The holiday season is upon us, Sisters and Brothers. I am reminded of the Dickens classic, "A Christmas Carol", in which Jacob Marley, in death, wore the chains he forged in life. Marley's ghost comes back to warn Ebeneezer Scrooge that he, too, will bear a heavy chain if he doesn't change his way of life.
The burden of consumer debts, Brothers and Sisters, are the chains that we wear in life. We forged these chains, link by link, over time. We can break these chains, but it will take time and effort. The breaking of the chains, and the throwing off the shackles of the Down-Pressor, is not the work of a moment, but rather a change in the way we live our lives. It is a hard labor, my Brethren, make no mistake. The benefits, however, are great, and the freedom that comes of our efforts is sweet reward indeed.
Today I want to lay it down about actually paying off our debt. I know that we are looking hard at the ways to stop increasing our debt. We are not digging the holes any deeper because we are putting down the shovel.
People ask me, "Hey Rev, its fine to talk about paying off my consumer debt, but how do I go about doing do that?"
Good question, Brethren! How exactly do we start paying off our debt? The first step in the process is knowing how much we owe and to whom. The Rev has been urging all of our Sisters and Brothers to build a budget so we all know where our money is going. In addition, we need to know who our money is going to. One good starting place for debt reduction is to make a list of any and all of the people, or firms, that we owe money to, or make payments to. The list should include the outstanding balance, the monthly payment, the due dates and, most importantly, the interest rates for the different cards or accounts.
Once we have out debt list completed, we will have a clearer idea of where our money is going, and to whom. As we are compiling our list of debts, it is also a good time to spend some time reviewing the actual credit card statements. Are there charges on our credit card statements that are not in our budgets? A critical review of our credit card bills can illuminate our spending habits for us, and can show us where we might be trimming some costs. Impulse purchases show up on the tally, or eating lunch out when we could have brown-bagged it, or paid cash. The Rev likes to take a high-lighter to that old bill, smearing a big blob of yellow across the items that might not have been the wisest purchases.
After we have our list of debts, we need to apportion the money to pay these debts off. Here is where the pain starts, my Brethren. It is time to bite the proverbial bullet and pony up. Credit cards can have interest rates as high as 20% or higher, and minimum payments as low as 2-3%. If we pay off only the minimum balance, it can take up to 25 years to pay off debt of $10,000. This is exactly what the Down-Pressors wants us to do, my Brethren. The Down=Pressor loves the minimum payment because it makes him rich!! We have to strike a blow by paying more than the minimum payment listed on the billing statement. The ability to do this will vary greatly amongst our people, but we have to try. If the best we can do is to double the minimum payment, that is what we should do, knowing that we are making progress.
While we are apportioning money to pay off our debts, we need to decide which debts to prioritize. Many financial experts advise paying off the highest interest rates first. The Rev agrees with this approach, however there are other ideas as well. Some wise folks advise to pay off whatever debt concerns us the most, or to pay off some of the smaller debts first as this often affords a sense of accomplishment. All of these methods are valid and our Brethren need to decide which to employ. The Rev advises whatever method yields the best sense of personal satisfaction for our Sisters and Brothers. If paying off one of the smaller cards encourages us to work harder on some of the bigger debts, the Rev shouts "Hallelujah!!"
Once we begin paying down our debts, we can try to persuade the banks and credit card companies to give us a better interest rate or fee structure on the existing debt that we have. The worst thing the Down-Pressor can say is "No," and they may do exactly that, but they certainly will not lower our interest rates if we do not ask. Now, Sisters and Brothers, dealing with the Down-Pressor is a tricky business. He is slippery and he is sly. The Demons do not want to give you a lower interest rate. They do not want to relieve you of any of the fees or burdens that they lay upon you. When we deal with the Down-Pressor, we have to use a language that they understand, a language the temporarily lulls their greed to sleep. I have attached a link, below, that lays down an actual script for asking a bank or card company for a lower rate. I hope this will be of aid to our Brethren.
Brethren, it is time to take action! Every journey begins with a starting point, and the journey out from under our oppressive debt is no different. Take that first step, Sisters and Brothers, take that first step towards a life that is free of the Down-Pressor's chains of debt.
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