Beating Debt News Archives

As the cartoon humorously depicts, America likes getting exuberant about making money fast.  We are currently in a tremendous down turn in the housing market.  Many people jumped on the band wagon and bought a home with hopes that it would sail them to financial freedom.  Many jumped in late, ignored the looming danger to the market, and are now overburdened with great debt.  

But this is not new.

Look as far back as the Gold Rush in the 1800s in California.  Some people made a lot of money during the gold rush.  Most did not.  Those people sold everything in their exuberance to move to California and find gold that would sail them to financial freedom only to find hardship and heartbreak.  

Fast forward many years to the internet bubble that sky-rocketed some people to riches.  In America’s exuberance, many others invested revenue in poor internet companies and lost a lot of money.  

Once again, our greed and exuberance to make money fast persuaded us to devote money to questionable investments.  Now, many people are finding hardship and heartbreak because they are forced to sell a house for what it is worth instead of what they would like to sell it for or even what they bought it for.

When one looks out at the many financial investments in the market, what is one thing that seems to be a “guaranteed” way to make money?  Oil.  Right now, oil is rising faster than any other investment.  ”Oil stocks are a safe bet.”  Or so most think.  But if history is bound to repeat itself if we do not learn from it, could the oil market be experiencing an American exuberance that is bound to come back down to reality?

Either way, the safest way to earn money is to pay off your own debt.  Don’t worry about gold, internet stocks, real estate, oil, or any other trendy investment scheme.  If you have debt, or you are faced with incurring debt in the future, take any extra money and use it to beat debt.  Beating debt guarantees money back into your pocket from not paying the extra interest rates from the loans.  Why spend all day scouring the markets for that investment vehicle that earns you 10% when you have a 12% credit card sitting in your pocket that is sucking your money?

Do the guaranteed investment and invest in beating debt!

Photo courtesy of Roy Delgado