What's the Best Way to Attack My Debt?

New Pittsburgh Courier; City Edition › August 20, 2009

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Summary

Admit that you're in debt. The telltale signs for you are evident-you're struggling to stay on top of the bills. Wouldn't it be nice if you'd seen the warning signs before it got to this point? Debt is like cancer. If detected early, you can avoid this from spilling over to other areas of your life. You can avoid the stress and agony of fighting through a mountain of debt. You can avoid the possibility of having the stuff you bought with debt amputated (sold, repossessed) from you. I've developed a litmus test to help early detection. If the balance on your credit cards is equal to or greater than the balance in your emergency fund, you have a pending problem. If the balance on your car note is equal to or greater than the balance in your retirement portfolio, you have a pending problem. Debt problems don't initially show up in your ability to make minimum payments. Debt and/or financial problems initially show up in your inability to accumulate and preserve savings.