Financial Stress

Myself, and many others, have had their lives directly impacted by the economic down turn. Many folks have lost their careers, their jobs, their businesses and savings. Losing ones job can have a rippling effect that can bruise an ego, shake a relationship, and challenge your financial foundation.

For some, the burden of financial stress can compound just as bad as those terribly high interest credit cards. The department stores love to offer easily obtainable credit in times of economic challenge as it helps them create a projection, and it inflates consumerism.

When times are economically tight, it can become easy to fall prey to the tempting credit card offers and hey why not? It's an in store promotion and wow look, I get a coffee set, and a matching pen. All joking aside, I've obtained credit from a variety of well known department stores for one reason or another, you know, maybe to get clothes for the kids, or purchase some groceries. Instant credit approvals become very tempting, especially when you need food or other necessities.

While I was assessing my financial situation and trying to change my employment status, It became obviously apparent that my savings, although enough to sustain my debt for a few months, was not enough to sustain even a basic lifestyle. Trying to micro manage a dwindling amount of money was futile. Soon I was broke.

It was easy to justify using my credit cards to fill in the void. I have always reserved credit for "In Case Of Emergency" usage only, and this was a suitable enough circumstance. It took no time to become in debt up to the ears. Finally I got back on my feet again and things are looking up, but there was a lingering reminder of the cost of losing my job. The easily obtainable credit was costing me 28% with compounding interest, and it prolonged the repayment by months and just added to the financial stress. It took some time, but, I managed to get caught up in my finances and have since adopted some simple financial philosophies.

I am by no mean an economist, but rather, a regular guy who needed a sustainable action plan that assured my monthly finances were secure. Firstly I needed a clean slate and that meant closing the high interest accounts, and destroying the department store credit cards.