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Getting Out of Debt: What's the Factor That Determines Success or Failure?
As an editor for the Money & Finance channel, I troll the web for information on debt management, looking for the best advice, motivating statistics, reputable programs and the like. It seems that no matter where I look, the basic steps to get out of debt are the same: Stop using cards immediately, log all that "bad" debt with interest rates and mininum payments into a spreadsheet, call creditors to negotiate lower interest rates, pay off cards with the highest interest rates first (making minum payments on the others if that's all you can swing). And if those payments can't be managed, then these general advice articles typically point consumers to credit counseling services or debt management counselors who can help determine if bankruptcy is the best option.
Don't you wonder? If there's no secret knowledge or special trick to getting out of debt, why is it so hard for people to do?
I have a few theories to share. One could start with looking at the options and proactive steps not included in the general advice above.
Why do you believe it's so hard for people to get out of debt? What options and positive steps can consumers take that aren't often discussed? Has anyone tackled debt by using just the basic steps outlined above?
editoronmoney at 10:33:00 AM EDT Blog about this entry |
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I believe that a lot of the reason people have a hard time getting out of debt has to do with Murphy's law. We start off strong, but then the car breaks down, or we have unexpected medical expenses, and because most people don't plan for emergencies, they are once again using their credit cards to cover the expenses. When there is no emergency savings fund, all of their hard work is blown, and it is hard to pull yourself up and push forward when you are back at the starting line.
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Editor:
You said you had a few theories that don't appear on other sites. Where are your theories? I've looked to no avail.
Christi Griffin
CEO /General Counsel
wwwMoneyExposed.com -
Over the last 22 years I've counseled more than 10,000 individuals and business owners regarding their finances. Most of them I represented in bankruptcy. A large percentage of people who file bankruptcy, regardless if the underlying reason is divorce, medical bills or over spending, end up filing a second or third bankruptcy some time in the future.
Although I've provided written advice for clients to follow, it's only through personal one-on-one consultations that we've seen the results that create the necessary change to reduce debt. We have control over our health, spending and relationships and we choose to engage in unhealthy behavior physically, mentally and financially.
You can spends thousands of dollars for consolidation services but until an individual acknowledges the problem, decides to engage in new behaviors and embraces the need to change, they are destined to repeat the same mistakes - with money, with their health, and in relationships. There is an old addage that will always hold true. "Everywhere I go, there I am." Change is inevitable. It might as well be for the better.
Christi Griffin
CEO/General Counsel
www.MoneyExposed.com -
we want to keep up with Jonses or maybe we are doing so good that a small reward turns into a shopping spree
6/2/08 8:18 AM
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Rey
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