NataliePace.com Home Page Article
to Eliminate Credit Card Debt.
by Steve Dietrich,
President, Financial Research Group.
basics of getting out of debt, including credit card debt, are easy. Not necessarily
easy to do, or we wouldn't have an average of almost $16,000 in credit card
debt for those who are carrying balances, and 1/3 of Americans wouldn't be carrying
$10,000 of nonmortgage debt. But living within your means is doable, even if
you have debt now, if you are willing to be brave and address the real issue
here -- spending isn't happiness and you can have a lot of fun for free!
here are 10 Tips to Get Out of Debt and Enjoy Yourself More at the same time.
- Only buy what you can
pay for at the end of the month with current earnings
- If you have a balance
get rid of it using whatever you need to, other than using assets that would
be protected in a bankruptcy
- Develop a plan to get
rid of debt
- Substitute other free
fun things instead of trying to buy happiness -- library, short trips,
reading, exercise, home barbecues, sex.
- Teach your kids to do
more with less. Get your kids into Scouting. It gives them
a lot to do, changes values and teaches them things that may save your life.
- Instead of a fancy restaurant
go to a nice restaurant that has a nominal or no corkage charge, and take
a nice bottle of wine.
- Consider turning off
the TV, off with the smart phones and give each other a pre dinner foot massage
with wine and quiet. If you have the cash flow, and you are pretty sure you
are not moving in the near future, look at refinancing your house at today's
low rates. DO NOT ROLL YOUR CREDIT CARD DEBT INTO YOUR HOME LOAN UNLESS YOU
ARE ABSOLUTELY COMMITTED TO CHANGING YOUR WAYS AND HAVE PROVEN THAT YOU CAN
- Consider the option
of taking a shorter loan term (fully amortized) on your home, as you will
get a lower interest rate and your home will be free and clear sooner.
Even if you sell in 5 years the marginal yield on the extra payment is substantial
(based on a .5% spread between 15 year and 30 year fixed rates).
- There are two important
differences between owing money to your credit card company and owing it to
the mafia. The mafia is more understanding and their rates to people
who are bad credit risks are usually better.
- If you will be unable
to pay the bill at the end of the month, do not put anything further on the
- Treat yourself to good
things, but not wasteful things.
This plan preserves the
essentials of life -- good wine, food friends, sex and intellectual stimulation.
None of those can or should be put on credit! They should be enjoyed here and
now -- for free, whenever possible.
For details on how to eliminate
debt forever and to get your questions answered, join Steve Dietrich in Natalie
Pace's call-in radio show on Tuesday, February 21, 2012 at 9:00
a.m. Pt. Call-in number is: (347) 215-7305.
About Steve Dietrich
is the co-founder and president of Financial
Research Group, a 30+ year old Southern California based real estate development
and consulting firm. He is a former Guest Lecturer at the Anderson Graduate
School of Business at UCLA, where he created and taught the school's course
in Entrepreneurial Real Estate Development.