Credit Guru

Financial problems aren’t always the result of poor money management. Sometimes situations beyond our control, such as divorce, death of a spouse, health problems, or a change in household income can lead to financial hardship. Regardless of the cause, financial worries can impact both your work and your family life.

At the time of this writing, Americans are enjoying a higher standard of living than ever before. So many things are available to us, employment is very high, and salaries provide us the opportunity to enjoy this good life. Unfortunately, as a society we are also experiencing more debt and a greater number of personal bankruptcies. Are we really living the “good life” when we constantly worry about how we are going to pay for it later?

Data released in October 2000 reports $1.485 trillion of consumer debt outstanding. Consumer credit grew at an annual rate near 11 percent in August, up from a 7 1/2 percent pace in July. The pickup in August largely reflected faster growth in revolving credit. For more information, see federalreserve.gov.

Ernest Hemingway said, “Bankruptcy happens in two stages: gradually and then suddenly.” Stay aware of how you are using your money and your credit cards. If you balance your checkbook every month and write down where you are as far as your debt payments are concerned, you can steer clear of disaster.

How to Know When You Need Help

Many times we don’t see the signs of a financial crisis until it’s too late. But financial crisis doesn’t occur overnight. There are usually warning signs that indicate things may be getting out of control. For example, answer the following questions to get an idea of where you are in needing help with debt, if you do.

Yes/No Do you really know how much debt you have?

Yes/No Are you afraid to bring up the subject of money to your spouse and risk another argument?

Yes/No Are you worried that your employer, friends, and family might find out how much financial trouble you are in?

Yes/No Do you avoid opening the mail because you know what’s in there, and you just don’t want to deal with it?

Yes/No Do you let the phone go to voice mail so you don’t have to talk to creditors?

Yes/No Are your outstanding debts affecting your self-esteem?

Yes/No Is the pressure of your outstanding debts affecting your work?

Yes/No Do you borrow money without caring about the interest rate?

If you answered yes to at least three of these questions, it is probably time to get some professional help. There are many sources for you to use, from one-on-one counseling to self-help books to online interactives.