Drowning in Debt? Let’s Hit it from Both Sides!

Published Tuesday, January 29th, 2008 in Living the Life

Americans are drowning in debt. The average American is carrying over $9000 in credit card debt. Many also plus upside down auto loans, ballooning mortgage payments, and college loans.

Is there a Middle Class Lifeboat amidst this sea of debt?

“Yes!” say financial experts/authors Paul and Sarah Edwards, who are conducting Talk Show interviews on this topic.

Paul and Sarah, authors of “Middle Class Lifeboat: Careers and Life Choices for Navigating in a Changing Economy,” share with your audience simple, tangible steps to begin the bailing process to get out of debt:

Credit card debt

Renegotiate high interest rates – the federal law permits 30% so get that rate DOWN!
Transfer as much credit card debt to zero percent credit cards; transfer the balance to another zero percent credit card before the zero percent offer expires – often a year.

Mortgage debt
Call the loan workout department of your lender of the company servicing your loan; explain you don’t want foreclosure and ask them to reset the mortgage interest rate
Refinance your mortgage if you qualify – rates are a point lower than a year ago.
Auto loans – particularly if you owe more than your vehicle is worth
Do you need a gas guzzler- one you got for recreational activities or vacations you can no longer afford? Get what you can and take advantage of bargains on used vehicles.
Only if your auto loan rate is high (over 10%), consider refinancing.
Take a fresh look at your expenses
Simply simplify. Ask yourself, “What would happen if I didn’t have or do …..” This will help you divide what you want from what you need. Are restaurant meals, outside services, away-from-home vacations

Develop new habits
Pay with cash for instead of a credit card yourself. It may help to leave your credit cards at home or even cut them up.

Get outside help

Debt counseling at a consumer credit counseling agency affiliated with National Foundation for Credit Counseling, 800-388-2227, www.debtadvice.org/takethefirststep/locator.html
Bankruptcy is a last resort – it puts a cloud on your credit for ten years
Debtors Anonymous, 781-453-2743, www.debtorsanonymous.org

I might also add this: be sure you are tithing. We need to do the practical, natural things. But we also need to obey God’s spiritual laws. The first 10 percent belongs to Him. If you ante up, He promises to rebuke the devourer. He also promises to open the windows of heaven and pour out a blessing so great you can’t even hold it all. It’s time to get out of debt and live in the overflow so we can create wealth and establish His covenant.