How to Overcome Debt

Debt the word itself sounds scary and is the reason to give anxiety to a lot of people. Taking loans is easier but returning them is big task in itself, you have to schedule out your budget and gather every extra penny to get the burden off your shoulders. It is a matter of your character and can’t be taken lightly, you lender will be in front of you when you are scheduled to pay and hence, no matter how bad the situations are one has to pay back the payment and clear the balances, where you can get payday advance loans to cover these debts there are few more steps which you can follow:

  1. BUDGET!

First and foremost what you have to do is to create a proper budget of all your expenses, regulate them and reduce all extra expenses in order to save a proper amount. It is time to stick to the budget plan and save every penny you have. A proper budget plan will give you an idea of what expenses to cut and from where you can save. Take an extra job and earn few more to get the burden of debt off your shoulders. Earning extra money by additional hard will only you pay with the freedom.

  1. Urgent Loans!

No, don’t ask money from a friend or anyone else to make yourself indebted again you can go for cash payday advance, this will be paid through your next payment, you can clear your debt and use your next salary to cover up your payday advance loan, this will help you cover your debt problem and will use your next salary to pay your loan. These are also available online as cash loans online. Use these money to get off the large debts first and then use them accordingly.

  1. Prevent yourself from taking more!

This is extremely important, restore yourself, turn yourself away from the all the debts, think about all that you still have to pay and not take any other debt and add in the pile. You should pay the dues of your credit cards at the earliest, start paying in form of cash only to secure yourself from getting burden by debts, avoid repeating the mistakes you did and free yourself from the burden. Set priorities and follow them through cash with less use of credit cards.

  1. Set out Priority.

You should have a clear idea about what is more important and needs to be done, determine the categories holding larger portion of your debts like mortage and student loans, save every extra penny in order to get these debts off your shoulder. For student loan you can even plan out yourself in a way that you can get scholarship or work at a firm which will handle your education. Hence, by differentiating the types of debts you have to pay you will get a clearer picture which will help you in long term.

  1. Invest:

Lastly, when you are doing extra job, setting a budget and saving every extra penny for overcoming the hurdling debt it’s safe and an wise option to invest some of this amount properly by this you will get a good share and that will help you tackle your financial issues.

Use the above steps and try to secure yourself from all the burdening debts in any form.

5 Tips to Build Credit

What is credit?

Credit score is defined as the combination of numbers and data which helps banks or loaner of money determines the reliability of any person. The banks and lending companies set up the credit score with the lowest being 300 and highest being 850, the higher the score is the more companies relies on the person and their capability of returning debt, also the previous credit record is taken under determination.

. Following are the ways you can build up your credit score!

  1. Secure Credit Cards:

Secure credit cards are a better option if you are a beginner and it will also help you set a credit history and score for yourself. For secure credit cards the person should deposit some amount when the card is being issued- you can start soon by applying for cash payday advance, the card is used as safety deposit and if the person will not be able to clear the balance would be taken by the lenders otherwise will be safely returned. Secure credit cards are a momentary step before going for unsecure credit card which is a better option and you don’t have to deposit a safety amount.

  1. Clear the Balances:

Expert says that it’s important to clear the small balances of credit cards you own, this case raises when having multiple credit cards and if each of them have small balances except having a one with all the balances can create issue and lower your score. Hence, it is important to clear up your small balances from all the credit cards and use one or two as a way of spending on all your errands. This will raise up your scores and provide a positive picture, if you don’t have enough amount you can go for payday advance loans as well.

  1. A Co-Signer:

A cosigner is like your partner in the credit card business. This is quite a help and implies the returning of the debt on both the cosigners. In this way you can get the unsecured credit card or loan but it is of high important that the co-signer is aware of the policy of paying the debt if another one is unable to.

  1. Paying Bills actively works as a booster!

Yes! It is an important factor and plays a massive role, where all your payments and credits are recorded; the schedule of paying your bills and that too on time is counted as well and provided a positive image to the companies. Usually people who are determining to go for a big purchase are saving money and hence, slack in paying the bills but you surely don’t want someone calling to your bank if you are late in clearing the bills as that will only low your score, to secure yourself from such embarrassment it is advised to go for cash advance payday loan in order to cover the balances.

  1. Having an authorized users:

This another way to build up your score but for this you have to get a revision of the policies and if they allow the inclusion of authorized user or not. Unlike co-signers authorized users are not compelled of paying the money or debt but can use the card and help in creating a strong credit history and will be recorded. However, the owner of the card can even ask for money from the authorized user.

How to get a Personal Loan

Put the same amount of research towards a personal loan that you would towards any other purchase you make. So it is important that your personal loan suits you and to avoid confusion ask yourself the following ten questions when making obtaining a personal loan.

Maybe you need it for an emergency purchase of other important things.

Firstly outline why you are getting this personal loan and iron out the details such as how much you will need and whether you need a loan or not.

Lenders will question you about how you will use these funds, and you have to answer honestly.

Although mostly the reason for getting a personal loan has little to no bearing on whether or not you get the loans, some lenders restrict how the loans can be used such as Payoff which only gives out personal loans to assist people in clearing credit card debt.

List out the costs you need to cover with your personal loan and restrict the amount you have loaned to that amount.

Do not increase your loan by a further 5000 dollars simply because you want more cash on hand. This may cause your loan to become more expensive and can lead to an increased chance of default.

When you know how much money you require it will be easy for you to choose a lender since most lenders set maximum and minimum limits for a personal loan.

There are companies which offer low loans as well as large loans like Upstart and Avant giving loans as low as 1000 dollars or SoFi which provide loans as big as 100,000 dollars.

When you understand how much you need to get a loan you also need to decide how much of a loan you can repay.

Always remember that the greater the amount of money you have borrowed, the higher the monthly payments will be and also the more will have to be paid as interest.

The following points are how to obtain a personal loan that you can afford.

  • Review budget and the cash you get each month.
  • See how much money you have left at the end of the month after paying off all your bills.
  • Calculate how much you can shift towards your payments on your loans.
  • Search for places where you could lower costs and make space in your budget.
  • Also, evaluate how much you really need a loan as opposed to other financial responsibilities and goals.
  • Weigh your other requirements and expenses against whether or not you need a personal loan and identify which one takes priority.

The personal loan repayment term is the period for which you will be paying your debt. These can range from one year to up to ten years.

If your priority is to keep your spending low, then you should get a loan with a smaller term since loans with smaller terms lead to you paying lesser interest and thus reduce your debt as fast as possible. Loans with shorter terms also have smaller interest rates.

Make sure also to see that your costs per month are affordable. Since the length of your personal loan also affects the amount you will be paying per month you will want to choose a loan term that makes payments affordable.

Taking an example, let’s say you borrow 10,000 dollars with an interest rate of 8% and your loan term is five years. You will end up with a payment of 203 dollars a month.

However, if you repay the 10,000 dollars with 6 percent interest rate, then you will pay 304 dollars a month. While the payments per month are higher the lower interest and the shorter term will save 1,214 dollars in interest costs.

However, before applying for a personal loan first, you must know your credit score. This information will help you decide the best lender at the best interest with credit guidelines that are matched by your credit history.

The following things are what must be remembered with regards to credit score and loans:

  • With a credit score below 580, it is unlikely that you will be unlikely to get a personal loan. So you might need to look into other options like getting a cosigner or getting a secured loan.
  • With a credit score between 580 and 680,e. an average credit score, you must be careful about choosing your lender. In this case, apply for a personal loan for fair credit, and this can increase your chances of being approved.
  • With a credit score of above 680, you have excellent credit, and this will give you the greatest chances of being approved for a personal loan. This will also give you lower interest rates.

Always check the credit score requirements because this will help you know if you qualify and know your requirement from lenders.

A major point of consideration is whether or not you need a co-signer for your application.

A co-signer is a person who applies for the loan with you, and they agree to take responsibility for the loan if you cannot make payments.

Several people apply with co-signers because it increases chances of approval since a cosigner with a better credit can increase chances of approval and get a better interest rate.

However, not all lenders allow co-signers on loan so when applying for a loan choose a lender which allows a co-signer for example, Earnest.

Unsecured loans are the most common personal loans. They are loans which are borrowed all together, collateral is not given, and they are paid in instalments over a long period.

Some other options related to personal loans you should consider are:

  • Secured personal loans which require collateral like auto equity or savings accounts.
  • Fixed-rate loans which keep the interest rate throughout the loan term constant.
  • Variable- rate loans which initially have low rates but the lender does have the option to increase them later on.
  • Peer-to-peer personal loans which are financed by investors and have smaller interest rates of separate requirements for eligibility.

All of these different types of personal loans have different types of advantages and disadvantages, and different lenders offer different types of loans. Before choosing your loans evaluate all the options to make an informed decision.

When searching for a personal loan be sure to compare different interest rates and this will help you save on costs.

Alternatively, with a good credit and other positive aspects of your financial situation like low debt and high income you would get the best interest rates like SoFi which offers its lowest interest rates at 5.19%.

However, even if your credit is not perfect always browse the market, it helps to get rate estimates from lenders and compare them.

Besides interest rates identify the other amounts, you will be paying and compare them to see what is the best deal.

For example, origination fees, which are usually from 1 to 6 percent of the total loan amount. Thus one should be careful in comparing loans since even if a loan has low interest but a high origination rate it is probably not the best.

Along with that lenders usually, remove the origination fees from the loan amount before the funds are disbursed and thus the amount requested should be enough to cover any other costs.

Most importantly choose lenders who will give you good service, make sure to check their reviews by other customers since these tell you how well they treat customers and about their history as a personal loan company.

Reviewers often list their credit history and whether or not they were approved since it will tell you about the type of people these companies would work with.

The following are warning signs that you should watch out for, in order to avoid shady lenders:

  • Lack of credit check loans
  • Several hidden costs and fees
  • Sign-ups which are high pressure

When you are getting a personal loan, it can be very easy for people not to remember how difficult it will be to repay these loans. So it is important to browse all the lenders and options and choose a personal loan after a lot of research. Finding a good deal on your loan is important since you could be involved with that loan company for a very long time.

5 Ways to Eliminate Credit Card Debt

Credit cards are very important and useful tools, especially in some financial situations. They can even provide certain perks like discounts and rewards etc. However, if people depend too much on them, they can get captured in a never ending cycle of debt paying.

However, here are some tips for paying off credit card debt.

If you are avoiding your bills, then stop because this has no positive outcomes. The first step would be to calculate actually how much debt you have amassed. Also, include debt that you do not normally include like student and medical debt. This will provide you with a fuller amount.

Secondly, detail all your bills and be as detailed as possible by adding as much of your expense like groceries, money spent eating out and other expenses for entertainment like tickets for movies etc.

These small purchases can add up very quickly and so it would be better for you to stop spending your money on those items. While spending the money you use eating out on your debt may seem difficult for a time but it will help. Instead of eating out, try to eat leftovers for your dinner last night only for a short time. Also if you are not using your gym membership cancel it and just walk around your neighbourhood for free.

After getting an idea of your expenses and now that you have stopped amassing debt try to get a good option for your repayment. This depends on your circumstances so you can consult a financial expert for the best option. For example, if you are a homeowner you can refinance your mortgage for making your monthly payment smaller to get more cash for putting toward your debt. Bridget McGee with the nickname of Maryland Mortgage Mama is a mortgage loan originator say that that this can save you money in the long run since mortgage interest is deductible towards tax while a credit card cannot.

The second option would be a loan from a credit union and once approved the bank will pay off your debt to the credit card company, and you have to then make payments to your bank. Bank interest is lower compared to a credit card company, and since the interest rates are settled at the time of taking out the loan, this is a better way to pay off debts. However, be careful not to amass debt again.

Alternatively, if you wish to pay off your debt yourself try to pay off the card with the greatest debt and interest first. This is known as the debt snowball by a financial expert named Dave Ramsey. Therefore try to pay the minimum amount on the other cards and put the most money on the card that has given you the most debt. In this way work through each card and eliminate your debt.

While non-profit companies exist for credit consolation, they should be a final resort since it is damaging to your credit score when you use them. These companies try to get you lower rates from the creditor, and you give them monthly payments which they give to the creditors. However, check their ratings online before using them to see their reputation.

McGee states that if someone has too many cards with too much debt it can make them more likely to miss a payment and if a payment is missed you can have your credit score lowered. This leads to several problems such as leading to higher interest rates, cash penalties etc. If you are unable to pay then try to negotiate a later date for payment with your company as well.

While paying off all this debt can seem difficult at first ignoring the problem and hoping it will remove itself will make it work so work on your finances and pay them as soon as possible and your good credit rating will be your reward.

Managing Credit Card Debt

American households have an average of 5,700 dollars of credit card debt and can increase to around 16,000 dollars for households that do not pay their balance per month. However, while it is challenging it is possible to manage it with other financial responsibilities.

The following points will help you manage and hopefully pay off your credit card debt.

Firstly assess your debts and how it would be to manage them. Despite sounding easy, this can even prove to be a challenge to financial advisors.

In place of that, they make more general statements. A New York attorney by the name of Matthew Zimmelman states that if in six months you are unable to pay back your debts without liquidating an investment then you have excessive debt. Kelsa Dickey stated that if too much money is put towards payments, then the debt is too much. Kelsa is a budget coach with Fiscal Fitness, and she goes on to say that the debt is too much if it also makes you spend money that was saved for a vacation or forces leaving a job you hate.

Another major step to manage debt is also to make a budget. A 7 Pillars Financial Coach, Christine Luken states that a budget helps keep people on track. Kelsi Dickey states that people need to organise themselves to organise their debt and to see how much money they have each month for their debt.

Financial Advisors like Christine Luken advise people to avoid certain behaviour. Like not using credit cards and switch to other payment methods for example debit cards. Alternatively Kelsa Dickey advises against removing all money from your checking account to pay off debt because later on other expenses could come up and that it is better to plan ahead.

While consolidation programs of debt may seem like a good option but most financial experts do not advise using them and point out several problems with using them. Zimmelman stated that it could be difficult for paying the debt off due to programs like these taking away fees from the top. Also, they make you vulnerable to creditors who can take you to court.

Also, these programs do not always counter the psychological issues that lead to the credit card debt. Kelsa Dickey stated that debt is the symptom of a larger problem and that the main reason for credit card debt is a failure to manage money.

After paying off the debt you have to try to avoid getting large debts again. According to Christine Luken, it is a good strategy to limit the cars you carry. Specifically one with a smaller limit or a secured card. These options provide the benefit that in case of a financial crisis the bank can use the savings account to pay off the debt.

Michael Zimmelman also suggests psychologically enforcing a healthy mindset such as by taking pride in the fact that you paid off your debt. Kelsa Dickey suggests to plan, and the key to eliminating your credit card debt is managing your debt.

Loans for Grad School

In America around 40 percent of all loan debt of students is loans taken out for professional and graduate degrees, despite the graduate students being outnumbered by undergrads by around 5 to 1. Loans are not the only way to finance an education.

The major question is how to get money to finance your graduate school education. Read further to get to know about all the options that you have besides loans.

When trying to evaluate your sources of finance for graduate school there is an order of priority. List them accordingly from least to most expensive so you can customize your attempts at a cheap source of finance before trying other things.

If you want to work in a particular field fellowships are very good ways to obtain free money for an education. Fellowships have merit based requirements and they can pay almost every expense for your educations including tuition like living expenses, food etc.

Fellowships can be obtained from a lot of places such as from exterior organizations, you can also apply for them through your own school for what are called institutional fellowships, and even by federal funding.

Fellowships not only help to keep costs of education low but also assist you in obtaining skills important for your field and also add things to your resume. Fellowships may make you do research or teaching that is similar to work you may want to do for a living one day. Fellowships are both financial and and educational so always research the fellowships you can apply for.

This can be done by signing up for websites such as ProFellow, which provide tips for applications and also allow you to browse a database of fellowships, or you could use the fellowships database maintained by Cornell University.

Another way to obtain finance for your graduate education is by obtaining a scholarship. This is a very good option since the money does not have to be returned and there are many ways to obtain scholarships.

Scholarships can be found with a number of eligibility criteria like merit, by field, location and sometimes even by heritage. Be thorough in your search for a scholarship.

Online portals like Fast Web, Scholarships.com etc. will help you in obtaining scholarships specifically as a graduate student.

After evaluating your options for assistantship, fellowship etc. the next thing is searching for free aid and a good way to get free aid is aid from your state.

Research whether your state provides financial aid for graduate students by asking a state grant agency or using the map created by the Department of Education.

If your educational institution is in another state then research that state which sometimes hold grants for students who study and then work for their state.

Apart from state sponsored financial aid schools offer financial assistance as well which is not very uncommon.

Stats show that school provide financial assistance which is nearly as much as what the government provides. To find out whether your school provides financial aid contact the financial aid office of your institution.

Also upon finding financial aid you could apply for fill in and submit your application as soon as possible to make sure you do not lose this opportunity for free schooling.

Students often express surprise upon learning that non-profit organizations actually provide financial assistance. Students must search for a non-profit that provides assistance specifically for students like them relating to a number of factors such as income, heritage etc.

While this takes a bit more research online websites such as Questbridge can help, specifically helping students with low income obtain education.

Finding work is another way to finance your studies this can be done through federal programs which provide jobs to students. These programs are highly competitive and work on a first come first served basis and quickly fill out an application for your federal student aid which can be done very early , in fact in the fall of the previous year.

The Office of Federal Student Aid states that the amount you get depends on need, the funds the school has etc. Students can be paid their total money immediately or also make it so that the money immediately goes to paying the tuition and other costs.

The work you can do depends on the program you are studying in and in some cases you may even work for companies that have an agreement with the university you are in and it works in an industry that your degree is related to.

Graduate students sometimes even seek out assistantships for financing their education; however these positions include teacher or research assistants and can be a lot of work.

Assistantships on average require around 20 hours of work on average and include work like teaching students, preparing labs etc. This work can also stack up a lot when you have a lot of school work as well.

The assistantship programs are common but highly competitive so apply for one as soon as possible in order to make sure you get the position.

Andrea Imafidon who is now a blogger and entrepreneur was a graduate assistant and used that position to finance her degree without getting too much debt.

Her school financial aid office helped her to get a graduate assistant position working 20 hours a week which helped her to avoid debt and earn money as a student.

Andrea said the position got her enough money for travelling, living and saving. She states it was one of the highest paying positions in her school. It also covered her tuition and housing among other expenses.

When all other options are not viable federal loans are also a method of financing your education. Just remember to fill your application and submit it early.

The application can also allow to access to things like work opportunities etc. but the financial aid application is the only way to get federal aid student loans. This is important because these loans have repayment flexibility which can allow you to get an income driven payment plan which makes it easier to repay the loans.

The Federal Student Aid also provides you with a list of options for graduate students which will be given to you when the application is submitted by you. There are a number of options available like the Federal Perkins Loan, Federal Pell Grant among others.

Always know your options since it is always very helpful for you and submitting just one financial aid application can help you to view all the grants and loans that you would be eligible for.

However, when offered multiple sources of finance get any grants first before loans since grants do not need to be return. This can help reduce the amount of debt you amass.

If the amount you received was not enough for you an appeal can be made to be more funds.

If no other options are available to you then private student loans can be taken out to pay for your graduate school.

Deborah Sweeney the CEO of MyCoporation stated that during her education she was not afraid of taking loans for legitimate reasons like education, business investments or home purchase. In exchange she worked hard to make sure she paid them off.

Maintaining this balance is what helped Sweeney stay above her debt and work on other objectives.

She said that you should invest in yourself when it is required and then work hard to make sure that you can pay it off without consequences and this has worked well for her.

When you cannot get funding for a small cost which is not being covered by another method private student loans are a great tool. However, they could be difficult to repay because unlike federal loans they do not provide the facility of forgiveness or income driven payment plans.

Their interest rates can also be higher and this can cost more money overall and this can lead to amassing a lot of debt. FinAid listed private loan lenders and according to that list interest rates start from 2% till 12%.

Firstly evaluate how viable it is to use private student loans , weight the pros and cons then make a decision.

Graduate school is the dream of several people and a lot of them want to advance their career or even through a love for learning. However, in some cases the dream is not free even when you are financed by grants etc.

Unless you attend school part time then the time in school could be time that you cannot work and thus you could lose out on salary.

However, depending on the qualification you gain and it could open up other opportunities for your career. Thus always evaluate the pros and cons of any decision you make.

DeVry Lawsuits

President Trump and his administration plan to change the head of the fraud investigation sector of the Department of Education to a former dean of a for-profit college.

The former dean in question is Julian Schmoke junior who used to work at DeVry University and currently works as a community college administrator. A Politico report states that he will head the sector of Student Aid Enforcement.

Schmoke is currently the director of campus operations at West Georgia Technical College and formerly worked at DeVry University, a for-profit institution, where he worked as the associate program dean for the Engineering and Info Sciences section from 2008 till 2012.

Reportedly the Trumo administration has been asked to run the Unit of Student Aid Enforcement created by Obama while he was in office and which investigates illegal actions by education institutions.

Allegedly, Politico obtained an email according to which the head of the Federal office of student aid, Wayne Johnson made several appointments which included Schmoke.

In an email, Johnson apparently quoted Schmoke’s experience in education related services like education leadership, and how to implement and develop important aspects of the education sector like education policy, program evaluation etc.

However, Schmoke’s appointment has received a much more mixed response elsewhere. Jay Fleischman has raised the concern of someone who formerly worked for a for-profit college being appointed to such a position being a possible conflict of interest. Fleischman, who is a lawyer working specifically in student loans, states that institutions Schmoke formerly worked for, settled cases of fraudulent acts, the same acts that Schmoke will now investigate.

The Unit of Student Aid Enforcement was formed in 2016 by Obama while in office. It was formed to investigate illegal acts by education institutions.

These acts mainly include working towards the prevention of acts such as inflating fees and wrongly exaggerating job opportunities, which target students who are made to pay more with the promise of a more comfortable life.

The Unit consists of four sectors which focus separately on investigations, to defend borrowers of loans, actions of the administration, and cooperation with campus security and disclosing crimes.

In a public release about information about the unit, Education Secretary John King stated that Americans deserve to be rewarded with better lives and educations as a result of their investment of time, effort and money. Going further to say that failing to do that would lead to consequences for everyone and stating that education institutions who practice dishonesty will be punished accordingly.

The FTC (Federal Trade Commission) was paid 100 million dollars by DeVry University in 2016 among several other cases DeVry settled like an over 2 million dollar settlement with the state of New York in 2017 and a nearly 500,000 dollar settled with Massachusetts.

Much of the money will be used for returning to students and forgiving the loans of former students. The settlements happened as a result of cases brought to court due to deceptive advertisements.

The FTC court case states that DeVry lied to graduates about the field they were working in giving several examples to support their case. The case with Massachusetts started that DeVry lied about job rates of certain programs, which could be as low as 52% a half year after graduating and not as high as 90% like DeVry claimed.

As a result of these cases, DeVry attempted to switch its branding to Adtalem Ed. Inc.

However, DeVry is just one college which has recently been accused of illegal practices. Obama and his administration brought litigation against several for-profit colleges. This resulted in some of the worst accused being denied further financial aid from the government. Most people wish to have loans forgiven as a result of the litigation.

Fleischman has said that since some of these actions supposedly happened while he was working at DeVry, it is sad that Schmoke might be leading the government organisation that is going to be investigations others like DeVry. He will also be majorly responsible for the over 1800 student complaints made against DeVry by former students.

Doubt has been cast over whether or not Schmoke is the best person for the job taking into account his past working for an institution like DeVry.

1.3 Trillion American Debt

This summer Americans have amassed the highest amount of credit debt in U.S. history with over 1 trillion dollars of debt in June according to the Federal Reserve nearly equal to the GDP of Russia. Out of the total debt, 1 trillion dollars was credit card debt. Before this, the last record for credit card debt was in April 2008.

These stats should be an eye opener for Americans and even if you believe you have a good hold on your credit card debt the situation could change very easily. One frequent mistake I view it people requesting returns on the interest they pay on their debt.

They believe investments could provide them with the money they pay on their cards but at most, it could help them break even. Since investments don’t function like that, you can never find one that will provide a return higher than the interest on your credit card since that interest is too high.

In reality, credit cards are never manageable if you are paying interest on balance you haven’t paid then you already have a problem. The average balance that remains unpaid is around 9,600 dollars with 1,254 dollars in interest per year. Since interest rates only increase banks unload the rate increase onto consumers.

Credit cards are not always bad though since in some cases they can be helpful to manage finances. They are more convenient than carrying around cash, and many credit card companies offer perks and bonuses if a certain amount of money is used in transactions from that card. While these rewards are good for those who can complete their payment, it can lead to certain people entering a debt cycle.

The major problem is Americans using the money they do not have, and often debt is hidden behind other products which pretend to make the debtor’s financial situation better. The best way is to pay off any debt you have at the end of your month and if you find you cannot pay it off then cut back on expenses.

A better way of looking at spending less would be that what you don’t spend at present is available for you in the future. A proficient investor named Warren Buffett compared this with the fact that someone can only sit in the shade if someone else planted a tree a long time before. The savings made through less spending are those planted trees.

Americans need to start accepting credit card debt as the major problem it is. They also need to reduce spending to bring expenses under control. However, do not think of them as sacrifices. A credit card makes people impulsively buy something they may not be able to afford; we need to accept responsibility for this huge debt since it did not amass overnight. Since it takes time amassing debt, it will be a long time before you get rid of it as well.