of their credit card!

Write it on a piece of paper, get the total balance you owed, so you know how to set a goal in paying off your debt. Remember this; you can't hit a target that doesn't exist! You must write it down on a piece of paper, or even a computer software programs like Microsoft Money or Quicken that will help you to keep track all of your expenses.

One thing that I found very useful is having a PDA (personal digital assistant) or Pocket PC to keep in track your expenses. A PDA or Pocket PC can help you balance your bank accounts, credit card accounts and manage your expenses.

Look everybody makes mistakes, it's human but we can't make the same mistakes over and over again! We have to learn from our mistakes and learn from them. The difference between the have and the have not is the amount of proper applied information that they have.

? Copyright 2005 http://www.pebden.com, Author: Entjik Jeffrie, All Rights Reserved.

limousine chicago service
In The News:

The Credit Card Debt Termination Scam

"Legally terminate credit card debt! You can be debt-free in... Read More

How to Get Money When You Are Broke

(Money You Don't Have to Pay Back) 1. One way... Read More

Use A Debt Checklist To Examine Where You Are

A Debt Checklist allows you to look at items and... Read More

Reduce Your Debt

Do you want to reduce your debt? Having trouble paying... Read More

Free Quick and Easy Money Saving Tips ? Part 1

With the high cost of gasoline and the amount of... Read More

How to Choose a Debt Settlement Company

As consumer debt continues to spiral out of control, debt... Read More

Debt

We all know about debt. If you don't have too... Read More

Bankruptcy Reform

There are some new bankruptcy laws going into effect before... Read More

How to Negotiate Debt Settlement

People over extend themselves financially as a result of a... Read More

How Do You Spell Debt Relief?

Of all the problems possible in a marriage, finances cause... Read More

What is Bankruptcy?

Here is a useful guide to bankruptcy. It should be... Read More

What is Bankruptcy?

Personal bankruptcy is a legal way to give people with... Read More

Credit Card Debt Elimination

Credit card debt elimination can be done with a good... Read More

Bankruptcy: What You Need to Know

Personal bankruptcy is a legal way to give people with... Read More

Reducing Debt Before Its Too Late - How to Avoid the Pitfalls of Creeping Debt

Reducing debt usually isn't a high priority for people until... Read More

IVA Information

If you're thinking about an IVA, it is essential to... Read More

Start Small and Your Wealth Will Get Bigger

We've all heard the phrase, "You have to start somewhere."... Read More

Your Secret Weapon... A Budget

For many, the word 'budget' immediately sends shivers down the... Read More

Do It Yourself Debt Relief

With mounting bills and unforeseen hardships, you may be considering... Read More

Worried About Debts?

Having trouble paying your bills? Getting dunning notices from creditors?... Read More

Deal with All Your Debts with Care!

Lots of people take a large ammount of loans and... Read More

The First Step To Getting Out Of Debt: Make The Commitment!

These days, getting into debt is easy.Unfortunately, getting out of... Read More

Five Major Ways to Save Money

There are two main roads to improving your personal finances:... Read More

Ten Ways to Get Out of Debt

1) Use your AssetsIf you have assets with some significant... Read More

Think for a Change

I'm not sure where it originated, but I've heard it... Read More

manufacturers led flood light holiday walkway lights Pete's produce ..