Let me share my personal story of being in debt over $90,000 (not counting my mortgage or cars).
We are going to start from my high school days and talk about what we know about money. I knew nothing. No where in school did they teach me how to handle money a checking account or a pay check.
As the years past I learned from my mistakes about finances.
- I learned I should pay my bills first (I learned this too late).
- I learned if I got behind, it cost me more money that I did not have (late fees add up quickly).
- I learned if you got behind you were in trouble (my friends all disappeared).
- I learned if you can’t pay your bills on time you can’t borrow money.
- I learned if you can borrow money to get you out of trouble, it would cost you a lot more to pay it back.
- I learned if you have good credit, you can borrow more money.
- I learned too much credit is not a good thing.
I recall going to get a rental car at the airport in Chicago some years ago. I did not have a credit card. I went with embarrassment from rental counter to rental counter until a young lady felt bad for me and found a way to get me a rental car.
Before the next time I needed a rental I had five credit cards.
Fast forward a few years, and a few more cards later. I see a big-screen television I want to buy. They have 0% available with good credit. My credit is spotless and I get turned down because I have too much open credit. It was not bad, just too much.
I was single and had seventeen credit cards with balances two car notes and a mortgage payment, none were ever late.
I was lucky I married a woman willing to teach me how to handle money.
We made a five year plan and within a few years we paid off all the balances of all the credit cards.. There were some painful sacrifices along the way. We even sold our home and down sized for a couple of years. But we survived.
Bottom line if you can make a plan and stick with the plan you will exceed your own expectations. You will have more control of your money than ever before. It will change the way you make buying decisions.
It is a big step forward.
There are some good programs out there. Send me a note and I would be happy to share.
Thanks for spending a few minutes with me today.