Twelve Steps for Debt Addiction

Americans have grown so used to overspending that for some the thought of a reduction in lifestyle because of tighter credit is driving them to irrationality. I recently heard a news report about a paralegal who decided to get back at the firm that layed him off. What did he do to get back? He stole a tie from a clothing store! He got caught and was put in jail. The moral of the story: when you fall on economic hard times, strike back at the rats that caused it by going to jail. Go figure!

Don't get me wrong, millions of Americans are deciding to abandon the sinking ship of debt poverty in order to become debt free, but for the most part the Debt Titanic is still full of passengers that think the ship will not sink. There is a gaping hole in the hull caused by the iceberg of Debt Addiction. If we do not hurry into the life boats of Living Within Our Means and Getting Out Of Debt, many will be cast into the frigid waters of bankruptcy and economic ruin.

I think we need a twelve step program to address our debt addiction. We have gamblers anonymous, narcotics anonymous, and alcoholics anonymous. Why not have Debtors Anonymous? This is serious. When you consider the enormous amounts of debt many have beyond their mortgages, it is scary. Until recently, I myself was in over $40,000 of credit card debt. I've heard true stories of others in twice as much as that. I certainly needed something that would give me some hope, and because I found it, I now am debt free except the mortgage on my home. Did I find a twelve step program? Well, sorta I guess. More about that next time.

Taking Responsibility

Now that I have ranted about the current state of the economy, let's talk about how to escape debt poverty. Well, maybe I should define debt poverty first. Debt poverty is the economic condition experienced by many Americans in which their total debt payment leaves them with little or nothing left over for basic expenses. This results in the use of more debt to finance basic expenses causing a debt spiral leading to what feels like imprisonment.

Can you feel the frustration? Is this a description of your situation? Don't despair, there is hope. There are no easy fixes, but there is a way of escape. If you recognize that you are in need of help to get out of the mess you are in, you have begun to break the chains that bind you.

Once you have the knot in your stomach that all is not peachy creamy, then you should take an account of what your real situation is. It's time to face your dilemma head on. Pull out all of your debt statements and add up the total amount of debt. Then, find out how much you pay each month in debt payments. Hopefully, once you see this, you will get motivated to make changes.

You need to include your car payment(s), credit card payment(s), school loan payment(s), mortgage payment(s), and any other payments you make that are credit related. Be sure that you leave nothing out. It is important to be totally honest with yourself and/or with your spouse, and visa versa. Nothing is more frustrating and damaging to recovering from your debt addiction than not being honest.

You must complete this exercise before you can escape debt poverty. Ignorance of one's economic status is a sure way to financial ruin. Deliverance from the tyranny of debt begins with taking responsibility for your financial actions. This may be one of the toughest parts of escaping debt poverty. Those who face the problem will win; those that do not won't.

Enough Is Enough

Ford, GM, Chrysler--no matter what you call it, they are still asking for a bailout. No doubt they are going to get it. My problem with it is not that they will get tax payer money, but where the money will end up. It is a shame for congress to demand that the Big 3 present plans for restructuring the way they do business without demanding that the United Autoworkers Union do the same.

It is common knowledge that the other automakers (Toyota, Honda, etc.) do not have the legacy overhead costs that the Big 3 have (most of which is due to union payouts of some sort), and that they are more nimble because there are no unions bosses to satisfy when changes are made. Detroit automakers will not survive with the current productions costs they have to bear no matter how much money the government loans them.

Things have changed. Americans cannot go back to the way we have lived for the last two decades. Our viability as a nation depends upon everyone of us coming to grips with this reality. Neither businesses nor individuals can borrow their way to affluence any longer. Big unions will have to adjust their demands upon companies in exchange for job security, and they will have to revamp their organizations to cut the fraud and waste as well.

Our nation was built upon free enterprise with limited government interference. The current economic environment has been a catylist for some to move to change the basic structure of our economy from capitalism to quasi-facism. It is a major shift when the government uses borrowed money to buy shares in financial institutions that they regulate. This is the proverbial "fox in the hen house" scencario. The waste and mismanagement in the government is a good indication that those in charge need to do some house cleaning before they can take on some one else's.

It is up to the American people to say to goverment and to big business, "Enough is enough!"  We will not continue to sacrifice our children's and grandchildren's futures for the immediate gratification of bigger and faster toys. We have to put them on notice that the era of irresponsible spending has ended not only for individuals, but also for government and big business.