Comments on: How To Avoid Becoming a Statistic

By: Corrie

Corrie — Wed, 14 Apr 2010 00:45:04 +0000

Beautifully written, loved it!

By: Lisa

Lisa — Wed, 14 Apr 2010 00:09:15 +0000

The most important ways to avoid bankruptcy:
1. Live within your means, or better yet, slightly under them.
2. Pay yourself first. Each time you get paid, put a certain percentage into savings.
3. If you can’t refrain from using your credit card, then don’t keep it in your wallet. Put it where you keep your birth certificate and marriage license, so you can’t impulse shop. If that isn’t enough to control you, then cut the card up because you should have one.

I’ll be honest. I like to surround myself with pretty things. But I don’t *need* those pretty things, and if I don’t go shopping, I don’t know what I’m missing. So when I simply must go to the mall, I plan my route strategically, to get what I need and get out. I don’t stop to look, because if I do? I’m doomed. I think we all need to learn our weaknesses, and then figure out a way to avoid them like that, if we want to stay out of debt.

By: Kathy

Kathy — Tue, 13 Apr 2010 20:48:58 +0000

I completely agree with what you’ve said, Emily. Your answers on how to completely avoid becoming a statistic had me laughing today. Thanks for that.

Your numbers on the percentage of bankruptcies caused by medical bills are accurate and should give anyone pause. The saddest thing is that many of those folks HAVE insurance!

It is so true that we are all but one misstep from disaster, even more now than ever before.

My ideas to add:

1: Never put more on your credit card than you know you can afford to pay off in full at the end of the month. Not always possible, but try to stick with it as much as possible.
2: Failing that, try to make more than the minimum payment due on your credit card bill. This will allow you to pay down your balance more quickly.
3: Before you buy something that would take you into debt, think about it. Is it something that can wait until you can save the money up to purchase it?
4: Avoid payday loans and other short term financing like the plague!

Thanks for the wonderful post.

By: Abigail

Abigail — Tue, 13 Apr 2010 17:25:35 +0000

Unfortunately, I don’t think anyone can completely safeguard him/herself from bankruptcy. Not until a lot of changes go through the insurance system in this country.

Back in 1999, I was so severely ill that I spent 3 months in the hospital on life support. At the long-term care facility (2 months or so), I had two or three doctors. One of them sent us a bill for $70,000. That’s not the cost of feedings, room, medicine, occupational therapy, physical therapy, respiratory care. Just the doctor’s bill.

We were lucky; my parents had excellent insurance. Amazing really. But if the company had fought them on even one or two things, it would have been a financial disaster.

That said, I do think it’s incumbent on all of us to try and avoid debt as much as we can. With pretty much all the tools you mentioned. Beyond that, I think it’s down to luck, hope and determination.
.-= Abigail´s last blog ..Should I get AAA? =-.

By: Tracy

Tracy — Tue, 13 Apr 2010 13:47:35 +0000

Compared with my friends I have very little debt. I have less than $8000 total in debt, not counting day to day expenses. I’m debating on paying off my car note (something I HATE having) with some investment money I have coming to me. And my student loans will be low enough by next tax season that we can pay them off then. I live by the moto, that if I can’t pay cash, I don’t need it. Except in rare instances, when a car just dies before its expiration date.

By: Jersey Mom

Jersey Mom — Tue, 13 Apr 2010 13:36:59 +0000

What a coincidence, I'm at a point where I'm contemplating on paying off the mortgage but wondering if I should or not with money in my investment acct. I'd like to have no debt (no mortgage) but don't want to have too little in savings either... .-= Jersey Mom´s last blog ..A Disorder I Live With =-.