Take Charge of Your Credit

Taking Control and Leaving Debt Behind

 The headlines of late have been grim.  Increased mortgage foreclosures, personal bankruptcies and credit card delinquencies are making the news o­n a daily basis.  While all of this is alarming: mortgage debt reached $6.8 trillion in 2003,  more than 8 times the rate of personal bankruptcies than during Depression were filed, and 65 billion in credit card interest debt paid in 2003.  These statistics are enough to spur most of us into saving more, spending less and reducing our debts.

 If you have encountered any of the following, it is time to take control:

 --Increased anxiety about money and financial obligations leading to sleepless nights

 --Thirty per cent or more of your salary technically belongs to your creditors

 --You continue to overextend your credit limit and pay penalties fees

 --Your savings account is close to zero or non-existent

 --You pay the minimum payment o­nly and/or late and incur a penalty

 --Your credit card balances do not decrease and if so, this is o­nly slightly noticeable

 --You use your credit card to pay for groceries, gas and other day-to-day expenses    because you lack cash

 After deciding to reduce debt, it is easy to feel overwhelmed by the amount of information available. Do not despair.  The basics are first to evaluate your necessities and see where you can cut expenses.  Necessities are defined as food and shelter.  You will have to mercifully cut out “extras” which typically includes eating out, unnecessary clothing purchases, expensive gifts and any unplanned purchases.  Typically, we will all buy more than originally planned when there is a sale or some other great offer that seems to good to be true.  Don’t worry about a fleeting opportunity. Merchants will always find a way to entice you to spend your hard-earned dollars you just have to make sure that you part with them when the timing suits you.

 By simply thinking before you spend any amount, make sure you are not jeopardizing your long-term goal of getting out of debt and planning for your future.