Blog 218 – 01.28.2016

Like many Americans with credit card debt several years ago I despaired of ever getting out of debt, of ever being able to retire. But I have changed my mind. First of all the banks and the credit card companies do not want you getting out of debt. The interest they are charging you is making them rich. Some years ago the federal government passed a law requiring the credit card companies to print on your monthly statement how many years it would take you to pay off the debt making the minimum payment. It was eye opening that to pay off a $6,000 debt paying the minimum payment would take about thirty two years.

In the nineteen seventies there was a Black Sitcom that had a theme song with a line that spoke of “easy credit rip off.” It is a interesting fact that people seem more concerned with their credit rating than being debt free or having enough money to buy what they want without borrowing. For a capitalist country it is astounding that one percent control ninety nine percent of the wealth. Today legal lending institutions charge interest rates that even loan sharks would have blushed to charge twenty or thirty years ago. Neither a borrower nor a lender be is an outmoded adage that we ought to bring back.

The steps to getting out of debt remind me of the first aid steps I learned in the military so many years ago:

1. Stop the bleeding.
2. Clear the airway.
3. Prevent or treat for shock.
4. Make the victim comfortable.

One – Stop the bleeding. Quit spending money you do not have.

Two – Discover the blockage preventing money from flowing to you. The two main causes of such a blockage that come immediately to mind are: Failure to maintain an attitude of gratitude. Nothing will stop the flow of good things and money to you like being ungrateful for what you already have. And the second is like it a selfish unwillingness to share. He or she who does not have enough to share is poor indeed.

Three – Prevent or treat shock. Shock is a trauma or an out of control condition in the body that is so serious that it can lead to sudden death. A friend once joked that death is nature’s way of telling you that you’ve got to slow down. Well, shock is the body’s two minute warning that time is running out and that it will soon be Game Over. Run, kick or get off the field or pot.

Four – Make the victim comfortable. Life is mean to be good. Your income is meant to provide not just the basics but comfort in you life. Every credit card or debt you pay off means you have a bigger slice of your own pie to enjoy. I suggest you attack the lowest card balance first. You need a victory as soon as possible in the war on debt to celebrate. Credit cards are the enemy and after you knock them off one by one you will soon be singing, “I’m rich, I’m rich.” Someone has said the definition of rich is: “Enough.” Hence the reason many very rich people will not admit to being rich, because their pile isn’t big enough yet. But at the same time it is as true of life as it is a meal, “Enough is as good as a feast.” Good luck getting out of debt. The first step is believing you can.

Your friend and fellow traveler,
David White