I must share that as I have been interviewed for online radio shows these first two weeks of the year, the topics have been about credit and getting out of debt. That is understandable and it also leads us to discussing the housing market. So many people have been affected and people look forward to a new beginning, for some this is not happening. As a matter of fact their situation has gotten worse. For example, not only are people having a hard time paying their bills now it appears they are beginning to fall behind in paying their credit card bills.

Let me share that I am one of those people that always look forward to a new beginning with very realistic goals. I tell you if you are a person that already has a hard time paying credit card bills at the onset of the year, it is time to take action. There are many financial situations to really look at such as housing, gas (which has continued to increase) and the cost of food has not declined. I remember once as I was going through a drive thru to get some lunch for our kids and the lady working the window was fussing about the cost of food increasing but not her salary. This is a situation many people are facing. They seriously have to choose which bill to pay.

We have all heard I am robbing Peter to pay Paul. So what do you do with finances as you begin the New Year? One of the things I recommend is write down all of the bills you have to date. Second make a commitment to yourself to not add any new bills and get the current bills in a manageable state. Why do I say this because if it has gotten really close to where you almost could not pay your mortgage, it is imperative that you evaluate your needs and wants. I strongly recommend cutting the cable off and getting rid of the cell phone. Look at the rules for the cell phone and make sure you know what the rules. Different cell phone policies have a disconnect fee. Look at everything.

I read an article where Capitol One started reporting a rise in delinquencies. American Express reported an increase in late payments whereas they have been known for customers with excellent credit. When there are issues with mortgage payments, there are usually other financial obligations that end up in the same situation. I ask that you do not beat yourself up, but figure out a realistic plan for you and your household.

What I have shared with these interviewers is do what needs to be done in order to reduce and eliminate debt. Once this happens you will see how other areas of your life begin to clean up as well. You might find yourself give 110% at work versus 75% because you were concerned about money. Now you can freely excel in your job. If your health had begun to deteriorate and you free up some of the debt, you will find your health getting in order. Do not take this lightly. Now is the time to establish a DOABLE plan and WORK your plan. I wish you financial happiness.

Dr. Taffy

This entry was posted on Monday, January 28th, 2008 at 9:35 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.