I normally don’t publicize my political beliefs, but this year I feel very strongly that a change must be made in order to protect the future of our economy, healthcare and national security.
This morning I noticed a prominent article in the New York Times called, “Given a Shovel, Digging Deeper Into Debt.” It’s the first in a series of articles called “The Debt Trap” that focus on our over-extended credit based society.
Even with the down-fall of large mortgage lenders who had, up until recently, based lending on some very unethical practices, credit is still easy to get, to use and abuse.
Any tightwad worth their salt will tell you that when they made the conscious choice to lead a frugal (and greener) life, they realized that credit cards could not be a part of it. How can you save money yet spend loads of it on monthly interest payments to creditors? As the NY Times points out about the consumer featured in their article:
Ms. McLeod, who is 47, readily admits her money problems are largely of her own making. But as surely as it takes two to tango, she had partners in her financial demise. In recent years, those partners, including the financial giants Citigroup, Capital One and GE Capital, were collecting interest payments totaling more than 40 percent of her pretax income and thousands more in fees.
I have worked with many people just like Ms. McLeod who literally spend 30-40% of their income on interest payments and I’ve seen the devastation it causes, like:
- Marital/Family problems
- Instability when unforeseen issues arise like medical problems, loss of job, separation, etc.
- Debt-to-income ratios that prevent people from getting a good mortgage to buy their first home
- Negative effects on credit scores
- Stress
So, how do you get out of debt?
I’ll be the first to tell you that it’s not easy and it takes time–but you can do it!
If you only have one or two credit cards, simply cut them up and start paying as much as you possibly can on the one with the highest interest rate. Once you’ve paid off that card, start on any others you have.
If you have several cards and the added complexity of other debts, then it is best to speak in person with a qualified credit counselor. [Be very careful when searching for a credit counselor--there are lending agents out there who disguise themselves as non-profit entities.] In most cases, credit counseling is free and accessible.
Your best (and safest) bet is to visit the National Foundation for Credit Counseling to find an accredited agency in your area. These counselors know their stuff and know how to navigate and tame serious debt problems.
So, go ahead and throw out your plastic. You don’t need it and you certainly won’t miss it.
By the way, thanks for listening to me on the soapbox!
While visiting my folks recently, I watched ad after ad on TV promoting Discovery’s new “green” channel, Planet Green. Not having watched commercial television in several months (no TV at home) I was very excited to think that there is enough interest in “going green” that Discovery would dedicate a whole new home improvement channel to the movement. However, once I started seeing promos for the featured shows on Planet Green, I realized that the bulk of PG’s shows were devoted to pushing green products and services, and less about reducing and reusing.
Green products are great, and I’m very happy we have the opportunity to choose them in a world that often doesn’t seem to care about the environment [just be careful not to buy a product that's been greenwashed]. But how green is something that’s made in a factory half-way across the planet and shipped to your home? Every product, no matter how “green,” has an embedded carbon footprint that you can’t see and is not currently disclosed to consumers on a label. I mean, you want to be green, and you need to consume products and services to live, so how do you get around this consumer conundrum?
Lean green
If I were a producer for Planet Green, I’d start a show called (of course) “Gritty Green.” It would be about living a greener, cleaner, simpler life, with a dash of frugal savvy–a life I humbly attempt to live now [I'm no expert, but I'm more frugal than my neighbors].
Up front, I’ll admit that there are several issues with my new Green Planet channel idea:
- It’ll be hard to get corporate sponsorship for a show that doesn’t promote many corporate products
- Without corporate sponsorship, it may last all of one pilot episode
- My show may possibly sour people’s taste for other Green Planet shows
Oh, well. The biggest issue, though, is the fact that I’m not a producer for Green Planet. I am, however, a blogger!
Introducing Gritty Green
I put together Gritty Green (GG) to collect thoughts, hints, resources and, yes, some products and services (re: tools) that will help you become greener, more frugal and (best of all) put you on the path to anti-consumerist financial stability if you’re not there already.
There is a synergy between living a green life and living a frugal life. The epicenter of this “groundbreaking” philosophy (ha!) is based on consuming less stuff. You need not worry about the carbon footprint of that pretty “organic” bamboo bowl you saw in a retail shop if you never buy it in the first place. In fact, in my opinion, you still need not worry about it if you buy it used from your local thrift/charity shop. And, by the way, do you really need that bamboo bowl? What about a not-so-pretty but reused egg carton, to hold that fresh fruit? Or maybe you’ve got something already–Aunt Bea’s old mixing bowl–that will work just as well, and look just fine?
The ultimate goal, of course, of living a gritty green lifestyle is you’ll save cash, save fuel, save other resources, and save the planet while you’re at it. GG will have several articles to help you get there so stay tuned!–better yet, subscribe to our rss feed in the sidebar.