Got the Post-Christmas Financial Blues?
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Has it hit you yet? If you charged most of your Christmas purchases on your credit card, then January is usually when reality sets in and you realize that you spent too much. You know the bill is coming and you wonder how big the balance is going to be now. Credit cards are scary things and credit card companies are even scarier. As recently as December, Congress has been questioning whether the practices of companies like Bank of America and Discover are fair to consumers (see this article). These companies have been charging cardholders higher interest rates when their credit score falls for any reason. If you check your cardholder agreement, you will most likely find that your credit card issuer can raise your rate just about anytime they desire to do so. Does that scare you? It should.
If you want to get serious about improving your financial position there is no better time to start than today. You might think that you are in too deep of a hole to ever get yourself out, but you might be amazed at how quickly you can make positive traction. I am 100% convinced that debt-free is the only way to live successfully. The Bible says that the borrower is slave to the lender (Proverbs 22:7) and I believe it. When you owe someone, you work for them. Your options are limited because you have to continue to make those payments. Debt is the biggest obstacle you have to becoming truly wealthy.
So, how does one change their ways and start fresh? I recommend you start by reading Dave Ramsey’s book, “The Total Money Makeover”. It lays out a simple plan to get you from where you are today to becoming financially independent. It is a complete map of what you need to do. It is not a get-rich-quick scheme. It is real and practical. I have been following his advice for the last year and it is truly paying off. Most people are able to pay off all their debts except the house in 18 to 24 months. I didn’t see how this was possible when we started, but here we are about 18 months later and we will be debt-free next month!
You might also want to check out Dave Ramsey’s Website and Debt-Proof Living. The key is to get started. We all know that getting started is half the battle. You simply have to decide that this is what you want and then GO FOR IT!
January 7th, 2008 at 6:21 pm
OK. I’m going to try this again.
Jeff, I had the post-Christmas blues for over 15 years. I was married to a lady who constantly maxed out all my credit cards, and I must admit, I found it awfully easy to whip one out of the wallet myself. Part of our divorce agreement was she would assume our mortgage for the house on Lake Keystone and I would assume the over $50,000 (yes, that’s correct) in credit card (and other (boat, cars, etc)) debt. I never dug out of the credit card hole, and finally filed for bankruptcy in 2003. It was the lowest point in my life…without question. The good thing was, it was before these new bankruptcy laws went into effect, and it basically had no impact on me. I’ve not once had a single incident from that bankruptcy keep me from purchasing something I want…so I was VERY lucky. I rid myself of thousands and thousands of dollars of debt and now own a luxury three-story condo in the nicest park in Tulsa, a $40,000 Saab, and have no credit card debt at all. Of course, I’ve been truly blessed by my friendship with Kevin and he has played a huge role in all of this by giving me a position where I can earn as much money as I am willing to work for…but it “ain’t easy” either!!
Bob