Credit Problems Start with You

There is no doubt that 2008 has been a tumultuous year for the credit industry. The problem is the true culprits aren't taking the blame, but are pointing the finger at everything else. Who is the culprit? Greedy Americans that are living beyond their means.

Greed takes the lead
Many Americans live their lavish lifestyle on their credit cards. Trips here, the latest in fashion there, sending the kids to a private school they cannot afford. Then when the mortgage rates dipped, they ran out and used the opportunity to buy a house they could afford while the rate was low (or the payment was interest only), but now can't afford when the rate is higher and they have to pay principal and interest.

To these people I say,"You only have yourself to blame."

What can you do?
After you take the first step of accepting your part in your downfall, it's now time to do something about it. The solution to the problem is NOT to stop making the mortgage payments on your house or only make the minimum payments on your credit card. You have to proactively take action and find ways that solve your credit problems.

*Get a second job: And I don't want to hear that there aren't any jobs out there because there are still plenty of companies hiring. Serve fries up at McDonald's if you have to, but find a way to bring some additional funds into your bank account and your household.

*Use some of your savings: While you don't want to deplete your savings in case of an emergency, if you have funds set aside for a rainy day, it's raining people. Read an article I wrote for BillSavings.com about paying off your debt using your savings and how it'll benefit you.

*Find other ways to pay off debt (even if you don't have savings): For those that don't have cash savings, don't throw up your hands in defeat either. There are plenty of other options for you. Read my article Reducing Debt Even if You Don't Have Savings to see which options are viable for you.

The bottom line is that you're the only one that can get yourself out of the mess you've created. Don't wait for a bailout. Don't give up. Take control and do whatever you can to get your personal financial situation under control.