Personal Financial Management

There is a widespread concern about rising levels of debt. Debt can become disastrous for those who live alone or those families who are already having problems with supporting their family. The people who might be struck by debt, they might have trouble recovering. Debt can cause Americans to lose their homes and stability they need to feed, and shelter their families. Although debt comes upon us Americans quickly, people can see debt as terrible thing to be stuck with. It has many disadvantages that can devastate to people.

Today many people blame their credit card debt on the economy. With their being so little employment with very little income; we are forced to live under our means. Credit is usually misused and accumulates large amounts of debt. Many people use credit cards for daily expenses or to buy their wants rather their needs. Often times, credit cards are used to pay rent, utilities and other daily expenses due to people living off of paycheck to paycheck and do not make enough money to pay their monthly bills to buy necessities. Some people may use credit cards to keep up their material social statuses amongst their peers. Other people have some sort of social influences; however, these people do not need to rely on credit to live, it is just to impress friends. Credit card companies reel college students with applications in the mail daily and advertisements are causing them financial burdens.

What would you do if you had $15,000? Perhaps you donate money to charity, or perhaps buy a new car? Maybe you could finally get that watch or purse that you’ve always wanted. The issue is that many people thought they had this much money. Unfortunately, they paid with credit and are now paying 18% extra on their purchases; in some cases, it’s even as high as 26%. That equates to paying roughly $18,000 dollars for something that only cost $15,000. Many Americans are regrettably faced with these bills today, but there is hope. There are people out there who want to get us out of debt, and back on our feet. This essay will look at two of those people, Dave Ramsey and Suze Orman. Of course, you will have to decide which will work best for you. Hopefully this will help you find your way to being debt free.

We are enticed by advertisements on how easy it is to get credit and buy on time” (Ashton 4). We are often counseled by our church leaders to avoid unnecessary debt and if we are in debt to get out of it as soon as possible. In the previous Pathway course, Life Skills, I learned how binding debt, keeping us from fulfilling our family and spiritual obligations. Dave Ramsey said, “If you are living in the bondage of debt, you’re not living" (Ramsey 51).

The debt might be a contributor or it may not be. In August, 2014 seventy-two percent of Americans feel financially stressed (apa). The wealthy suffer from financial stress as well as the poor. Financial stress causes health risks such as ulcers, migraines, and sleep disturbances to many other disorders that can affect a person’s daily life (everydayhealth). The stress that is caused when spending too much money or wasting money on pointless items can be tremendous money. Even if the wealthy do live a luxurious lifestyle, it soon will lead to bad side effects. When financial stress occurs, a wealthy person assumes that if paying back whatever it is that is needed to be paid back, the struggle will be fixed. Many wealthy people do not begin a realistic budget to help monitor their spending, which will help lower stress levels (everydayhealth). If people are too busy buying or spending money on expensive items on a whim and finally see the all the bills afterwards will lead to financial stress. Not everyone will experience this because they know how to control themselves. Other people have the leisure to not worry about spending too much on the latest item. They simply do not care about what happens afterwards. Everything will slowly build up and create health disorders like stress, depression, or anxiety. The wealthy may not think or have a second thought about how

Living in debt has become the norm for most U.S citizens, with nearly 80% of the population in some kind of financial dilemma. Even the national government is trillions of dollars in debt, and the main cause is spending money we don't have. If everyone would stop using credit cards, taking out huge loans, and buying houses that they really can't afford, the economy might slowly regenerate. Many people don't understand how fast debt can build up and how much interest rates can increase that debt. Yes, life would be a lot more difficult for many people if they could only use money they actually have instead of paying it back later and adding on debt, but sometimes change is needed. No matter how difficult this change may be to implement, it may

My own financial health resonates well with the above quote from Daly and Farley, not because I’ve thought about money, but because I know nothing about it. As a young student still breaking ties from home, I have to navigate the intricate world credit, lease contracts, financial aid, and investments seemingly to no avail. In his chapter titled “Enough Debt,” Dietz alludes to this complex world that is the American financial system that I and every other American are currently dealing with. With any complex system, there are misconceptions tied to it that can provide a simpler understanding to those analyzing it. Dietz provides three of the most prevalent misconceptions, how their true function actually debunks them, and then systemic changes

In the 1800’s I believe it was nearly impossible for people to spend more than they financial could because loans were not as easily accessible. In this modern age a common form of a loan that allows almost anyone to spend beyond their financial capabilities is a credit card. Credit cards are pieces of plastic that allow you to buy products and services with the money of the credit card company. However, this money isn’t given to you for free. All the money you spend must be paid back to the credit card company at the end of each month. This is where a potential problem could be created. If people spend more money than they can pay back they acquire debt. The acquired debt then accrues interest when you don’t pay what you owe. This causes the debtor to generate more debt every time a payment is unpaid.

Responding to Debt - Money is also intimately linked with our inner lives. Money helps shape the contours of our day-to-day lives. It dictates where and how we live, what and how much we buy and, to some extent, our position in the social order. Once someone gets into debt, once there, being in debt can trigger unsettling emotional responses — especially if the debts are perceived as unmanageable or overwhelming. It's rare for someone to never have money problems. Trouble happens: jobs disappear, marriages fail, people get sick, homes lose their value and bills pile up. It goes without saying that making money, spending money and thinking about money take up a substantial portion of our lives. Personal debt is not bias, no one is immune. One day we find ourselves in the middle of a financial

Debt is all around us every day of our lives, whether it is out debt or our family members, it has been said that “It is the American way.” You get married; debt. You buy a house; debt. You have children; debt. You rear those children and send them to college; debt. You spend your lifetime accumulating debt just to have the financial aspect of life stress you out to the point of no return. Is this truly the American way? I do not believe it has to be, but once a person gets so deep in debt it is hard to recover. To overcome those habits that landed you in the hole is even more difficult.

Instead of living within their means, on a budget, or going without, most people apply for loans or use credit cards to obtain the things that they cannot afford, rather than saving enough money to buy whatever it is that they want. Unfortunately, many people who have chosen to live this way have ended up in financial ruin, and some have even had to file for bankruptcy and request government assistance. Surely, this is what Emerson meant when he said, "A man in debt is so far a slave." After all, if a person is in debt, he owes something to someone and must work to repay that debt, no matter how long it takes and will not have financial freedom until he has repaid all of his debt. Clearly, society as a whole would benefit tremendously by learning to exercise some restraint when it comes to its finances and free themselves from this

One big reason that credit cards are the biggest influence of debt is that they do not require you to have the money up front. When you don’t have the money for something but you buy it anyway thinking that you will have earned enough to pay it back

My close friend Mark was one who always had a knack for spending even before his salary comes in. And this was a habit that eventually brought his financial ruin, something that almost ruined his life until he discovered consolidated credit counseling service. Just like so many other citizens out there today, Mark's tendencies to spend a lot more than what he could afford left him deeply in debt complications, especially through his multiple credit cards. Once he breached the credit limits of his credit cards and was unable to obtain any more new cards due to his precarious financial position, only then did he stop and think of how to eliminate his debts. Fortunately it was not too late. As bad as his credit report was, he still had an opportunity to improve on it and eliminate his debts. After evaluating numerous debt settlement and elimination solutions, Mark decided to proceed with the tried-and-tested consolidated credit counseling service. Today Mark has managed to control his spending habits, and is on his way towards a debt-free future within the next three years once all his debts have been eliminated. All his credit card accounts have been consolidated under a single debt management plan, and are slowly being paid off on a monthly basis.

Bad debt management is at an all time high. More people are having more financial problems than ever before. Bankruptcy is at an all time high. Financial stress is tearing families apart.

There’s nothing like debt to drown your spirits, but there’s also nothing like the idea of actually one day being debt free to give you the strength to make a change.