At the risk of sounding like a buzz kill, let me ask my fellow Americans, what the hell is wrong with you.
Black Friday and Cyber Monday sales went through the roof. Great for the stores, but idiotic for consumers. I will bet every nickel I have that almost all of that is on credit. The Cyber purchases are definitely on credit.
I love to give gifts, but I do not love paying interest charges on things I cannot afford. Some of you will never, ever pay off those debts. You will spend a very long making minimum payments that barely cover the interest. I know, every one intends to make bigger payments, but something always comes up. Your car dies. The kids get sick. The refrigerator breaks down. It is always something and there you are with unneeded debt.
And God help you if you miss a payment, or even if you are late. Then your credit rating takes a nose dive.
Enjoy your holidays, by all means, but set some limits. Buy and give gifts, but make restrict them to what you can afford. I know this sounds trite, but it is true; it is the thought that counts.
Showing posts with label Credit. Show all posts
Showing posts with label Credit. Show all posts
Thursday, December 1, 2016
Wednesday, November 2, 2016
After the Election - Watch Your Back
I do not use this blog for politics, but today, I am making an exception. The elections will be over soon and no matter who you support, watch your back. No matter who wins, things will not be good. If either candidate gets control of congress and thus gets their way, you will see the deficit, the National debt, go through the roof.
Both are proposing programs that will cost unbelievable amounts of money. On problem, we are broke and deeply in debt. Yet, they are both proposing tax programs that will not come close to even balancing the budget, must less paying down the massive debts.
This makes our standing in the World economy a wee bit shaky and this will effect both the value of the dollar and the willingness of foreign governments to invest by buying our Treasury bills. Add to this the pledge both behave made to raise the minimum wage (which will just be passed on by increased prices) and the shakiness of our economy and you will, I guarantee this, see inflation and job loss. This is called stagflation and it is a nightmare.
In addition, medical costs are rising, in large part due to the incredibly stupid mess of Obamacare. How long gas prices will stay low depends on the whimsy of the Saudis. Increased oil prices drastically effect food costs as well as home heating.
Things will not be good. The solution? First, stay healthy. Even if you are insured, not only are your premiums going up, your deductibles are also rising. For example, in Arizona, you will likely have a $5000 + deductible. So, stay healthy.
If you have a job, keep it. Hold onto it like grim death. If you dislike your job, learn to like it. If you become unemployed, you will be in deep difficulty.
Most of all, pay down your debts as quickly as possible. If that means skipping a ball game or a dinner out, live with it. If that means your kids can't have the latest, most fashionable shoes, they'll get over it. Do not put Christmas on your charge cards. Again, no one likes cutting back, but you really need to get rid of your debts.
Learn to do as much as you can around your home. A lot of repairs are simple. It is easy to cook instead of depending on take out and cooking yourself is cheaper than buying frozen dinners. Do it yourself, within reason, should be your motto.
Eventually, things will perk up again, but you have to be sensible. Watch your back. Watch the backs of friends and family. You have to, because, Uncle Sam is not going to be your buddy for a while.
Both are proposing programs that will cost unbelievable amounts of money. On problem, we are broke and deeply in debt. Yet, they are both proposing tax programs that will not come close to even balancing the budget, must less paying down the massive debts.
This makes our standing in the World economy a wee bit shaky and this will effect both the value of the dollar and the willingness of foreign governments to invest by buying our Treasury bills. Add to this the pledge both behave made to raise the minimum wage (which will just be passed on by increased prices) and the shakiness of our economy and you will, I guarantee this, see inflation and job loss. This is called stagflation and it is a nightmare.
In addition, medical costs are rising, in large part due to the incredibly stupid mess of Obamacare. How long gas prices will stay low depends on the whimsy of the Saudis. Increased oil prices drastically effect food costs as well as home heating.
Things will not be good. The solution? First, stay healthy. Even if you are insured, not only are your premiums going up, your deductibles are also rising. For example, in Arizona, you will likely have a $5000 + deductible. So, stay healthy.
If you have a job, keep it. Hold onto it like grim death. If you dislike your job, learn to like it. If you become unemployed, you will be in deep difficulty.
Most of all, pay down your debts as quickly as possible. If that means skipping a ball game or a dinner out, live with it. If that means your kids can't have the latest, most fashionable shoes, they'll get over it. Do not put Christmas on your charge cards. Again, no one likes cutting back, but you really need to get rid of your debts.
Learn to do as much as you can around your home. A lot of repairs are simple. It is easy to cook instead of depending on take out and cooking yourself is cheaper than buying frozen dinners. Do it yourself, within reason, should be your motto.
Eventually, things will perk up again, but you have to be sensible. Watch your back. Watch the backs of friends and family. You have to, because, Uncle Sam is not going to be your buddy for a while.
Friday, August 26, 2016
Learn To Duck
Times are downright weird, that is undebatable. If you have a nice secure job that you love (okay, love may be too strong a word, let's try 'find tolerable', instead), count yourself lucky and hang on for dear life. But, trust me, I know from hard earned personal experience, that nothing is secure. That is just how the World is, and things are especially shaky now.
So, the smart and practical person learn how to duck. When trouble rears its head, you need to be ready to move quickly. There are a few things you can do.
First and most important, relax. If you are all uptight, your vision and reflexes will not be at their best. It is easy to freeze when the unexpected arises and you cannot afford to waste time. Just remember, you are smart and like a cat jumping from a tree, you will land on your feet, if you do not tense up.
Second, try, try very hard, to keep caught up on your bills. Nothing is worse than having troubles when you are deep in debt. Stay away from credit, pay down your car and house as quickly as possible. You do not have to live like a monk, but do try to avoid most unnecessary expenditures.
Third, if possible, find a way to bring in some extra money and put that away. Even a few hours a week helps. If you do not want a part time job working for someone else, start something of your own. Use your imagination, If you like to write, try your hand at that. If you like gardening, open a small business doing that. Clean houses, deliver newspapers, deliver phone books (I made some much needed money doing that one summer and it wasn't bad), anything. Again, you need not work 24/7 but those few extra dollars help. And, that part time work leads me to point four.
Fourth, whatever you are doing, learn to do something else. The economy is changing rapidly and a field that had many job openings one year, may have none the next. Learn to be flexible. You can never have too many job skills and being able to work in any of several fields gives you a better chance of staying employed.
Eventually, in everyone's life, there comes a point when the crap hits the fan. The smart, practical person is always ready to duck.
So, the smart and practical person learn how to duck. When trouble rears its head, you need to be ready to move quickly. There are a few things you can do.
First and most important, relax. If you are all uptight, your vision and reflexes will not be at their best. It is easy to freeze when the unexpected arises and you cannot afford to waste time. Just remember, you are smart and like a cat jumping from a tree, you will land on your feet, if you do not tense up.
Second, try, try very hard, to keep caught up on your bills. Nothing is worse than having troubles when you are deep in debt. Stay away from credit, pay down your car and house as quickly as possible. You do not have to live like a monk, but do try to avoid most unnecessary expenditures.
Third, if possible, find a way to bring in some extra money and put that away. Even a few hours a week helps. If you do not want a part time job working for someone else, start something of your own. Use your imagination, If you like to write, try your hand at that. If you like gardening, open a small business doing that. Clean houses, deliver newspapers, deliver phone books (I made some much needed money doing that one summer and it wasn't bad), anything. Again, you need not work 24/7 but those few extra dollars help. And, that part time work leads me to point four.
Fourth, whatever you are doing, learn to do something else. The economy is changing rapidly and a field that had many job openings one year, may have none the next. Learn to be flexible. You can never have too many job skills and being able to work in any of several fields gives you a better chance of staying employed.
Eventually, in everyone's life, there comes a point when the crap hits the fan. The smart, practical person is always ready to duck.
Thursday, May 5, 2016
The Pitfalls of Debt
I am going to give some advice, something I rarely do. I am sure you have heard it before but this is one of the most important things you can do. Avoid debt. If you are in debt, pay it off as soon as possible, even if you have to scrimp on everything to do so.
Debt is crippling. When you start paying interest on money you owe, you are immediately losing. Even at low interest rates, when you carry a debt for years, you are costing yourself a lot of money. Of course, some things almost always have to be paid off over time. Few of us can pay cash for a car or house. If you are that fortunate, consider yourself blessed and take advantage of your good fortune. If you are like most of us, use your head. Do not buy that really cool sports car when a nice, sturdy sedan will suffice and do not buy more home than you need. Very few need a huge house on a large lot. Buy what you can afford and be happy, very happy, when you pay it off. Get the best deal you can and make sure, even if you have to eat Ramen Noodles a few nights, that you never miss a payment. Do not even be late on payments, penalties are unnecessary expenses. Whenever possible, make extra payments and get that debt off your back as soon as you can.
Once you have paid off a car, drive it until it just cannot be repaired anymore. Take good care of it, keep the body and interior in good repair and do not let needed engine work go ignored. Yes, all that costs but not nearly as much as a new car.
If you have paid off a house, rejoice and stay there as long as you can. Tired of the way it looks? Home remodeling is a lot cheaper than buying a new one.
As far as other forms of credit, avoid them. I do think it is good to keep 1 credit card for use in absolute emergencies. Your 12-year-old's desire to get a new, $100 pair of sneakers is not an emergency, nor is you desire to go to that football game next weekend. Also, credit cards are good to use when traveling. No one in their right mind wants to carry a few $1000 in cash around but, and this is especially important, pay off the entire balance when the next bill comes due, and never, ever be late with a credit card payment. I used to work selling credit card offers and they sounded great. No interest for a year is great, but, if you are late for one payment, the full interest late, along with late fees kick in and you suddenly are way behind. Also, when that interest free period ends, if you have a balance, you will immediately start paying those big interest rates and it becomes very hard to catch up. That is how credit card companies can make those great offers. They count on people falling behind because then they start making their money. Do not get caught in that game. If you must use your card, make sure you pay off the entire balance when due, even if it means skipping a Friday night dinner out or two.
About the only debt I can think of that you may have trouble avoiding is hospital and doctor debt. If you develop a serious illness, you have no options and most insurance will not cover everything, unless you pay a great deal for that policy. If you run up deep medical debts, work out a payment schedule that you can afford. Most hospitals and doctors are actually pretty good about working with you.
Again, I know this is all old news to you, but this is the best advice I know, Stay out of debt and if you cannot, pay off all of your debts as soon as possible. Being debt free is liberating. You will be absolutely amazed at how much stress you shed when you find yourself free of debt.
Debt is crippling. When you start paying interest on money you owe, you are immediately losing. Even at low interest rates, when you carry a debt for years, you are costing yourself a lot of money. Of course, some things almost always have to be paid off over time. Few of us can pay cash for a car or house. If you are that fortunate, consider yourself blessed and take advantage of your good fortune. If you are like most of us, use your head. Do not buy that really cool sports car when a nice, sturdy sedan will suffice and do not buy more home than you need. Very few need a huge house on a large lot. Buy what you can afford and be happy, very happy, when you pay it off. Get the best deal you can and make sure, even if you have to eat Ramen Noodles a few nights, that you never miss a payment. Do not even be late on payments, penalties are unnecessary expenses. Whenever possible, make extra payments and get that debt off your back as soon as you can.
Once you have paid off a car, drive it until it just cannot be repaired anymore. Take good care of it, keep the body and interior in good repair and do not let needed engine work go ignored. Yes, all that costs but not nearly as much as a new car.
If you have paid off a house, rejoice and stay there as long as you can. Tired of the way it looks? Home remodeling is a lot cheaper than buying a new one.
As far as other forms of credit, avoid them. I do think it is good to keep 1 credit card for use in absolute emergencies. Your 12-year-old's desire to get a new, $100 pair of sneakers is not an emergency, nor is you desire to go to that football game next weekend. Also, credit cards are good to use when traveling. No one in their right mind wants to carry a few $1000 in cash around but, and this is especially important, pay off the entire balance when the next bill comes due, and never, ever be late with a credit card payment. I used to work selling credit card offers and they sounded great. No interest for a year is great, but, if you are late for one payment, the full interest late, along with late fees kick in and you suddenly are way behind. Also, when that interest free period ends, if you have a balance, you will immediately start paying those big interest rates and it becomes very hard to catch up. That is how credit card companies can make those great offers. They count on people falling behind because then they start making their money. Do not get caught in that game. If you must use your card, make sure you pay off the entire balance when due, even if it means skipping a Friday night dinner out or two.
About the only debt I can think of that you may have trouble avoiding is hospital and doctor debt. If you develop a serious illness, you have no options and most insurance will not cover everything, unless you pay a great deal for that policy. If you run up deep medical debts, work out a payment schedule that you can afford. Most hospitals and doctors are actually pretty good about working with you.
Again, I know this is all old news to you, but this is the best advice I know, Stay out of debt and if you cannot, pay off all of your debts as soon as possible. Being debt free is liberating. You will be absolutely amazed at how much stress you shed when you find yourself free of debt.
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