Yikes...sorry, I put the wrong title up there. That is the title of one of my future blogs. So you will definitely have to stay tuned. Anyways, this blog is actually about finance, but before you click the close button, maybe you should read some of the statements composed below. They are false statements corrected. If you have said one of the following statements and believed they were true....do not worry, you are not alone.
STATEMENT 1: " I finally own my home!!!!!!!!!!!!! Yippee!!!!"
FACT: If you currently have a mortgage that you are paying monthly....then you DO NOT own your home. You only own your home AFTER you pay off your entire mortgage and the title is physically in your hands. Most people do not own their home, they just assume because they bought it, they officially own it. When a person purchases a home, they will stretch out their payments for at least 30 years. And unless you aged faster, won the lottery, or put more towards your mortgage payment every month, (which I strongly advise if you can)....You DO NOT own your home. If you believe that this statement is actually false, I DARE you to call your mortgage lender and immediately stop making payments. When the collection calls start, please be sure to tell them that you simply just stopped making payments because you now own your home.
FACT: Even if you DO actually own your home, (meaning you actually have a physical title in your hand naming you as the the owner)......you still never own it. Why? Because you can not take it with you on that long extended, permanent vacation. Just make sure you keep it nice and clean for the next owner. They will really appreciate it.
"Naked I came from my mother's womb, and naked I will depart (Job 1:21)."
STATEMENT 2: It's Thursday!! Do you know what that means?? Pull your credit numerous times. Nothing wrong with that at all! Personally, I pull my credit at least 30 times a month!
FACT: I actually can not believe how many people actually think this way. Bogus huh? Anytime you inquire about your credit report, it drops your score. End of story.
STATEMENT 3: I have soooooo much more money now!!!! Please put it on my visa. CHARGE!!!!! CAUSE I AM RICH!!!!!
FACT: Really??? Since when is having a credit card limit a sign of having more cash? Wait...maybe I did not say that right. How about this......IF YOU HAVE TO CHARGE IT....YOU AIN'T GOT THE MONEY. YOU ARE BORROWING IT....AND YOU GOTTA PAY IT BACK. Last time I checked, borrowing does not qualify as having additional income. Nothing wrong with using credit cards....but beware, you may quickly find yourself in a LOAD of debt.
SIDE NOTE: PLEASE BE SURE TO CHECK YOUR MONTHLY CREDIT CARD STATEMENT AND LOOK AT THE INTEREST RATE. And if you have that "no interest" until 6 months or however long,....make sure you pay it off before you have to pay the interest.
FACT: Even taking too many credit cards that promise "no interest until"....still probably means you DID NOT HAVE THE MONEY. And do not use that excuse "I am trying to build up credit that is why I have 15 credit cards all maxed out"....Sorry, I do not buy that excuse. ACT YOUR WAGE. There is no reason why a person should have a credit card in every single store they have ever stepped into. So, the next time that cashier trys to bribe you with 15% off your current purchase, just remember you will be paying much more later if you accept that small deal. JUST SAY NO!
STATEMENT 4: So what??? I got bad credit....it really will not affect anything else in my life.
FACT: Having bad credit does more then just affect your ability to purchase things. Many people gauge a person's level of responsibility by their credit score...i.e. some employers. Think of credit as your ticket to freedom. Having bad credit will impact you in more ways then you think.
STATEMENT 5: You should really realllly take out student loans if you need just some extra money. I mean it is a GREAT way to pay my current bills!!!! Gotta try it folks. And you can actually take out like 2 million dollars!!! But don't worry....when the bills start rolling in....YOU CAN ALWAYS FILE BANKRUPTCY AND NEVER PAY BACK!!!! Awesome right?
FACT: Student loans are usually non-dischargeable in bankruptcy. Most people will still have to pay their student loans even after they file bankruptcy. It is extraordinarily hard to get out of paying your student loans.....but then again....why did you borrow so much, knowing you would be unable to pay back?
FACT: Education is extremely important, but a person should always weigh how much they will get in return for that degree they just paid for. Sometimes, getting that extra piece of paper that has PHD behind your name may actually be making your financial situation much worse. What is the point in continuing to get degrees when the job you get afterwards will not provide you enough financial support to pay back the money you borrowed. In other words....weigh you options. Higher degrees do not always mean higher pay....
And...if you borrow money KNOWING that you can not pay back let me just say, SHAME ON YOU!
"It is better not to vow than to make a vow and not fulfill it (Ecclesiastes 5:5)."
STATEMENT 6: I just came up with this awesome plan to just move and move and move.....then, my creditors will DEFINITELY forget about me. And I will be freeeeee!!!!!
FACT: You can run but you can not hide. Collection agencies have creative ways to find out where you are. Although they are not allowed to reveal your current situation, a creditor is allowed to:
- Call your friends and family to find out new information on you, Skip Tracing
- Pull your credit consistently when they are looking for you. They can track you by the stupid overpriced purchases that you keep making
- They can knock on your door if you owe them money
- They can use your facebook information....with all the great information you put out there.
- And if you post any pictures of new items you have...beware....that is evidence against you.
This list can go on forever. I just do not have the time. Just pay your bills. It is not an option.....
"Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, “Go, and come back, and tomorrow I will give it,” when you have it with you (Proverbs 3:27-28)."
STATEMENT 7: Since I know I am having a hard time with my bills...may as well just avoid the collectors. Maybe change my phone number? (I always wonder people who have a different cell number all the time...don't you? I mean the last time I checked I thought you could keep the same number even if you change carriers....hmmmmmm.......)
FACT: If you are having problems with paying your mortgage or anything else, CALL THEM. Sometimes there are things that can be worked out...i.e. short sell. Believe it or not, many creditors will try to help in some way, if you communicate with them what is going on. This is not an absolute promise, but hey it is definitely worth the shot. After all you did promise to pay back. Didn't you?
FACT: It costs a bank more to foreclose then it would to let the current "owner" (as people have been falsely taught) of the home remain. Why? Because when that property is left by the previous "owner" then the bank has to pay a lot of money just to keep the property looking decent.
FACT: When a person runs away from their bills (ie mortgage), they are making their next door neighbor and YOU pay for it. See for yourself.....research it.
FACT: If you have a problem with paying any of your bills then you should immediately contact your creditors. Avoidance will only escalate the problem. Many people do this simply because they are ashamed of their situation and do not like to ask for help.
"Pride goes before destruction, a haughty spirit before a fall (Proverbs 16:18)."
STATEMENT 8: In 7 years, all of my bad credit will automatically disappear and will never show up again.
FACT: No it will show up. It is not uncommon for an individual to have to contest the (all 3) credit agencies in order to remove all of the delinquent items.
FACT:***** * VERY IMPORTANT****
JUST BECAUSE IT HAS BEEN 7 (OR IN MOST CASES MORE) YEARS DOES NOT MEAN YOU WILL BE FREE AND ABLE TO PURCHASE WHATEVER YOU WANT. MANY COMPANIES/CREDITORS WILL CHECK TO SEE IF YOU HAVE PAID CONSISTENTLY AFTER YOUR LITTLE MISTAKE. IF YOU HAVE NOT SHOWN ANY IMPROVEMENT AFTER 7 YEARS, THEN WHATEVER YOU ARE TRYING TO ACHIEVE, IS NOT GOING TO HAPPEN. IF YOUR HOME HAS BEEN FORECLOSED, IT IS IMPERATIVE THAT YOU SPEND THE NEXT 7 YEARS TRYING TO ESTABLISH GOOD CREDIT AGAIN.
STATEMENT 9: What the heck is the point of savings....? I may as well just spend away and live life to the fullest because you never know what will happen.
FACT: The only part that is true about this statement is the portion that is underlined. Savings is not only important but necessary.....especially for those rainy days. My dear friend was gracious enough to share with me the advice below: (It saved me a lot of trouble, and hopefully it will help you to).
"On the first day of every week each one of you is to put aside and save, as he may prosper, so that no collections be made when I come (1 Corinthians 16:2)."
"Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth (Ecclesiastes 11:2)."
"A wise man thinks ahead; a fool doesn’t, and even brags about it (Proverbs 13:16)."
STATEMENT 10: So what if I do not pay back money. I am still a great person!!!!
FACT: Ummmmm......
"The wicked borrows and does not pay back, but the righteous is gracious and gives (Psalms 37:21)."
Just not paying back.....is just MEAN! How did it feel when that person came over your house, borrowed your stuff, only never to give it back. Robbed? Betrayed? I bet you still even remember that person's name that owes you $10.00.....imagine how some of those banks feel when people owe 100,000 +, and never pay back.
Bloggers note: Please take the time to research this information. Because I was doing this on a whim, I did not have the time to look up the essential resources. I will probably update that information in a future blog. However, if someone tells you something, you should always research it for validation. All the statements to my common knowledge are true. However, if you are going through financial struggles and you are trying really hard......Do not worry!
"Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own (Matthew 6:34)."
Bottom Line: Life is not perfect and sometimes things happen that are not within our control. Financial problems is one of the leading cause of family destruction. Unfortunately, many people bring financial destruction from their own foolishness, lack of knowledge and greed.
"Also it is not good for a person to be without knowledge, and he who hurries his footsteps errs (Proverbs 19:2)."
Written By: Te-Shandra Haskett, MBA
May you be Financially Blessed!
"The blessing of the Lord makes rich, and he adds no sorrow with it (Proverbs 10:22)."
