Top Tips on Debt and What You Need to Know

By: David Maillie
Submitted: 2007-01-17 16:15:21
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According to the recent news the average American cannot afford a 1 bedroom apartment anywhere on minimum wage. Costs and taxes are skyrocketing out of control along with governmental waste and fraud (see farenheit 9/11 about George Bush and family). It has gotten so that the average persons debt keeps rising and, soon basically, the average American will not be able to live without shouldering massive debt. Her are some tips on debt and how to control it There is such a thing as good debt.

Most Americans could not afford to purchase a house without a mortgage. Also, a house appreciates or increases in value unlike credit card debt. A house loan is like a forced savings program, and unlike renting, you actually build value over time. There are also tax deductions and savings on real estate. A mortgage is a very sound form of debt. I can’t say this enough. Stop renting and get a house. Else you are making your landlord rich.

Credit cards and store cards have one thing in common, they will make you poor and increase your debt. The only person getting rich off credit and store cards is the creditor, especially with high interest rates, smaller grace periods, and late fees. Tear up all but one card (keep that one for emergency usage only). Take on the adage, “If you can’t afford to pay cash then don’t buy it.” Ask yourself, “Do I really need it?” The only things you should buy with credit are a house and a car.

Make a plan to pay off you’re your debt and don’t take on any new debt. Pay off higher interest debts (usually store cards, credit cards, and payday loans). Never pay just the minimum (this will greatly increase the interest and length of the loan or debt). If you feel you are underwater with your debt and that it is unmanageable call a consumer debt agency. Make sure you look up the credit agency with the Better Business Bureau and your state attorney general as they keep tabs on these agencies. Also, most are free (don’t pay for this service as credit card companies pay for it already). These agencies can be very helpful as they can renegotiate your interest rates, debts, etc… and put together a repayment plan that will put you back on track.

Build a 3 to 6 months safety cushion. You never know what the future holds or how much worse George Bush will hurt the U.S. economy and average worker to appease his wealthy friends. Do not keep it in your savings or checking account as most banks do not pay even semi-decent returns (banks are horrible rip offs – search around as there are numerous liquid investments that are safe and offer better returns on your money). As long as George Bush is president it’s a safe bet that oil will bring great returns (George Bush and big oil go together like peanut butter and jelly).

There you have it, how to get control of your debt and life. We can’t control George Bush and why he is wrecking the U.S. economy, but we can control our own debt and take control of our lives. Maybe George Bush and most politicians could learn something here – Don’t spend money you don’t have and don’t waste it foolishly.

David Maillie is Cornell Alumni and award winning writer and researcher. For more great free info, tips and ideas like this please visit the award winning and nationally top rated blog: http://www.bestbraindrain.com

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