ICFE eNEWS #11-31 - September 6, 2011
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"S.O.S." Your Debt - AskMrG

From the ICFE's Ask Mr. G's Library

Most people know that "S.O.S." is some type of distress call, but most people have no idea what it means. The popular notion is that it the letters stand for "Save Our Ship" which was used by the military in battle. You may be surprised to know that in reality the acrostic has no meaning at all!

The letters "S.O.S." were used as a Morse code distress signal by the military in telegraph communications. Those letters were chosen because they were easy to remember and easy to use. "S" was three dots in Morse code, and "O" was three dashes. Thus, "... --- ..." was an abbreviated way to send a distress signal that you were in trouble and needed help.

With that said, I believe it is high time we send an "S.O.S." call about our debt! As a veteran credit counselor in the "trenches" with people plagued with debt problems, I am telling you that stress from debt is at epidemic proportions!

Debt is robbing us of our happiness, our health, and our heritage. I just read that 14% of 64 year olds will enter their retirement with negative net worth! They have no choice after retirement but to buy a new pair of tennis shoes and be a greeter at Wal-Mart.

If you are tired of spending everything you make, never having any extra, running out of money before you run out of month, and always "robbing Peter to pay Paul", listen to me. There is hope for you. There is something within your reach that you can do to change things.

Send an "S.O.S." to your debt! Here's how it works.

"S". See your debts as one debt. Make a list of every debt you have, credit cards, loans, mortgages, cars, boats, etc. Make three columns to include the name of the debt, the current monthly payment, and the present balance. Total each column so you will know the total amount of debt you owe and the total amount of monthly payments you are making. View this list as your "enemy" over which you want to gain freedom.

"O". Offer each creditor an unchangeable payment. The monthly payment for some debts, like credit cards, is based on a percentage of the balance, so as the balance declines, so does the payment request. Our plan of attack keeps each payment at its current amount and does not reduce it, regardless of the statement request for less.

"S". Shift payments to a different creditor once each debt is paid in full. When one debt is paid off, shift that payment to the next smallest debt. Now, you are paying extra on that debt which is applied directly to its principle.

This plan would pay off $10,000 of credit debt in about seven years instead the normal thirty years and give you a cost savings of $10,000 and a time savings of 23 years! Eventually, the entire monthly debt payments you are presently making would go toward your mortgage payment! Now that's what I call a plan!

Borrowing to get out of debt is like digging a hole in the front yard to fill in the hole in the back yard! A better solution is to send an S.O.S. message to your debt. It is easy, effective, and emotionally healing.

Ask Mr. G
© Jim Garnett
AskMrG Financial Library
2216 SW 35th Street
Ankeny, IA 50023
515-577-1799
askmrg@yahoo.com
AskMrG.com


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Sent by:

Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)

About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

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and the Institute of Consumer Financial Education, All Rights Reserved.
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PO Box 34070
San Diego, Ca 92163
Paul S. Richard, Executive Director
Phone 619-239-1401

FAX 619-923-3284

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Home ] ICFE News Releases ] ICFE in the News ] Children and Money ] Financial Education ] Resource Center ] Credit Card Tips ][ Credit File Correction ] Mending Spending ] Links and Resources ]  [ Online Store ]

 

Copyright ©  1997 - by Paul S. Richard
and the Institute of Consumer Financial Education, All Rights Reserved.
View our
Privacy Policy Our Terms and Conditions

Institute of Consumer Financial Education
PO Box 34070
San Diego, Ca 92163
Paul S. Richard, Executive Director
Phone 619-239-1401

FAX 619-923-3284

Questions for www.financial-education-icfe.org Click to go to Website Contact Us or 
Website Design Donated by Desgn School Programs