Debt
Good news!!
I was 14 when I fell in love for the first time - with a sweet, 20-year old riding lawn mower! With keen business sense, I approached my dad with an offer: "I'll mow our lawn all summer AND pay you back if you'll ‘front me the money' for the mower." I had visions of riches as we closed the deal, and a week later I was proudly rolling down our street to my first lawn-cutting job. But as I mowed lawn after lawn (including ours) through the summer, I got weary of handing over all my profits to my dad. After two months, I celebrated my last payment ... and graduated with my "Debt Stinks" diploma from the School of the Real World.
I've thought of that summer often, particularly over the last few years. While there are often excellent, practical reasons for borrowing money, it's nearly always true that a person OUT of debt is in a financially stronger position than someone who still owes others money. We see this playing out in significant ways as our nation's leaders debate our national debt.
Of course, for those with old-fashioned, Midwest values, this may be nothing new. Research recently released ranked average indebtedness (excluding student debt) by state, and Iowa and Nebraska were both in the top ten least-indebted states. You can read the article, and see the rankings here.
What does this mean for you? Work with your advisor to develop a strategy to eliminate the liabilities from your balance sheet, then be sure to implement the strategy with automated payments.
And if you fall in love with a sweet-looking antique lawn mower ... pay with cash!
NOTE: [[[Link address: http://moneywatch.bnet.com/saving-money/blog/devil-details/debt-in-america-most-least-indebted-states/4899/]]]
Respond to Debt