The Ancient Greeks tell
the story of a man who
was condemned by the
gods to endlessly roll
a rock to the top of
a mountain. Every time
the man reached the peak,
the stone would roll
back and he would start
again. In the same way,
you may be struggling
under the crushing burden
of debt that grows heavier
by the month.
Whether it's credit
cards, a mortgage,
student loans, or a
major home improvement
loan, most everyone
has a debt or two they
need to repay. However,
if this ancient Greek
tale resonates with
you as paycheck after
paycheck evaporates
in a mist of never-ending
credit card payments,
you may need to ask
yourself the tough
questions. Could you
survive without your
next paycheck? Do you
borrow money to pay
other debts? Consider
the following practices
of people knocking
on the door to a financial
meltdown:
Spending more than
20 percent of net income
on credit card bills.
You dip into your savings
or retirement accounts
to pay your monthly
bills.
Using credit cards
to pay for necessities
because you do not
have the cash.
You have more than
four major credit cards.
Depending on family
and friends to bail
you out.
Financing a car for
six or more years to
lower the monthly payment.
You need a co-signer,
which indicates you
are already over-extended.
You are hiding purchases
from family.
If any of these practices
sound familiar you
need to examine closely
your financial situation.
Don't allow yourself
to be lulled into a
false sense of security
because you're not
late with any of your
payments. Just because
you can pay your minimum
payments each month
does not mean you are
financially fit. Low
monthly minimum payments
benefit the credit
card company, not you.
The "minimum amount
due" is cleverly
calculated to keep
you shackled to your
credit cards for your
entire adult life.
Rather than continuing
to tread water with
ankle weights, recognize
you may be in over
your head. Determine
how much you have saved,
how much you owe, how
much you net each month
and how much you pay
toward monthly bills.
This analysis will
allow you to determine
how much help you need.
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