Will you be in debt forever?
August 27, 2008
“Why you may be stuck in debt forever.”
This was a link that greeted me this morning on MSN.com. What a depressing thought. Could it really be true? Of course, I had to click on the link and see what this was all about.
The actual headline of a column written by M.P. Dunleavy was, “Is debt your destiny?”
Okay, that didn’t make me feel too much better. I started reading. I would recommend that you give the article a read, too.
Basically the gist of it is that it is too easy to get credit, and all of the easy access to credit has changed the way we think of money and spending.
I think most people would agree with that.
Then, M.P. goes on to cite a study that shows that many people who are in poor financial shape and carrying debt continue to stay that way for many years to come.
I’m not doubting or disagreeing with the outcome of the study. However, I am saying that we are not “destined” to be in debt.
It’s not easy to get out of debt. It takes dedication and determination to change your spending and saving habits. It takes mental fortitude to learn to live a different lifestyle. But, it can be done. You don’t have to give in to the idea that if you’re in debt today, you’ll still be in debt 10 years from now.
Of course, many of us have car loans or mortgages that leave us with some sort of debt through a big portion of our lives. As long as your car and mortgage payments are manageable and within your budget, that’s not really the debt I’m talking about.
I’m talking about getting yourself out of unsecured debt from credit cards, personal loans, school loans and things that are more short-term if handled properly.
I think the first step is to decide that you really want to pay off your debt. Set a goal and make up your mind that you will reach that goal. Make a promise to yourself that you won’t be another statistic, that you won’t be a slave to debt forever.
Check back Friday for more tips about how to get yourself out of the debt cycle.
Also, take a moment to share your thoughts on debt being a person’s destiny. Do you think it’s true? Do you feel like you’re destined to be debt ridden? Why or why not?
Beware of scammers offering loans
August 25, 2008
Whenever there are vulnerable people, it seem like there are dishonest people ready to make a quick buck.
In a time when so many people are struggling to pay their bills and keep food on the table, there have, unfortunately, been scammers preying upon people to take their money and offer nothing in return.
On Friday the St. Louis Business Journal ran a story about a company that is promising personal loans to individuals, taking their money and ultimately walking away with it. No loan is ever given, and the person who made the “deposit” on the loan is left in worse financial shape than before.
You can read the entire story here. The company is reportedly using a
I really cannot stress how important it is for individuals to do their homework before agreeing to do business with a company, especially before you hand any money over.
This advice goes for any type of credit counseling, debt consolidation, personal loans or anything else that has to do with your finances.
Research the company. Check with the Better Business Bureau, your state attorney general’s office and the Federal Trade Commission.
And keep in mind the old adage, “If something seems too good to be true it probably is.” Go with your gut. If something doesn’t sit right with you, do some more checking.
There are many reputable companies who help people with their debt. Even though you could be in a financial situation where you feel panicked, it’s important to take enough time to make sure you are truly going to get help from a company.
Also, if you have fallen victim to a scam, please report it to the BBB, the FTC and your state attorney general. The only way to stop these companies from taking advantage of more people is to report them.
When adult children need financial help …
August 22, 2008
Should parents bail out their adult children?
I don’t mean bail out in jail terms, but in terms of providing monetary help.
It’s an interesting question and one that comes along with implications, especially for older parents who may be on a slippery financial slope.
More and more senior citizens are struggling financially these days. That means that parents may not have the money to help their grown children.
Of course this doesn’t mean these parents won’t help their children anyway. Unfortunately many older folks will help even if it is detrimental to their own situation.
There are some things adult parents should consider before they help their grown children.
Can you afford it? If you give your child the money, is it going to have negative consequences for you? Don’t just think in the short-term, look to the future as well. You should not jeopardize your well being.
What are the circumstances surrounding the adult child’s situation? Did something happen that was beyond his or her control, or did carelessness or blatant disregard lead to the financial setback?
Is this a one-time situation or a pattern? There is a line between helping your adult child out of an unexpected jam rather than enabling them to continue down a path of reckless spending.
It is understandable that parents would help their adult children in certain circumstances, especially if grandchildren could be affected by their parents’ actions. However, if irresponsibility or a pattern of bad behavior has led to financial problems, the parents should recommend their child seek help outside of the family such as with a credit counseling service or mental health services, if necessary. It is important for adults to take responsibility for themselves and work to get into a position where they are financially stable and self-sufficient.
The good old days when a purchase meant service, too
August 20, 2008
On Monday I wrote about the high cost of flying. The New York Times story I referenced mentioned that consumers aren’t really complaining about all of the additional fees.
Of course, one NYT source did note that if you complain in Starbucks you get a free drink, and if you complain too much in the airport you run the risk of being escorted out by the TSA. Let’s face it, airport security is no joke these days.
The whole thing got me thinking about all of the other “extras” we pay for or types of service that we have lost. Are we really complaining about anything?
The first thing that came to mind was the grocery store. I can remember a time, not too long ago, where not only did they bag your groceries, but a bag boy (sorry if that’s now politically incorrect) would actually help you to your car and unload your groceries.
Now you’re lucky if you don’t have to scan and bag your groceries yourself. Forget about help to the car. The price of groceries hasn’t gone down, or even remained stable, but the level of service that goes along with shopping has seriously declined.
In general it seems like there is less help in a lot of stores.
Does anybody remember the days when you stopped for gas and an attendant actually filled your car? Now I can only name one gas station, that I’m aware of, where they actually fill your car for you.
I’ve written a previous post about all of the delivery charges being tacked on to things.
I’ve heard rumors that grocery stores could start to charge if you want plastic bags. Of course they already charge for the reusable bags (which I love), so it could end up that you’ll pay for your bags one way or the other.
It just seems like we’re getting less and less service and being charged for more and more things that used to be standard. And it seems like we’re accepting it.
Have you complained about any of these things? Do you think complaining would change anything? Share your thoughts.
Flying? Bring extra cash and a blanket
August 18, 2008
The headline of a recent New York Times article caught my eye. It is: “At Least the Airsickness Bags are Free.”
Too funny. And, unfortunately, too true.
Having just returned from a honeymoon to a foreign land (a special trip that required many, many months of dilligent saving), I learned all too well just how expensive flying has become.
It’s been several years since I’ve flown. I guess I was spoiled that last trip. The plane was spacious – as far as planes go – and pillows, blankets, meals and even a glass of wine were all part of the cost.
Those days are long gone.
You do still get a free beverage, such as water or soda. For anything else you’re going to pay and pay big, if paying is even an option.
No blanket for you
Despite the length of one of our flights, at nearly five hours, (our trip home required us to travel on no less than three different airplanes), no meals or munchies were given without handing over cash. I decided to fly hungry. Airplane meals aren’t good enough to pay extra for.
The plane was quite cold. I was wearing pants and a sweater, but I thought a blanket would be nice. It turns out with that particular airline the only people who get blankets are those who are traveling in business class (which is basically first class). The airline attendant wasn’t even pleasant when she told me that I couldn’t have a blanket, dooming me to shiver for the entire flight. I felt like I shouldn’t have dared to even ask for the blanket. Paying for a blanket wasn’t even an option on this flight.
So the people in business class sipped champagne in their large leather seats with their warm blankets while those of us who couldn’t afford that sat cramped together, cold and hungry, praying for an end to the flight.
The thing that irked me the most was that we were forced to take three flights and spend an additional three hours on a plane because the airline canceled our original flight and rerouted us. We didn’t have any say in how we got home. Then they couldn’t even give me a stinking blanket?
How much more is business class?
My new husband and I started debating whether or not we should have paid for business class. But, just how expensive would that be?
I looked up an upcoming flight to our honeymoon destination for next week. To keep it a fair comparison to our trip, I set our travel for the same days of the week, with the same airline and the same airports. It turns out that to travel business class would have cost us each an additional $662, or a total of an extra $1,324.
Those are some expensive blankets! I don’t see business class, or many flights in general, in my future.
Bring your own supplies
I apologize for the rant. Here are some helpful tips for flying on a budget:
· If you have a small blanket that can fit in your carry-on, roll it up and take it with you. If you tend to get cold on planes, wear long pants and a sweater.
· Bring snacks if your flight will be long, or if you’re traveling with children.
· If you want to take your own bottled beverage on the plane, purchase it once you’re near your gate at the airport. The new TSA rules won’t allow you to take liquid through the security screenings. The beverages in the airport are more expensive than what you buy at home, but less expensive than what you have to pay for on the plane.
· Bring your own earphones. That way you don’t have to pay for the uncomfortable earphones they sell you on the plane.
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