1 of 5 Questions To Help You Get Out Of Debt

If you came into my office sat down, and said, "help I'm in debt," I would ask you 5 question's hoping that you'd be honest about all of them.



1. Why Are You In Debt?

Is it because you made a late payment on a credit card and now your interest rate has left the ground like a missile? Was it due to a divorce and a dead-beat ex? Was it because you were laid off or for a medical bill?

I would ask you 'why' because every persons debt situation is unique. Knowing why you are in debt will help you step back, and see what you are normally too close to see. Stepping back gets you thinking about the debt instead of feeling the affects of the debt.

For example, one of my client's Glenda took an $1800 cash advance on her credit card to help her daughter with expenses for college. Glenda had no idea that the cash advance rate for her credit card was 29.99% . (click picture for full view)














Glenda paid her minimum payment of $47 every month on time. But Glenda had no idea that $1,800 at 29.99% would mean that she would have to pay $30,613 in interest (alone) for a total debt pay-off of $32,413.

So the reason why Glenda was in debt was because of high a interest rate on her credit card.


There are many other reasons 'why' a person is in debt. But the first question that I ask is always "why". Asking why usually opens up a whole world of answers.

What do you think? Share your comment's regarding any post you see here. Or if you have specific debt related or media inquires contact jcarltonford@yahoo.com