Finances.

Finances... money management... we usually *cringe* at the mention of anything that has to do with money. I would say 95% of people DO NOT want to discuss their financial situation with you, or me, or anyone! I, however, think if people were more open about their "money" problems, then we would be more apt to practice a little more self-control in that area. Having accountability with our spending habits would probably help us in the long-run. I believe... uh hum... that "money problems" or "financial issues" are actually a result of something deeper. Points:

• A general lack of self-control... see something, gotta have it
• Envy: my neighbor (or friend, or co-worker) just got these really cute shoes, and I just gotta have me a pair of those!
• World conformation: we have conformed to what society says is good, or right, or "the thing to do". You must purchase your clothes from (insert name of store here). Second-hand?! Not cool! Don't ever be caught dead in a garage-sale find. Well, I can be caught wearing these second-hand clothing items, but please, please, don't ask me where I got them!
• Pride: oh yes... pridefulness... gotta show off what we have (or don't really have....). I think this leads to comparing ourselves to others... what their clothes look like, what kind of car they drive, how big their house is... ect...

I'm sure there are TONS of other reasons behind "financial issues", but these are a few that really stuck out at me.  So, given all of these things, many people find themselves in a load of debt.  I'm in debt! Yeah, that's right. I have these FABULOUS things called student loans. Well, just two, and they are now under $10,000 combined. Wonderful! But not good enough for me. I don't want to pay on them anymore!  I was blessed to have lots of parental help and scholarships to help pay for my college education. But, my school debt is still there, just looming... Okay, its not that bad for (wince) five-and-one-half years of college. But, I'm ready to be done with it.  So, here it goes... I'm going to attempt to blog about finances, and the things I do or things I have learned.  I'm Dave Ramsey's newest competitor (not really). In fact, I'll probably refer to him during these blog posts.  Here's to FINANCIAL BLOG POST ONE:

Debt Consolitdation?! To do or not to do? 

I wouldn't do it. What is debt consolidation? In a nutshell: taking out ONE loan to cover a series of multiple loans. So, maybe you owe several credit cards (insert numbers), and to get out of that credit card debt, you call those guys on t.v. that are always like, "We can help you get out of debt... blah, blah, blah..." (or something like that), and then they "buy" your loan for a "deal". Then, you make one monthly payment to that company. What they don't tell you in those commercials... it hurts your credit, it will show up on your credit report, and you can't apply for new credit unless approved by the debt consolidation company.  Also, the consolidators often negotiate with your credit companies... they can get sometimes get extra fees waived, and they usually get lower interest rates. Then, when you pay the consolidating company, they take your payment and pay off your debt.  They usually give a higher portion to the credit company you owe the most to. In essence, they do what you probably could be doing yourself with a little self-control. Another point to make: call your credit card company yourself.  You can probably work out a deal with them to pay off what you owe (I know mine does... I always see it advertised on the company's home page). And, CUT THOSE DARN THINGS UP AND TRASH THEM! Seriously. If you don't have the money, DON'T get it. And, for the things you absolutely have to have a credit card for (i.e. hotel reservations), they will take a bank debit card, used as credit!

So, here's my first advice where debt consolidation is concerned, don't do it. Call the companies yourself, and work out a deal if possible, then cut your spending, and put that extra money towards your debt. I would pay my smallest debt first, then work up to your largest debt. Here's why I would do it that way. The smallest is the easiest. And, when its paid off quickly, you have a sense of satisfaction.  You think, "Hey, I can do this..." and it just builds your confidence to working on debt-free living!


*Please note: I am NOT a financial advisor. These financial blogs are my own opinions. I have researched the advice I post, and this is what I think.