Your in debt right?  You want to get out of debt right?  Of course you do, who wants to live a life in debt.

If you are tired of dealing with the stress of living paycheck to paycheck, tired of dealing with creditors, and/or sick and tired of feeling like your debt situation is hopeless then  I have good news!

I am going to share with you a book written by Scott Stephen.  In it he shares almost everything I coach, teach and mentor when I provide one-on-one coaching.

So why would I direct you to an ebook that someone else wrote as opposed trying to sell my own coaching services?  Simple, I know not everyone is willing or able to invest in my services and yet so many people need some form of help digging out of debt.  This ebook costs less than a personal one-hour call with me and is filled with as much information that I provided in a full three month coaching engagement.

As you will read on his site, Ultimate Debt Guide, you will see that this,  proven to work course, has been featured in such publications as the Wall Street Journal, USA Today, and more.

This isn’t just another ebook that contains a bunch of worthless information.  It is a get out of debt course, with proven principles.  The information is priceless, and works!

Please read all the details and testimonies from those who have worked the course with success.  Don’t let the “sales pitch” style scare you off, this is legit.  You can find out all you need to by clicking this link Ultimate Debt Guide by Scott  Stephen.  You have nothing to loose, there is a 100% money back guarantee, if you don’t think this course can help you get out of debt, return it and get your money back.   So if you don’t order it, it is like saying you want to stay in debt.  Do you?

“I’m Broke….But my kids are happy.”

This is what the lady in front on me at Kmart said yesterday when we were inline as she was unloading a cart full of toys.  She went on to say she had two kids and their birthday’s were coming up. Her posture confirmed her words, she seemed defeated….broke. She seemed guilty knowing she couldn’t afford all that she was buying by the way she was “justifying” her actions by telling complete strangers “but my kids are happy.”

The toys were for kids in the age range of three to five, and I have to admit I felt sad for her as she paid with a credit card. It was as if she was using her last bit of credit limit to portray to her kids “all is okay” and here is more stuff to prove it.

So much ran through my mind, as I watched her, I wanted to reach out and offer advice on how to not be broke, how to stop the cycle of paying with money she didn’t have. I wanted so badly to show her there was a way out from under all that stress, but of course the situation and timing was just not right…she was through the line and on her way.

How many times have you had that same thought process of “I’m broke” but feel like you have to keep paying out money you don’t have to keep someone happy?

I once knew a man who was broke, he was divorced and had a son. He gave his son anything and everything. Video games, two new cars, all kinds of “stuff” which kept the father broke and the son lacking in what he really needed….quality time with his Dad.

So often I talk to people who are in debt, who justify staying in debt because they “have” to buy more “stuff” for someone. Not realizing, that many times the one thing our loved ones want and need, it quality time with us. Quality time that is free to give, but many times the hardest to give.

Why is quality time so hard to freely give to our loved ones? Why is it so much easier to go to the store, buy some stuff,  hand it over with a smile and be on our way while our loved one plays with their new stuff?

Personally, I think it is because we have been to pre-occupied with ourselves. We, as a society, seem to have become desensitized to emotional intimacy with family and loved ones. We have become focused on anything that we can that takes us away from talking to one another, to learning about each other. We have become afraid of listening if that listening involves anything but “happy thoughts.” So what do we do? We focus on stuff. Many times that stuff keeps us further and further away from building deep bonds with people. Video games, TV’s, internet, movie tickets, toys and the like.

All this stuff, keeps us in debt as well as keeps us from knowing those around us. We feel guilt for buying (because we can’t afford it) and we feel guilt from not buying, because we don’t really want to give what is needed that is personal time with others.

Getting out of debt has more benefits than just not owing someone else money, it provides you the ability to give of yourself buy not buying stuff. It opens up the possibility of becoming more creative of how to give of yourself, rather than spending money.

Giving of yourself is far more difficult than spending money, it is also far more rewarding, both in the short term and the long term.

Think about it…take the risk – give a part of you to someone rather than buying something.

Re-posted from March 2008

So a friend or even a relative has come to you explaining how they found this great car.  They tell you it has low mileage, ice cold air, runs smooth.  It has new tires, and for a three year old car the price is fantastic.

They go on and on about the car, how it is just what they were looking for.  They ask if you will come take a look at the car, take it for a test drive so you can give them your honest opinion about the great vehicle.

You are flattered that they value your opinion and are glad to take them up on the offer to help.  You look at the car and even agree it is in great shape and the price isn’t bad and mention that with a little bit of negotiating they price would be perfect.

Now that they have you agreeing with them about the car they mention that they have the down payment, and remind you about that new job they just got five months ago so making the payments will be not problem.  They finish that statement with a “but.”  Even though they have the down payment, and can make the payments, they don’t qualify for a loan and they ask if you would be willing to co-sign for them.   They give you every assurance that they can make the payments and that you would have nothing to worry about.  Can you help them out and just “give them a signature?”

Now, lets take a look at this.  They have the down payment, and income from a job of five months that will more than cover the monthly payments.  Why would they need a co-signer?  Simple, contrary to the surface indications that they can afford this car, the bank as proof that this person does not make payments on time or maybe not at all.  The bank considers this person too high a risk to lend them money without the guarantee, in the form of a signature, from someone who has a proven track record of making regular on time payments.  That way, when your friend or relative misses a payment or two, or three (and they will, otherwise they wouldn’t need the co-signer) the bank can and will count on you to cover the loan.

This concept of co-signing isn’t a new one.  For thousands of years people have been guaranteeing the loans of others and are then stuck holding the bag (paying off the loan)

It’s stupid to guarantee  someone’s loan. Proverbs 17:18

So if the concept of co-signing or guaranteeing has been something so bad and common that God felt it necessary to put a warning in the Bible about it, why would any one co-sign a loan for anything? After all, we have been warned it is “stupid.”

So since the Bible is what I consider “Basic Instructions Before Leaving Earth” and more importantly, God’s word, I would never co-sign a loan, regardless of amount, for anyone.

When a bank requires a co-signer they are stating “this person can’t manage money can’t be trusted with this money”

Are you mean, unloving or not a good friend if you don’t “help out” by co-signing? Actually you are just the opposite.  You are a person who is not willing to enable your friend or loved one to continue to mis-manage their money as well as someone who is following Biblical guidance.

You are someone who just may be the person who helps your friend or family member begin a new journey in life. You can take this opportunity to sit with them and help them work a budget teach them how to handle their money so pay for a car on their own without the help of anyone else.

Give a man a fish feed him for a day. Teach a man to fish, feed him for a lifetime.

How do you want to help your friend or loved one?

Today a friend of mine talked to me about his debt situation and in the same breath stated he wanted to lease a new car. I won’t mention his name but he is a smart individual, well established family man who makes a good salary, close to six figures.As we continued our conversation, he stated that he wanted to become more aggressive in getting out of debt, that he needed to get a job where he made more money so he could pay more on his debt and eventually become debt free like me.

I made mentioned that he could become debt free now, after all he is making a very good salary, but that he just needed a little bit if spending discipline and sacrifice a little bit now, such as not leasing a new car but keeping the perfectly good car he currently has which will be paid off in three months.

“Why should I make sacrifices, I work hard and deserve nice things for me and my family” he said, then he went on to say “who am I kidding, debt is a normal part of life, you are the one that isn’t normal by not being in debt.” I replied and said, “yep, you’re right, I am not normal when it comes to money, normal is broke!”

My dear friend then said “So your are debt free, you made sacrifices what if you die tomorrow, you wouldn’t be alive to enjoy your efforts” I said ” But I am not died and I am enjoying it now and when I do die, debt free, I will be able to leave something positive behind for my family, instead of something negative like debt, I will die with dignity and be known as and individual of character and responsibility who took care of their business while alive and did not leave a mess behind for my family to handle”

From there the conversation went down hill, he was getting upset at my thought process and I was confused as to why since he was the one that brought up his debt in the first place.

One minute he is telling me he “wants to be debt free” but in the next breath he is all but stating he will never be debt free because it isn’t normal, and what is the point in attempting to be debt-free you may die and not enjoy the efforts. Maybe he needs to read a little bit about having a positive mental attitude because that thought process will keep him in debt for sure.

Sadly, it is this thought process that is causing millions of people to continue to live with debt. They believe that having car payments, credit card payment, second mortgages, etc, is a normal part of life.

Like Dave Ramsey says “Normal is broke.”

Many people are short sited and only thinking of themselves with regard to the debt the carry rather than their family after they die. I would much rather change my family tree for the better now while I am alive, still having the things that I want by paying cash, giving wisely and also leaving something behind that will benefit my family as well as charitable programs rather then being selfish and spending what I don’t have and racking up debt. What does that tell loved ones in a non-verbal way? “When I’m dead I don’t care what you have to deal with or that I didn’t leave you anything to live on.”

I think it is a shame that people view debt as a normal way of life, that stress and working all the time to pay someone else is the way it is suppose to be. Debt is not “normal” it is not even biblical, Romans 13:8 says “Keep out of debt and owe no man anything” and Proverbs 22:7 “The borrower is slave to the lender” It doesn’t get much clearer than that.

Debt is not a badge of honor or a sign of success, it is a symbol of failure and a lack of discipline. It is time to change your view about debt if you are ever going achieve financial freedom and peace for you and your family.

Goal – Dictionary.com defines it as: “the result or achievement toward which effort is directed; aim; end.”

Goal, intention, objective, destination, target, mission. No matter what word you use, it is a point in your future that you aim for success.

We have all set goals, we have successfully achieved many and we have all not met some of the goals we set for ourselves.

Goals are important both professionally and personally as they are a stake in the ground that we (or your employer) set to encourage growth and forward movement.

It has been said that most people believe in setting goals, however only about 3% of us actually set and write down goals for our personal life. There are many reasons for this; fear is very near the top of the list.

Most people who don’t set goals are afraid they will not meet the goals they set. They don’t want to fail. Yet, I think dong “nothing” is worse than trying to do something and missing the mark. It is always better to attempt to improve even if you fail, than stay stagnant as life passes you by.

We have all set goals like “I am going to lose weight” or “I am going to stop smoking” or “I am going to get out of debt.” What ever it is you feel you need to improve, you have probably set a goal about it. Or have you?  Have you really set the goal to the point where it is attainable? It is safe to say, “I am going to be debt free” you haven’t really set a goal; you have just made a statement.

Goal setting is about being specific to what you want to achieve. Draw a line in the sand.

Be honest with yourself, look at your debt and your income, determine your behavior change and commit. Set your goal, write down your goal as well as a plan to achieve it. For example your goal should read something like: “I will pay off $18,000 by June 1, 2008. I will do this by using the money that I saved by not eating out and putting those dollars on credit card debt” Be specific. How much will you pay off, by what date, and how.

Write your goal down on 3×5 cards and place them in multiple places around your environment. On the refrigerator, bathroom mirror, visor in the car, edge of your computer screen. When you see it, read it out loud as well as to yourself, positively reinforce your goal to yourself, remember PMA – Positive Mental Attitude.

Once you have your goal set, tell someone close to you. Now this is very important.  When I say someone close, I don’t mean your spouse, after all you two are already in it together. Tell someone that is close to you, friend, parent someone who is not directly related to the debt, who you trust. By telling someone else what that goal is, you are placing accountability on yourself. You are making that goal real. It turns a general statement into something you must take action on and be accountable to yourself as well as admitting to someone else the status of your goal.

Set a goal to pay of a specific amount of debt by a certain date. Living with the stress and fear of debt is far more risky than setting a goal to begin your journey down the path toward financial freedom.

In 1993 I was $48,000 in debt. I lived in an apartment, paid monthly car payment to the bank, and after expenses, rent, electric, phone, insurance; the rest went to paying on credit cards. I had no savings, and to say I was living paycheck to paycheck was an under statement because at times I was actually paying one credit card with another card. You can imagine, this scenario didn’t last long.

I was so much in denial about my financial situation; I actually thought that since I was making a pretty good salary, I was able to buy a house. Needless to say, the bank set me straight on that thought process pretty quick.

That is when I realized I had to get out of debt if I was going to be a successful individual in life. I had to “grow up” and begin to live within my means. But how?

Sure, it seemed easy to say, spend less than you make, or live below your means, but how? I didn’t have a financial coach, or even a money mentor, which I really needed. I had to figure it out on my own.

I wrote down what my bills were and how much I made every month…is was rough, no where near the process that I described in “Money Management aka Cash Flow” I realized I had to change my spending habits.

Once I told myself “Kim the way you have been spending money isn’t working, let’s try something different” the change began to happen. After all, to continue to do the same thing over and over again expecting a different result is actually the definition of “insanity” and I am very sane and able to improve.

So I changed how I was handling money. I stopped eating out (which I was doing every day lunch and dinner.) I stopped going out on the weekends. If I needed to get out, I would go to a store with a friend and walk around with her as she shopped. Sometimes, I even put stuff in a cart, and then walked back around putting it all back on the shelves. It got me out of the apartment, I got to socialize, but I didn’t have to spend money. I changed my thought process and spending habits. I had a goal to get out of debt so I could buy a house. Guess what? It worked!

Two in half years later I had paid down that $48,000 debt to $18,000 and I was approved to purchase a house.

Now, did I do it right? Well, it was right because I paid a lot of debt in a small amount of time, but was it the best way? No. I made mistakes. I didn’t put any money away for savings so every time the bank owned car broke down, I had to charge the repairs. Not good.

Yes, I said charge repairs which meant I didn’t cut up those credit cards, mistake number two. I did close many of the accounts but not all of them.

I didn’t know how to properly pay off credit card debt; I just paid it best I could, focusing on the highest interest rate first. Not necessarily wrong, but it sure didn’t give me any short term “feel goods” by having paid off a smaller card first and seeing a success.

So what are the steps that I would now recommend to pay off debt?

1. Work your budget or cash flow plan every month.

2. Stop using all credit, no new charges, no new loans

3. Pay yourself first. Put at least $1000 in the bank to cover emergencies, and keep that amount there. If there is an emergency, then you have to replenish that amount so you maintain $1000 in the bank. Even if it means not paying a credit card or two for a month two – pay yourself first.

4. Change your spending habits, cut back on eating out, entertainment, and magazine subscriptions. Think frugal. Use coupons, buy generic. It all adds up. Put the extra you save by cutting back on debt.

5. Pay your smallest debts first. Put as much on your smallest debt as possible while paying minimums on the rest. That way when you pay off a small debt, it is an accomplishment, and you can see you are progressing forward.

6. Think of ways to bring in more income…we will touch of some of those areas in later blogs.

Stay focused, the process is not easy to start, but the payoff in the end is well worth it.

You know when you go to the mailbox you are going to find at least one of these two things, a bill and/or a new offer for credit. Today I am going to talk about some good reasons why you would want to stop receiving new credit offers.

Now we all know what credit means….that someone is offering you their money for you to use and for this benefit, you will be paying them, the lender, back the original amount of their money, plus some of your own money called interest, which could be 22% or even higher….ouch!

Oh I know these offers can be very tempting by stating 0% interest or no annual fee…..trust me, they wouldn’t be making the offer if they weren’t pretty sure they were going to make a profit from that “0%” that they are tempting you with. Chances are pretty good you will miss a payment, or they will change a due date by a day or two so your payment arrives late, and once that happens…bam, the 0% is gone and the 22% is your new interest rate because you failed to meet their nearly impossible terms for the 0% rate.

If you think these offers are coming more often now than in the past, you would be correct. Consumer Credit Counseling Services says that “financial institutions are soliciting people who have good credit right now” more than ever, why, because they need the money, and people with good credit are their best best, they figure you will pay, but still make a mistake not to meet the original terms of the deal.

Yes, it is flattering to think that you are considered to be an individual with good credit by receiving these offers, but don’t buy into it. You want to keep that good credit, not by getting more credit cards, or additional loans and building more debt, but by doing just the opposite. Paying with cash. Yes, you heard me, if you have to buy something on credit, or with a loan (besides a house) that means you are admitting, “I can’t afford this, so I am going to have someone else front me the money” and then inside you tell yourself, “oh I can pay this off with my next bonus check” which you have already allocated to last weeks credit purchase that you forgot about. The cycle continues until one day you have more debt than you have income.

The first thing to do when you receive an offer for new credit is to shred it, with a cross cut shredder. Don’t just throw the offer away in the trash…that is the worst thing you could do (well besides filling it out and applying for the credit) Shred it so no one else could gain access to it and take your identity, but that is another topic we will talk about that in Monday’s blog.

The second most important thing you want to do is opt out of all these credit/loan offers. Remember, your goal in life is to pay cash and live debt free, so there is no reason to apply for credit as that will only make you poor and someone else rich with your money.

To opt out of these offer go to https://www.optoutprescreen.com or call 1–888-567-8688. Make sure you choose the option to opt out for life. Credit is not your friend when it comes to wealth building….Cash is.