Paying Up

Tis the season to be jolly then comes the new year and the struggle with those debts.  The good part of the new year for some people is the tax refund.  However, the tax refund will not be there for six months.  In the mean time, can you meet those payment?

Well this should not be an issue, after all you got a lot in return.  Debt never goes away regardless of what you do because we all have to live in this world.  The most important issue is how you handle your debt.  Have you over-extended your self?  Did you use cash or credit?  

If you use cash, you have to replenish your stash.  If you use credit, you have to worry about paying the money back with interest.  What remains to be seen is how much of the cut in interest will be passed down to the consumers.  The banks interest rate is less than one percent therefore banks can drop there lending rates a lot to get your business (fifteen or more points).  

Will this happen - probably not?  Consumers are in control of the economy now.  Will the desire to spend money continue or will the consumer say give me better service?  We are now entering into year 2009.  Will this be a good year for you?  You may need to make a budget and stick to it for a while.  Times are about to change and you need to be aware of your habits. Remember, you have a lot of fixed debt (rent, car note, insurance, etc).  

Bob Bee reccommends looking at your varible debts (groceries, electricity, clothing, gas, etc.) and cut back on those expenses. Avoid getting into any new unnecessary debt.  You will find a lot of good deals in the coming year so donot be hasty to rush into every tempting deal you find.  Compare each deal with what your budget can stand. Survive the time and survive your debt next year.     

~The Debt Survivor~