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Debt Consolidation Loans and Debt Management American Version of Debt Management
The American version of debt management seems to be; buy now, pay later, or worry about it later. “Instant gratification” has replaced “save for a rainy day” as the watch-word for Americans regarding their money.
Most American households do not have savings. They simply live paycheck to paycheck. They pay what has to be paid THIS WEEK, balance the checkbook, and decide how to blow what's left....and those ARE the responsible ones.
The irresponsible ones get a paycheck, do what they want to do, buy what they want to buy, and if there's anything left, they use it to pay the bill that is most pressing at the moment. Neither method could be called responsible debt management or sound financial planning by any stretch of the imagination.
Saving money is rapidly becoming a lost art form in America. In a recent study, only 41% of all American households actually had savings accounts, but 75% of all American households are carrying substantial debt.
This is certainly not the kind of money management that our grandparents would have approved of. There was a time when being in debt was a shameful thing but that idea went the way of the Model A, apparently.
Declaring bankruptcy became so easy, and so many people were taking advantage of it, that Congress finally had to make it more difficult. Debt management businesses are thriving, and you can't turn on the TV without seeing an advertisement for debt consolidation loans.
Americans need to return to the sound financial practices of the past, like save first. American mothers and fathers need to instill the basics of debt management into their young ones. American high schools need to require that a course in financial planning and debt management be successfully completed before a diploma is awarded.
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| The Traps of Debt Consolidation for Debt Management Debt Management and Health
There aren't many things in life more stressful than having bills due that you cannot pay, a mail box full of second, third, and final notices, and bill collectors calling day and night.
Stress itself is a health issue and can also cause many other health issues. Financial health has a direct connection to physical and emotional health. Financial problems lead to relationship problems which lead to emotional, mental, and physical health problems. Controlling your financial life is important not just from a financial standpoint, but from the relationship and health standpoints, as well.
Of course, I am not suggesting that you can avoid every health problem, all stress, or that your relationships will flourish if you just stay in control and manage your debt well. I am saying that you can avoid a lot of unnecessary grief by making a plan and managing your debt in order to prevent stress and all of the problems that stress can and does cause.
Make a plan -- think budget. Take control of your financial situation. A written plan takes the pressure off. You don't have to remember things. You simply use your budget and your financial plan.
Pay your bills on time and in full each and every month. When you conduct your financial life in a well-planned and responsible manner, you will find that other areas of your life become better organized and better functioning as well.
It isn't easy to take control in midstream, so to speak, but it can be done. The first step to relieving some stress in your life is to find a budget form on the Internet or in a brick-and-mortar store. Follow the directions that will be provided.
As you take control, you will relieve your stress and improve your physical, mental, and emotional health as well as your financial health. |
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| Debt Management Experts Debt Management: The Controls
Managing debt is very much like driving a car. When you drive a car, you must know where you are going, keep your hands on the steering wheel, your eyes on the road ahead, look behind you, and watch your speed. That is the way that you control a car, and controlling debt is done in the very same way.
Know where you are going: You and your spouse or significant other need to sit down and define your financial goals so that everybody knows what the destination is. With specific goals in mind, the route to achieving them will be easier to define.
Keep your hands on the steering wheel: The steering wheel of debt management is the family budget. A clear allotment of funds will keep your financial life on the road and going in the right direction.
Keep your eyes on the road ahead: To avoid accidents, you need to be prepared to stop or take evasive action when driving a car. The same is true of debt management. You need to save first and spend second.
Look behind you: We always learn more from the mistakes we have made in the past, and we can learn from the things that we did right as well. Remember where you have been so that you can better see where you are going. Gauging progress inspires us all to do better.
Watch your speed: You don't want to try to go too fast when achieving your financial goals. You need to live well today, as well. But you don't want to poke along in the slow lane, either. Set a speed and stay in control of that speed. Save on a regular basis so that your goals may be achieved...but enjoy the trip, too. |
Related Topics: Debt Management and Health,
Debt Management and Collecting Your Debts, Free vs Paid Debt Management Services
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