Saturday, October 29, 2011

Getting Out of Debt On Your Timetable

Many readers may find these solutions overwhelming.

Overwhelming? Is that not what your debt is?

Some may say, "But my situation isn't that bad" and then go on to describe exactly how bad their situation actually is.

Of course I'm not in your exact situation. I can't be in anyone's exact situation. That's why I've discussed the underearner as well as the compulsive shopper. That's why I say the amount of your debt is not the issue. Donald Trump once owed over 9.2 billion dollars to 99 banks. In the middle of a dark and rainy night, he ran 15 blocks ( the limo was not available) to make phone calls to all his creditors from another's creditor's conference room where he confirmed he was good for the debt and would pay it off in due time, and it wouldn't take a millenium. In the book, he said his big mistake was promising to always pay the interest, then advised to never promise anything. The Financial Genie agrees with that sound advice.

All of us at one point or another, made a decision to take out unsecured debt and then we purchased lots of things and the things became more things and those things had baby things. And now we're screeching like banshees about how bad things have become.

This book is about debt and offers a way to get out without giving in to your creditors. You're going to be doing things on your timetable and in a way that's convenient for you. We are not about to tell you to obey the orders of the creditors. They are not managing us. We are the drivers of this locomotive and as such will come up with inspiring solutions, at which point we get to say I did it without caving. We did it because it felt good to act like a professional business person doing business with creditors.

You are the solution dealing with the problem, which will over time nest itself somewhere in a cabinet drawer out of sight and soon out of mind. Payments will be made. Offers of 50% off the debt will come in. My advice is not to accept that offer, but thank them for the kind offer and continue to make your regular payments. Why? Because you will have to file a 1099 form at the end of the year which means the 50% they discounted you is counted by the IRS as income. So don't do it. Unless you want to pay more in taxes. In this instance, the call is yours.

Continue to pay what you can and steadily and slowly over time your life will start to improve. Just how will it improve? The old way of shopping for all the schlock you thought you couldn't live without is going the way of the Edsel automobile, a good idea at the time, but not a very good purchase. You'll find more time to spend on the important elements of your life, your hobbies, your vocation, your job, fun playing with family and friends, going to the games, going to the mountains or the beach and taking time away from everything. Now you get to be CEO of celebrations, in charge of all the fun.

The Financial Genie believes this is the party planet. I know. I know, the Genie gone wild. Don't you want to relax and play and have fun and be happy and free? Freedom, remember that? That's how I felt when I graduated from high school and went to the beach with my classmates, alone without parents, the radio blaring in the VW. Suntanned, happy and joyously free.

This is when you might consider writing your own Mission Statement or Declaration of Independence, a template of how you'd like your life to be going forward.

"For a while, the only evidence of your financial progress will be your improved emotional state of being, and if you will let that be enough - taking no score of financial progress - the financial improvement will show up." ~ Abraham - Hicks

No comments:

Post a Comment