Financial Health

Currently, the ‘financial health’ of the average American is less than wonderful. Layoffs, cutbacks, downsizing — call it what you want, but many of us are in financial trouble. We want to pay our bills on time and stay out of foreclosure, but at times it is a struggle. At these times, many people turn to credit cards to get them through. Now there’s a potential nightmare of a problem.

Credit card use is totally out of control and creating problems for thousands and thousands of people — actually, it is credit card misuse that is the problem. Credit card companies have made it far too easy for us to have credit limits beyond what we should ever need and the other thing is, we sometimes forget that using our cards is actually making a loan. We tend to think in terms of a temporary advance until we can pay the bill next month. But then, we don’t pay that charge off when the bill arrives and the interest charges begin to mount and so on and so on.

If you are in a position that you are using your credit card for some of your daily living expenses out of what seems to you like a necessity, then you are either already in trouble or you are headed for it shortly. If you are already there or if you can see it looming in the very near future, now is the time to head it off and get yourself some help.

The media is flooded with advertisements for companies that can help you eliminate your debt. They claim that they can lower your interest rates, get rid of late fees and consolidate your debts. Well, they can. You will wind up paying them a fee to help you with it, but if you find a reputable company, it may be the single best thing you ever did for yourself.

This is a brief summary of what happened to a friend of mine. She was in her forties, went through a bitter divorce, found herself in financial trouble when she wound up with one income and continued to try to live as if she still had two. Raising children is expensive and not all dads are forthcoming with child support. She began to use her credit cards for everything from cash advances to cover daily living expenses (food, lunch money, clothes, gas) to mini-vacations for herself and the children because she felt so guilty that they didn‘t have as much as they did before. Before she knew it… WHAM! She was borrowing from one card to keep the other one at bay. When there were no other answers, she sought out the help of a debt consolidation firm and put her problems into their hands. They reminded her that she was only one of thousands in that position and with all of her information, they set up way for her to pay them one lump sum, they took their portion out of that and then they dealt with her creditors. Meanwhile, she had to tighten her belt quite a bit, as well as take on any odd jobs she could to make a little extra money and then she and the children began finding amazing things to do right there in their community that were free and fun. Most likely within about three more years, she will be debt free. And as important as that, she can hold her head up and she’ll never be afraid to answer that telephone again for fear it‘s another bill collector. She used what she had available to her to turn her bad situation into a good one. If a single mother of two can find a way to make herself whole again, I think anyone can.

If this is in any way a familiar situation for you, do not hesitate. There is no harm in admitting you have a financial problem. The harm comes in thinking if you ignore it, it will just go away. It won’t, it will just continue to grow until you will have the Godzilla of all problems. Next time you see one of those advertisements, whether on television or magazines or newspapers, take down that number and give them a call. A consult is usually free and then you can determine whether or not you want to go forward with their program. Let me know how it works for you.