Debt Under Construction
by Alyice Edrich |
| Alyice is the author of Build Upon A Firm Foundation: Financial Help With
A Biblical Twist, and the editor of a national publication for BUSY
parents.
Subscribe to her free e-newsletter to win a free book! |
Warning:
Americans are filing for bankruptcy at an alarming rate. Spending is
out of control. Arguments over finances are destroying families.
Financial stresses are among the top five reasons couples divorce.
 Debt has a way of creeping up on us.
In time, it begins to take on a life of its own, causing deaths
of families. But it doesn’t have to be this way. Debt can be
controlled and marriages can be saved. People don’t have to live
paycheck to paycheck.
People don’t have to spend their
lives working to pay off past debts. We can stop looking back. But
it’s going to take work. The following are ways to help each of us
get out of debt:
| 1) |
Take
the time to understand why you spend, when you do. What is the
underlying issue? Did you come from a poor family? Were you
never taught money management skills? Did you always get what
you wanted, when you wanted it? Are you sad and lonely, and
find spending money eases the pain? Is keeping up with others
important to your self-image? |
| 2) |
Get
out all your bills. List them according to company name,
interest rate, balance, monthly payment, and interest paid out
each month. |
| 3) |
Send
the kids on a sleep over adventure with a neighbor or
relative. Order take out, and sit down with your spouse to
discuss a course of action; a way to get out from under all
that debt. Don’t argue over who spends more, or who made the
debt. Don’t place blame (it only puts up walls) because
nothing will get resolved. Instead, think about solutions. |
| 4) |
Decide
how much “mad money” each person is going to get each
month. Mad money is money that can be spent anyway the holder
of that money wants. And the best part about it is that you
don’t have to feel guilty about it. |
| 5) |
Decide
which bills you are going to concentrate paying off first, and
which ones you are only going to pay the minimum on. |
| 6) |
Agree
not to charge anything else on any of the credit cards, unless
it’s a dire emergency, until all cards have a zero balance. |
| 7) |
Agree
not to open up another charge account. |
| 8) |
Decide
whether consolidating these bills would be the best solution
for your family. And if you decide yes, decide how much money
you are willing to pay in fees, points, and interest rates. |
| 9) |
Decide
who is going to take over paying the bills, or is it going to
be a team effort. |
|
