Board logo

subject: Debt Controls Your Life [print this page]


Copyright (c) 2010 Sherry TingleyManaging your debt is a critical component to attaining financial security and getting that peace of mind that you deserve. According to the National Foundation for Credit Counseling, many Americans are having trouble handling their debt.Whether your debt is caused from overuse of credit, unexpected medical expenses, a job loss or emotional credit card spending, getting your debt under control is crucial.You might think that if you are well educated your problems are minimized. That is not true. Take the latest story from Oprah's Make Me a Ten Makeover and you will see why.Tisa McGhee, 39 years old, a single mother with two small children, has two master's degrees and a PHD. With two degrees and a PHD, Tisa still had struggles managing her debt. Major life stresses brought her to seek outside advice.Although Tisa had a job making $76,000 a year, she began to have problems because of an adjustable interest rate on her mortgage that went from 7.2 percent to 10 percent, a car accident when she carried no car insurance, rising student loans that were used to cover living expenses, a divorce that resulted in overspending for emotional reasons and finally a job loss in August of 2009.To help Tisa, Oprah sought out advice from Michelle Singletary, a financial columnist for the Washington, Post. Singletary said, "It's common for smart people, just like Tisa, to make bad decisions and end up dealing with multiple problemsexcessive debt, job loss, a costly divorceall at once."There were two strategies developed as a recovery plan. Both short term and long term plans were suggested to get Tisa back on her feet. The plans really can help anyone manage their debt better, so we will discuss these strategies in hopes of helping you get closer to your financial goals.Debt Management - Short Term Plan1. Stick to a budget and find out where you can cut back expenses2. Stay on top of your mortgage payments3. Stop making extra debt payments while unemployed4. Get financial counseling from National Foundation for Credit CounselingDebt Management - Long Term Plan5. Stop using shopping as emotional therapy to make you feel better6. Save to buy a used car and pay cash for it7. Aggressively pay down debt8. Pay down student loans9. Build your businessAccording to Citigroup, "Millions of Americans face the risk of foreclosure every year. " If you are facing that problem, you can seek help through online personal financial advice about your debt management strategies.Seeking help in getting your finances under control is not something to be ashamed of. If you need help, use the resources available to you to get you back on track.Each new day that we live we have to make the same types of decisions. You decide to eat based on what you feel is best for your body. You also decide over and over again during just one day whether you can afford to spend your money on something you want or to reduce your debt.If you will use these strategies as faithfully as you regulate any other area of your life, you can enjoy long term prosperity.


Debt Controls Your Life

By: Sherry Tingley




welcome to Insurances.net (https://www.insurances.net) Powered by Discuz! 5.5.0   (php7, mysql8 recode on 2018)