The first step to debt free living is to stop the borrowing. You’ve got to stop borrowing. The worst thing you can do is start paying down your debt while still using your credit cards.
Just say, “that’s it, I’m not borrowing anymore.”
Check previous posts for getting real mad about your situation.
Think of it this way. If you go to the doctor bleeding from your hand what is the first thing you want the doctor to do? Do you tell him to do surgery? Do you tell him to check out a bruise on your leg?
NO!
You ask the doctor to stop the bleeding.
If you’re still using your credit cards you’re still bleeding. And if you’re still bleeding you aren’t solving the problem.
Stop the bleeding first. Stop spending on your credit cards. Cut them up, put them in a drawer, stick them in a safety deposit box, freeze them, but what every you do quit using your credit cards.
The first step is to stop the bleeding. Stop using your credit cards and you’ll stop the bleeding.
David Dassow
Saturday, May 3, 2008
What credit card companies don't want you to know
Anytime a credit card company calls you “good-credit people” start running. Credit card companies refer to people who keep balances on their credit cards as quality folks. The credit card companies love you when you owe them money.
If, on the other hand, you pay off your credit card balance at the end of every month…the credit card companies don’t like you…and don’t be surprised if they cut you off. Basically, the credit card people think of you as a “dead-beat” if you pay off your credit cards every month.
Now, think about this for a moment. If the big credit card companies love you when you owe them money and consider you a good-credit customer what does that really say to you?
Maybe you (and me) are the dummy?
Credit card companies are in business for one thing and one thing only…Money. They want your money. Credit card companies loan you money and hope you don’t pay it off so they can make 13% - 24% interest.
The rest of the story is if you pay the minimum payments on credit cards it will take you 27 years to pay it off with thousands of thousands of dollars you’ll pay in interest. Way more money than what you originally borrowed.
So, the next time a credit card company tells you you’re such a good customer begin to run quickly. Unless you beat the banks at their own game…paying off your credit cards and not having to pay the big banks interest is the smart way to go.
Why don’t you become a bad customer to the bank…a dead-beat because you’ve paid everything off and now the big credit card companies can’t make any money off you.
David Dassow
If, on the other hand, you pay off your credit card balance at the end of every month…the credit card companies don’t like you…and don’t be surprised if they cut you off. Basically, the credit card people think of you as a “dead-beat” if you pay off your credit cards every month.
Now, think about this for a moment. If the big credit card companies love you when you owe them money and consider you a good-credit customer what does that really say to you?
Maybe you (and me) are the dummy?
Credit card companies are in business for one thing and one thing only…Money. They want your money. Credit card companies loan you money and hope you don’t pay it off so they can make 13% - 24% interest.
The rest of the story is if you pay the minimum payments on credit cards it will take you 27 years to pay it off with thousands of thousands of dollars you’ll pay in interest. Way more money than what you originally borrowed.
So, the next time a credit card company tells you you’re such a good customer begin to run quickly. Unless you beat the banks at their own game…paying off your credit cards and not having to pay the big banks interest is the smart way to go.
Why don’t you become a bad customer to the bank…a dead-beat because you’ve paid everything off and now the big credit card companies can’t make any money off you.
David Dassow
Debt means you'll mortgage your future for today
“Debt keeps you stuck in the trap of using your future to pay for your past.” --Mary Hunt
It’s a difficult concept to understand. But once you get it you GET IT. When you owe money, when you’re in debt, especially when you’re in debt up to your eye balls, you are unequivocally, without a doubt, spending your future earnings to enjoy today, the now.
If you make $50,000.00 dollars a year and spend $75,000.00 dollars a year you’ll pay the difference of $25,000.00 in future income. Here’s the frightening part. Spend twenty-five thousand dollars more than you make for five years and you’re in the hole $125,000.00 dollars.
I mean really, how the hell are you gonna pay it off? Continue financing? Continue borrowing more than you make? Are you nuts?
There are only three possibilities to getting out of debt. Possibility number one, spend less than you make and use the difference to pay off debt. Possibility number two, make more money. Possibility three, sell assets, do garage sales and what-ever-else to generate extra dollars.
Understand that if you owe money you are mortgaging your future for the past, or the present.
David Dassow
It’s a difficult concept to understand. But once you get it you GET IT. When you owe money, when you’re in debt, especially when you’re in debt up to your eye balls, you are unequivocally, without a doubt, spending your future earnings to enjoy today, the now.
If you make $50,000.00 dollars a year and spend $75,000.00 dollars a year you’ll pay the difference of $25,000.00 in future income. Here’s the frightening part. Spend twenty-five thousand dollars more than you make for five years and you’re in the hole $125,000.00 dollars.
I mean really, how the hell are you gonna pay it off? Continue financing? Continue borrowing more than you make? Are you nuts?
There are only three possibilities to getting out of debt. Possibility number one, spend less than you make and use the difference to pay off debt. Possibility number two, make more money. Possibility three, sell assets, do garage sales and what-ever-else to generate extra dollars.
Understand that if you owe money you are mortgaging your future for the past, or the present.
David Dassow
Friday, May 2, 2008
Are you mad yet?
Working with a couple on debt reduction recently I finally just had to ask them this question…so being the untactful guy I truly am I just blurted it out…
“Are you mad yet?”
They sort of looked at me puzzled and I repeated the question. “Are you mad yet?”
Well the long and short of it is they were not mad yet.
You’ve heard me refer to this a bunch. You’ve got to get mad about your situation. You’ve got to start saying to yourself “I’m sick and tired of this and I’m not going to take it anymore!”
Until you do this, until you get real mad, you won’t do anything other than give it lip service.
True change begins inside of you. Once the change occurs inside of you your actions will begin to reflect the necessary “behavioral changes” to get you on track.
If you want the strategies to get you debt free, look at previous posts. If you aren’t mad yet, get mad.
The madness is what’ll change you.
David Dassow
“Are you mad yet?”
They sort of looked at me puzzled and I repeated the question. “Are you mad yet?”
Well the long and short of it is they were not mad yet.
You’ve heard me refer to this a bunch. You’ve got to get mad about your situation. You’ve got to start saying to yourself “I’m sick and tired of this and I’m not going to take it anymore!”
Until you do this, until you get real mad, you won’t do anything other than give it lip service.
True change begins inside of you. Once the change occurs inside of you your actions will begin to reflect the necessary “behavioral changes” to get you on track.
If you want the strategies to get you debt free, look at previous posts. If you aren’t mad yet, get mad.
The madness is what’ll change you.
David Dassow
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