Okay, let's recap the horrible position many of us find our selves in right now. We may be depressed and feel we have no control over our finances.Well, you weren't feeling that way last winter when you and your girls were on the beach in Jamaica wearing $200 bikinis, de' rum punch was flowing mon', and your middle name was "all inclusive." Realizing you will never be a size 4 again, you also decided to give away that $300 dollar 'cat suit' that put half the fellas in Louisville in a neck brace. Afterwards, you "caught a sale" to redo your wardrobe and charged up $4,000.00 for "new you" clothes.
And fellas, don't think you're exempt. You got a bonus at your job, considered it "found money"and bought the 46" flat screen tv. By the time that bad boy was mounted, complete with surround sound and "proper" viewing chairs, you spent $3,000.00 over your bonus money.
Now I shouldn't have to remind you, but I will. Here are your WARNING SIGNS OF DEBT OVERLOAD:
If even one of these sounds like you, here are three things you can do:
1) STOP SPENDING - You know those people who bring their own lunch to work, think twice about making that extra car trip, or stop going to the local bar after work -- that needs to be you. Moms, time to start making a grocery list and stop impulse and mid-week buying. Guys, now is the time to start taking your woman to the park or the kids to the local beach. As for clipping coupons, you are now one of those people!!!
Until further notice you are on 'lock-down'.
2) JEOPARDY IS A GAME SHOW, NOT YOUR LIFE. Pay the rent and keep the water and lights on!!! This class is called "Basic Preservation 101", so don't flunk out. Mortgage lates and foreclosures are the #1 worse thing on your credit report. But #2 are car repos. If you are leasing that 'Beemer', renegotiate with the company before they take it. Or maybe you should just give it back. In both cases tell them you have lost your job, working temporary and don't want to fall behind. Everything is negotiable, communication is key.
3) LOOK AT THE BIG PICTURE & MAKE A BUDGET PLAN. Oooo did that hurt. It was meant too. Pull out all those credit card bills and other bills. Make stacks, "must pay", "should pay", "want to pay." Make a list of all the out going money and all the in coming money. Then next to it put a list of things you are determined to do to make that list go away. Visualization does work. If you can conceive it you can achieve it.
Start with debt shrinkage not complete elimination. You did not create this debt over night, so it won't disappear over night. But if you create a plan, you will start sleeping better at night.