Are Debt Solutions Possible?

Yes, life is fun! And a fact of life is that many of us get a little carried away and can very quickly find ourselves with a pile of debt.

Everyone has heard the enticing statement, "90 Days Same as Cash." But statistics show that 88% do not pay off the charge in 90 days.

It's common knowledge that the average American is loaded with debt. And as we all know, debt eventually weighs us down physically, emotionally and, of course, financially.

Is there a way out? Yes, there are some simple steps to get started on the right track.

The first thing to do is start paying with cash.

That little plastic card is so easy to pull out and we never feel a twinge of pain using it. The fact is, for most of us, handing over a few hundred dollars in cash is a whole lot harder to do than handing over the credit card. If you are using cash, you might just reconsider and walk out of the store with cash in hand.

Get some help.

There is an abundance of excellent help and courses out there with practical, common sense advice. And, just yesterday I put my money where my mouth is and enrolled in a 13-week course called Financial Peace University by Dave Ramsey. Dave's expert advice comes from someone who has lost everything and knows of what he speaks.

Interestingly enough, the course is outlined in Seven Baby Steps. And do you know what the very first baby step is?

Put $1,000 away in an emergency fund!

And that $1,000 is not to be touched for anything except an unexpected emergency situation that comes up.

So you might say, how in the world can I put $1,000 away when I'm up to my eyeballs in debt already? Well, what this shows is that the very first thing to be dealt with in digging ourselves out of debt is dealing with our emotional peace of mind. When we know there is some money tucked away for an emergency we tend to have less emergencies. But if we do experience one, having a little cushion available helps control the panic.

There's a whole lot more information on how to get out of debt, and in the lessons ahead, that nest egg will have to grow. But for now, that's a start. And a good one.

Recently Forbes Magazine did a survey of the Forbes 400 (the 400 wealthiest people in our nation) asking, "What is the number one key to building wealth?" The answer is stunning. Seventy-five percent of those surveyed said the number one key to building wealth is "Becoming and staying debt free."

Yes, there are very definitely debt solutions for each of us. It might come with some pain, but in taking those definitive steps, with a good dose of discipline mixed in, we are on our way to digging ourselves out. And even in taking those very first baby steps it begins to bring peace of mind, which in turn gives us motivation and incentive to continue to the next step. In fact, in taking this course I'm excited to get on to Lesson #2. And then I'll share more of Dave's great professional advice with you.