Debt? You're in [Good] Company

It’s fair to say that most of us are faced with the temptation to shred that pile of bills on our desks into confetti for our New Year party. I for one want to personally thank Visa, Master Card, Discover, along with a huge list of other store specific credit cards for making my own holiday a particularly festive one. But lets face it dealing with your debt is not something you want to procrastinate on for too long.

They say money can’t buy happiness, and sure I agree, but in all honesty we all know that phrase was most definitely coined by someone who didn’t have creditors after them like they were the last hidden deep fried candy bar at a summer camp for heavy kids. (Bad image? Try being in my shoes. And yes, deep fried candy bars do exist; I saw it on the food network.) The sad truth is, when it comes down to one’s capability to get to bills paid, or bring home the bacon if you will, life actually is much more enjoyable. Not that the sky will be bluer or anything like that once your debt is gone; but I know for a fact that the grass is literally greener on the other side of the fence.

My neighbor just spent a fair chunk of change to have his yard re-sod while I on the other, and possibly slightly arthritic, hand can hardly afford to float the cost of some much needed laundry detergent. (Don’t worry I’m still managing to wash my sheets in the shower with me.) My point is the mere thought of having money lying around to devote to home improvement or anything fun for that matter, is mind-boggling! But I digress; at the risk of sounding like a cold-hearted materialist I would argue that I would in fact be measurably happier if I didn’t develop a knot the size of a small child in my neck every time I was forced to open another bill from a creditor. So okay fine, money can’t buy everything but it sure can help to pay for all the things you’ve already bought and if that doesn’t take a load off I don’t know what will.

Broke is actually the term I prefer to use since I’ve come to so passionately loath the words “in debt”. Needless to say, whoever said, “money can’t buy happiness” wasn’t a member of the broke+ club. And further more, maybe they just weren’t spending it right. If it couldn’t buy you happiness why don’t you send some my way and see what I can do? I’m a bargain shopper, obviously not a very good one but maybe I could find a deal on some happiness. On a more serious note we are all too often warned of the risks we run by our bad credit reports and I for one am a firm believer that we should take these warnings to heart if we do indeed ever aspire to “bring home the bacon” or at least maybe a nice head of lettuce. We all know that a bad credit rating will not allow for low interest loans and it pretty much nixes any chance of that house in the Hamptons.

But even if your goals aren’t quite that lofty (and I can’t say mine are) you are still selling yourself short in so many ways. Not only in the money you’re burning with high interest and late fees but also in the peace of mind you are sacrificing. In light of this I’ve compiled a list of clever signs to tell you need some credit help. If you happen to answer yes to even just one of the following, I’m sorry to say, you just might be in over your head but don’t worry you’re in, well not necessarily good, but at least a lot of company.

Do you make only the minimum payments on all your credit cards or maybe even just a smidgen less?

Is the only thing you can juggle your bills?

Do you know how much you owe or are you too scared to find out an exact number?

Are you more concerned about your delinquent bill payments than your delinquent teenager?

Do you find yourself using credit cards for necessities like food and gas?

Are you dangerously near the limit on all of your cards?

Do you have more credit cards than a successful gambler has poker chips?

Do you pay the balance of one card by using another?

For those of you who answered no to all of these congratulations, for those who answered yes, have no fear; your happiness can still be preserved. A solid guiding hand is often all that it takes. For more info on how to get help follow the link and I wish you each of you all the happiness (money) in the world.

Katie Spencer is a contributing writer for a number of international financial journals both online and in print. Katie has been delivering financial education to the public in a variety of areas to include budgeting, credit and debt management, and money saving tips. Recently, Katie has been in partnership with a national educational foundation to deliver financial advice to American consumers via the web.