• Encyclopedia Britannica says, "The use of credit cards originated in the United States during the 1920's." A recent MSN Money article shows 43% of American families spend more than they make. Today the average household carries an $8,000 credit card debt.
• As above, so below, or the macrocosm is but a mirror of the microcosm, and vice versa. We, as a nation, are as in debt as our own government. We spend more than we make.
• In March 2008 the New York Times said nearly 4,000 bankruptcies were filed per day, nationwide.
Bankruptcy is not the long term solution because if we don't make significant internal changes within ourselves, we will go right back to our old spending habits. Yes, your debt may be ferocious, but you can become accountable for your own actions and heal the gaping wound in your financial jugular vein.
Here's how:
• Get serious. As Dr. Phil says, "You can't fix what you won't acknowledge." Stop blaming your financial problems on your career and start acknowledging your spending habits. There are exceptions, of course, like Darrell, from Texas, who is trying to support his family on $7.25 hour working in a rest stop. His wife is ill and cannot work and they are definitely in trouble financially. But Darrell is going to have to get serious and go back to school so he can earn a living that will at least pay his bills.
• Admit that greed has been your personal value leader and recognize that more is NOT better and things will NOT fill the hole in your soul. Honestly, how many TV's do you need in one home? Is a $400 cell phone absolutely necessary for your financial survival?
• Do something! Find a way to manage your money and begin to use the resources around you to reduce your debt. Talk to a financial advisor, tax person or bank consultant. Look into the new Automatic Money Manager program online by author David Bach which helps you manage your money before it is spent.
• As financial advisor Suze Orman urges, stop using your credit cards and make it a priority to pay them off. "You must pay off the credit card with the highest interest rate first." Ask your library for her book THE 9 STEPS TO FINANCIAL FREEDOM.
• Begin attending the free 12-Step program, Debtors Anonymous.
• Know whether your salary is comparable to the salaries in your area for your position. Go to CNNMoney.com and take their free Salary Wizard report. If your salary is below the local market average, go in armed with this report and get a raise. If you are on target, you are going to have to reduce your monthly expenses.
Now is the time for a reality check on your personal finances. Your money and your career are so intertwined that both must be evaluated carefully. You now have the resources to get going and get out of debt. Here's to staying out of debt!
