Your credit score has been decimated, you may have lost your job or taken a reduction in pay, your 401K fell like a rock, you may have even lost your home or are facing a foreclosure. After all this, do feel like the financial crisis is behind you?
Reports last week show the economy grew at 5.9% in the fourth quarter of 2009. The stock market is still down from its highs, but is up about 70% over the past year and the White House is stating the "The trend has turned."
For many, including me, our financial recovery is far from over. My income had fallen to a third of what it once was, I accumulated over six figures of debt, my credit, which was once had a high FICO score of 811 has most assuredly taken a dive, and my homes have lost over a quarter million in combined value.
If you are experiencing similar circumstances you are probably feeling like there is no way things will ever get better. But is it really as bad as it seems? A number of studies by behavioral finance experts show, we are naturally programmed to think things are worse than they actually are and thoughts like that can actually keep you from getting your finances back on track.
Taking control of your money means taking control of your emotions that can prevent you from making wise financial decisions and that would normally guide you in devising an action plan to help reach your financial goals.
I have felt like there was no hope of paying off my debt both times that I hit the six figure mark. Both times I looked at bankruptcy as the only answer, but it doesn't have to be that way.
I had really thought back about the first time I was in massive debt and how I paid it off. This second go around at six figures of debt is no different.
The feelings of hopelessness have begun to fall by the way side. The first time I decided bankruptcy wasn't an option for me I developed a plan and stuck to it and just as I paid off that debt in five years I have developed a new financial plan to payoff this debt in five years too.
This mindset along with the first stage of my plan (get on a debt reduction program) has begun working wonders with my finances.
Talking to my creditors and putting my credit cards on balance liquidation programs with Chase and Bank of America has begun to turn my emotions from despair to abundance.
With the Chase accounts having their interest rates dropped to 0.00% and thousands of interest charges being waived has allowed my to see light at the end of the tunnel. Just looking at the statements and watching the balances go down gives me such a thrill now it just makes me want to keep going and as Dave Ramsey says, "Run from that debt like a gazelle."
So make a plan and stick to it. Come out of the closet and let people know the jam you are in. Research shows you make better progress towards your goals if you are kept accountable. Let your family and friends know your plans.
If you don't feel you are ready to tell them yet you can tell me. Just email me and I'll encourage and hold you accountable to paying off your debt. If that doesn't work for you either you can make a "commitment contract" on Stickk.com, which will force you to cough up cold hard cash if you don't make your goal. Whichever way you want to come clean--just do it already!
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
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