Your Money Or Your Life

Have you stopped to realize that although you go to school to learn about important subjects, no one teaches you how to manage your money?

Money is an essential part of life in our pursuit of happiness, yet very rarely will a parent sit down and tech their child how to handle money.

This is true in grade school, high school and worst college. So what happens? Many of us end up in an extremely large amount of debt. We can't seem to get it together even if we make more money.

I found myself in this trap about 13 years ago. I had an "okay" job, a car, and an apartment. Nice I thought soon I would buy a house and live the "American dream". Wrong! I could never save enough to buy a house. I had plenty of credit cards, so many that I never had enough money to put aside for my dream home. This was because I was to busy making numerous monthly debt payments.

What was happening to my paychecks? Well, I was over extended in credit card debt for one. The buy now pay later syndrome was well embedded in my mindset. That mentality had to stop! Since, I wasn't terribly behind in my payments I was able to get some help from my creditors. I simply asked for a lower interest rate and/or the ability to defer a payment or two. After those much-needed calls, I had to cut up and dispose of my credit cards. No! I didn't cancel my cards but I got rid of them just the same.

Next I bought a tablet just for my budget information and bills. I also purchased a software program to keep track of all my expenses. I think it is important to keep something manual that you can carry as well as having the use of a computer software tool.

Next, as bills came in, I wrote down the name, address, phone number of the creditor, my total balance, interest rate, and minimum payment due, the due date, and if there were any annual fees acquired with the card. This helped me bring my debt picture to a reality. It also helped me figure out a strategy for repayment.

Tackle the card with the highest interest rate and pay more then the minimum due. Always ask if they can reduce your rate or seek the possibility of debt consolidation buy applying for a lower interest rate loan or credit card. If you haven't cut up your credit cards do not get a consolidation loan. Because most likely once your payments are manageable you'll start using your cards again.

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