Dump Debt Grow Wealth

Who's really to blame for all the massive credit card debt in the country?

Who's really to blame for all the massive credit card debt in the country?  A good question.  Who do you think?

A) The credit card companies? 
B) The banks? 
C) The politicians? 
D) You?
E) All of the above?

If you chose "E," all of the above, you’re right.  And we know that right now you’re thinking “But Randall, I’m not to blame.”  Well, you’re at least partially to blame, and so is just about everyone else.  Everyone and every financial company in America must share some of the blame for where we are right now financially in this country. 

Let’s see if we can determine who’s really to blame and look at each answer individually…

A)  The credit card companies...  These folks have only one real responsibility and that is to their shareholders.  If they don't make money, the shareholders don't invest, the company goes under and lots of people lose millions of dollars in assets.  Hmmm...  So, okay, maybe the credit card companies aren't to blame if they're only doing what they're supposed to be doing, making money for their stockholders, so what if a few more people get into debt? That’s actually a good thing because it means higher profits for the stockholders and the company can grow and thrive.

B) The banks...  Well these guys fit into the same category as the credit card companies and they too are supposed to make money for their shareholders or investors and besides that they MUST make money so they can continue to loan money to all of their customers so the economy can stay robust.  So it looks like these are the good guys, too, doesn’t it?

C)  The Politicians...  Now this is a sneaky bunch and as we were reminded not too long ago, by a U.S. Congressman, it's not a Republican or Democrat issue.  Everyone on Capitol Hill owns part of the credit card debt mess, but do they take the responsibility for the mess?  How much responsibility should they take?  Congress did pass the new Bankruptcy Reform Bill in 2005 which makes it more difficult for people to go bankrupt, which also means that the rest of us don't get hit with higher fees just because someone else went BK, which is good.  Maybe these guys are the good guys, too... 

This isn't looking to good, is it?  Is anyone really to blame for this mess?

D) You...  This is the tough part, because it's never “our fault” when something bad happens is it?  We always have people and companies to blame whenever something goes wrong in our lives.  So maybe you're not to blame for your debt either.  I mean if the big companies are hooking you into so much credit debt that you shouldn't have anyway, by obscuring the facts, and continually selling you the “big credit dream,” it can't be your fault, can it?  So you’re one of the good guys, too.

E)  All of the above...  At the beginning of this introduction I said “E” was the right answer, but now we just don’t know.  I may have made a mistake.  If everyone's a good guy and everyone’s doing what they’re supposed to do to make the system function, then it’s not anyone's fault.  But how can this answer be right? It seems like we need another answer, one that reads...

F) None of the above.  That's it, no one is to blame!  All of the credit card debt just happens by magic! 

I certainly feel better now that we’ve figured this out, do you?  Here all along we thought that the credit card companies and banks were the bad guys because they do everything in their power to trap us into debt.  Come on, they give college students credit cards by the millions and these kids have no jobs, and high expenses. 

That sounds like a great business model, doesn’t it?

I thought the politicians were taking care of us, looking out for us.  That's why we have the OCC (Office of the Comptroller of the Currency) so we, the little people, are protected, right?  It must be true, since there’s an entire bureaucracy set up to protect us.  Maybe the politicians really are there for us.  Who knew?  And you, maybe you’re sitting there still wondering how you got into debt (All you have to do is take a look at your credit card statements, all your spending is right there item by item).

In my case I wondered how I spent so much money and got so far in debt all the way up to the very minute I declared bankruptcy years ago.  Where did all this debt come from?  My way of thinking was, “Certainly I didn't buy anything I didn't need, so I guess it just showed up on my bill.”  Maybe this is happening to you?

Well there you have it.  Debt seems to be no one's fault and no one's responsibility, so I guess we have nothing else to say on the subject...  No that's not true; there is something we need to say…

OUR DEBT IS OUR OWN RESPONSIBILITY

It’s like this… You can’t stand by the sidelines and do nothing about your debt and expect anything good to happen.  If you continue to spend money you don’t have, you will spiral out of control and will dig yourself a hole so deep you won’t be able to crawl back out if it.

If you remain in debt and if we remain a debtor nation we’ll all wind up in the literal poor house and your new 65" hi-def LCD TV won't be worth a pile of manure, because you'll be hungry, in debt, afraid, miserable, and without much of a chance of ever being truly debt free.

I'm asking you... nicely.  Do something now about your debt.  This blog is so easy to follow and so easy to use.  I write it so you can make the maximum impact on your finances in as little time as possible. 

For more free information that can help you get out of debt sooner, go to: www.DumpDebtGrowWealth.com. This is a huge site I have created for you.  Use it.

Together we shall all dump our debt, live life full-on, and be really free.

I am yours in success,
Randall

A bit of Humor for the Debt-Ridden Holiday

As I get ready to go to my retreat for the rest of the week, I thought I would post some cartoons that are in my upcoming book, due for release in 2009. 

Be well this holiday, keep your spending in check and remember that to live free on your terms you must be debt free.

This cartoon is, in my experience, what the credit card companies, even now, want us to do to ourselves.  Beware, they are out to get you any way they can.

And with all the bailout money going around (did you get any yet?) I just thought this was appropriate. 

I am yours in success and I hope you have a great New Year,
Randall

How to Save Money Shopping Today

Here are some quick tips on how you can save money today.

Save Money By Knowing What Month Items Go On Sale
You can save a lot of money by buying items in the month that sellers traditionally reduce prices on that item. Even with today's wacky sales environment the stores still stick to a certain schedule.  Here's a general guideline, by type of item.

• Appliances: Buy in the winter – new models come out in spring
• Electronics: Buy in late December and January
• Furniture: Buy after Labor Day
• School clothes and supplies: Buy in Summer
• Winter clothes: Buy after Christmas
• Cars: Buy near year end, but also at the end of every month when the dealerships are trying to make their quotas
• White sales: Save 15 to 50% on sheets, blankets, comforters, other bedding, towels, etc. after the holidays

Make a grocery list, stick to it. Make a list and keep it with you.  When you have a list, you spend less money.

Don’t shop the salad bar - The grocery store salad bar is convenient, but items on it are typically costly and you can buy the same thing in the regular produce dept.

Clip coupons or find stores that price match.  This is a great way to save money and it works.  I used my store discount card just last week and saved $29 on a $50 grocery bill. Amazing strategy if you use it.

Review store ads Look for the ads at the front of the store before shopping; you might see one or two items you need that are on sale.  Also, check for reward offers while shopping (Instant Coupons, etc.)

Shop high, shop low -  Most major name brands are placed at eye level. Store brands are often (but not always) cheaper than popular brands and are placed high on the shelf, or low on the shelf.  Most store brand do cost less than the national brands.  Here’s a tip:  Try changing one of your national brand grocery items to a store brand once and see how you like it.  If you like it, keep the lower priced store brand.  Do this at least every week and within a few weeks, you will be saving a lot of money.

Use coupons: Strategic use of coupons can save you big, especially if you have supermarkets that double them. In most cities one or more chains do the “double dance” to get you in the doors.

Check out the dollar stores:  The 99 cent or dollar stores now carry food, and other merchandise that is of higher quality than the junk they used to be known for.  Name brands, and fresh produce top the list.

Check out the closeout stores: These are the stores that sell the merchandise that did not make it to the major department stores and are at the end of the season, or are close outs.  Some stores in this category are  TJ Max, Marshalls, and Stein Mart.  I bought a $4000 set of cookware from Marshall’s for $500. I’ve had the set for years and it’s been great.  The deals are there if you look for them.

There you have a few ways to start saving money so you can dump your debt and live life on your tersm.  I am yours in success,
Randall