Help Getting Out Of Debt – Get Out Of Debt Plan

Posted on | July 19, 2009 | No Comments

Given the current climate of the economy in the United States, I think many of us are in the same boat. We are looking at ways to decrease our overall debt, and increase our personal savings. As a matter of fact, I just read an article in the Wall Street Journal last week that said that in 2007 the average percent of savings Americans were setting aside was 0%. That is INSANE. American households were basically spending everything they earned, and then some. However, there has been a trend towards increased savings by American families. It would appear that only two years later (2009) American households have begun to put away 7%. That is a fairly large increase in a two year period.

Saving money is a huge key to being able to position yourself to get out of debt. The Internet is full of money saving ideas, and I firmly believe that it is worth your time to get out there and research them. Don’t listen to the clowns in the media and government that will tell you that you have to spend to keep America healthy. Americans need to shy away from the many “get rich quick” ideas that are out there and simply begin to save their wealth.  Also, while a cash advance network may provide a short term solution to a liquidity, it should not become a way of life.  What they need to do is stop spending, pay down debt, and save. It is our only hope as families, and it is our only hope as a country.

Saving is a critical step to coming out of indebtedness. You need money in the bank so that you don’t have to turn to credit cards or payday loans each time a crisis comes up. Dave Ramsey (Total Money Makeover) says your short term goal should be $500 in the bank, and then $1,000. His reasoning is very solid. If the car breaks down or the washing machine fails, it is better to take it out of your savings account and then pay yourself back. Otherwise, you have to pay the credit card company an exorbitant amount of interest and minimum monthly payments until you are 95.

Work hard to save the money you need to have in the bank, make some sacrifices. It will be worth it. Trust me.

Cheers.

Help Getting Out Of Debt

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