A Personal Finance Story

I had a kid in my office this week who ran into some financial trouble. Thankfully, it wasn't major, but it was enough to give him a scare. I was able to help him out and give him, what is called "Education". (It's a term that I've picked up from the Mrs and her nutrition counseling). So as I talked to this kid, I realized that no one had really given him the answers he was looking for. He asked me about what "APR" meant, the difference between "platinum" and "classic" credit cards, and a number of other things. It got me thinking that there are probably thousands of college bound (probably older individuals as well) who have NO IDEA what credit, debit, and other important terms mean, how they affect their lives, and the over all picture of good financial health. Here is a Great Article for Students who might be worrying about their future or have questions about their financial futures. ----- On a personal note, around six years ago, I found myself with around 4-5k in credit card debt between 3 credit cards; I was becoming just another statistic. I had talked to a friend who found himself in a similar situation and he recommended, Care One Credit counseling. Over a two year period I worked myself almost completely out of debt. It was awesome to see how I turned my failing credit into excellent credit in a few short years. Here are a few pointers of my own that I've picked up along the way that I give to people with questions: 1) Keep up the communication - your creditors can't help you if you don't talk to them. More often than not they ARE willing to help you avoid ruining your credit...why? because you're more likely to PAY them back! 2) Keep up on your minimum payments and MAKE THEM ON TIME - The most important thing is to make payments on time. It helps to show creditors that you are responsible. yes, in the short term you're just paying off interest, but over time, you'll work your way back down to principle. 3) Balance your BUDGET! (and cut the fat)- You don't know how much money you spend or how much money you have left over at the end of the month if you don't put it on paper. Remember, paper is always better than your memory. Learn Excel or ask a friend to help you balance your budget and get rid of some of those loose ends, like do you REALLY NEED that $50 subscription to ESPN the Magazine AND the $300 pay per view package to watch the NFL? (no) ok, go out there and get 'em. If anyone wants a starter budget (in excel) drop me a line and I'll help you out. And in case anyone has any questions about debt management options, click on the link.