I was raised in poverty during the Great Depression. My father was out of work for two years. At least I had a father. Many men took off to find work and never returned. Hobos continually came to our home asking for work in exchange for a meal. We fed hundreds of such men despite having little ourselves. These men represented our missing husbands and fathers. Too many of my friends had no father in the home.
Debt creates havoc in the home. It is the wedge that spits many families apart. Many folks were already in debt when this recession hit us. Then family members started to lose jobs. New jobs paid less. Some were soon working several jobs while continually going deeper into debt.
During the Great Depression, President Franklin D. Roosevelt guaranteed the mortgages of many home owners. He was highly criticized for doing so, but he saved many thousands of homes. The amazing thing was that when the depression ended with the income flowing in from WWII, the Government ended up making money on the deal. In our present situation, the Government has been ineffective in stopping the flood of foreclosures. The consensus has been that those who got into trouble with too large mortgage debt deserved to get clobbered.
In a way that puts the guilt of the recession on those straining to pay those too high mortgages. Well, Señor, it was the lenders, not the borrowers who clobbered the economy. The bankers knew the mortgages were not reliable assets, so they sold derivatives to dump the problem on investors who thought they were getting a good deal. Well, they got a rotten deal. Their paper profits drifted off with the wind of greed. They were dead. So the banks were back in a fix and you know who took the blow. All of us!
And the Government bailed out the banks instead of the home owners.
I remember when my dad burned our mortgage. He had a low-paying job but it seemed high-paying to us. Things looked up for him after that. I remember when he got his first pay checks. He stocked the house with beans and flour in case things got rough again.
Steps to Getting Out of Debt
1. Stop purchasing things you really don’t need. Stress drives us to smoke, drink and even to drugs. You can’t afford them. Don’t buy them.
2. Don’t eat out. When the kids want to pile into a fast food joint, just tell them, NO! They don’t need the fat that causes diabetes and hearth disease in their young bodies.
3. Don’t buy processed foods, the stuff that comes in a box from the freezer. They are expensive and filled with chemical crud you don’t need.
4. Buy foods at a discount. My grocer will sell me anything by the case and give me a good discount. My wife likes flaky cereal and I sometimes want my Wheaties. I save a buck a box by buying by the case.
5. Don’t go to the store without a handful of coupons. Look for what coupons you need on the Internet. Don’t by some junk food just because you have a coupon. And shop with a list, leave the kids at home, and stick to the list. I save newspaper ads for my wife’s caregiver. She is always looking for deals and coupons.
6. List your bills. Pick out one bill that you could pay off in a short time if you doubled or increased your payments. When you get that bill paid off, then pick another bill and take the money you were paying and put it on this second bill. Keep doing this until you have a manageable situation.
7. Always from the very beginning work with a budget. It may be depressing to look at it but it will bring realty to your situations and by following the budget you will find that you will be able to better handle tough situations. You will be more capable in all you do.
8. Think about earning extra money at home so that you don’t have to spend so much time away from your family. My Internet marketing website might give you some ideas about how to do this. You will have to start small as you learn the ropes.
9. Work education into to your schedule. You can pick a subject and buy used book on the Internet book sites or in your local store. You will be surprised how education can help you get ahead in this world. There are free educational opportunities in your community especially if you want to start a business.
10. Don’t borrow yourself into more debt. Forget borrowing. If you must borrow, hopefully your banker will help you and not one of those high-rate loan companies.
Email me if I can help. email@example.com
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