D.E.B.T. Tip of the Day
Gas prices will continue to rise for the next several weeks. Make sure to adjust your budgets accordingly. (Side note: The ongoing conflict in northern Iraq will be given as the reason, though 90% of the oil wells in this country and the pipes in which they flow are well protected in the south.)
D.E.B.T. Tip of the Day (Hump Day Edition)
When your going through financial struggles, never believe your situation is insurmountable. Financial problems can always be simplified to positives and negatives. Work on eliminating the negatives while growing the positives, and you will overcome this road block.
Former First Lady and Secretary of State, Hillary Clinton, has just revealed some of the financial issues her and her husband were facing as they departed the White House. She said they were roughly $12 million in debt in 2001. She even went so far to use the phrase "dead broke" on ABC's "Good Morning America" to describe their financial woes. These statements have been met with a lot of backlash from members of the Republican party and even some of her supporters, but should people really be upset or offended by what she said?
American citizens have been taught to believe that high earning potential should equate to little or no financial problems, but reality teaches us differently. Earning potential has absolutely nothing to do with the cause of financial problems within individual American households. Whether someone earns millions of dollars per year or thousands of dollars per year, carrying too much debt will always create financial problems. While it is true that those with high earning potential like the Clinton's can more easily escape these financial problems, they are still capable of experiencing financial hardship. How does this happen? Typically these high income generating households overestimate their future earnings. They earn so much money for such a significant period of time that they often overlook the potential for a decrease or lack of substantial growth in annual income. People in these situations also tend to agree to loans that will help to validate their social and professional status. Could you imagine what the headlines would have read if it was revealed that the President of the United States couldn't afford to pay his attorneys while battling the lawsuits he was facing? What if Chelsea had to drop out of Stanford or couldn't attend her father's Alma-mater, University of Oxford, because her parent's could no longer afford to assist her with student loan repayment? How big of a story would it have been if the Clinton's were facing foreclosure on one of their properties upon exiting the White House? The former President of the United States would have been extremely embarrassed, and there is no way Hillary Clinton would have been able to go on to become a Senator or presidential candidate. The Democratic party would have also experienced a large loss of political influence had this happened. Is it possible that many of us average income earning citizens would allow such influences to impact our financial decision making process? We would never let this happen to us, or would we?
Based on recent studies, over 65% of American households have less than $100,000 in net worth, and nearly 25% have negative net worth. How could this be if so many of us are immune to making the same mistakes as the Clinton's? Surely we can blame all of this on consistent increases in cost of living expenses, right? Unfortunately, most of us can't use this excuse. The majority of people living in the United States are not living in poverty, though it has been increasingly difficult to afford the old American dream; a single family home in the suburbs with two cars, at least two children, a pet, and food in the cabinets. Average American citizens and the Clinton's just so happen to suffer from the same problem, debt addiction.
We have become entirely too accustom to using debt for the purpose of achieving our lifestyle dreams. When we drown ourselves with student loan debt, mortgage debt, auto loan debt, credit card debt, and all other personal loan debt, there is little opportunity for us to increase out net worth. While we may have a house, car, and college degree, we all can be considered broke if we can't maintaining our lifestyle without debt. Don't get me wrong, I don't think our former Secretary of State should have used the phrase "dead broke" to describe her past financial standings, but she wasn't too far off from the truth. At that point of time, her household probably had negative net worth, but they certainly had more ability than most to get back in the black. Unfortunately, most of us can't simply speak or write our way out of debt, but we can learn something from all of this. Debt addiction can be a problem for anyone, and we should't rush to embrace negative emotions simply because someone with more used one of our phrases to describe his or her financial woes. If the high earners want to embrace the phrase "dead broke" let them have it. Personally, I don't want ownership of it anyway. When it comes down to it, the Clinton's are only human, and they too can suffer from a doing everything but thinking (D.E.B.T.) addiction.
Here are your June 2014 Scam Alerts
eBay Breach Scam
Spammers are using the recent eBay breach to scam eBay customers. They are sending emails with links that offer free arrest-record searches. After the online search for records begins, an offer is presented to obtain records for the person that was being researched. Those that click on this link will be taken to a website title "Instantcheckmate.com." Once they reel consumers into accepting the free search findings and offer "confidential info" for a fee, the scam is completed. These scam artist don't actually deliver any confidential records, they simply take your money and run.
This scam involves individuals posing as wealthy families that are in need of a babysitter. They use sites like "Sittercity.com" to contact potential baby-sitters / victims. The scam artist contact the potential sitter, hire's him or her and request a gift be purchase for their child with the promise of sending money to pay for the gift. They promise to send anywhere from $100 - $400 for the sitter to make the purchase and actually mail money orders for much larger amounts. Once the sitter contacts their new employer about the excess money, he or she typically will tell the sitter to deposit the extra money ,but send the original amounts requested. These money orders are fake, and anyone that deposits them and send their own money to fulfill the original request will soon feel the full effect of the scam. They will be charged by the bank for the deficiency balance and be charged several fee's. Watch out for this scam.
USPS Fake Email Scam
This scam involves emails being sent to consumers claiming that the USPS was unable to deliver a package and an option to download a confirmation slip and bring it in the local post office. Once the download button is pushed, a virus, which steals personal data, is downloaded to the users computer. Watch your email inbox's for this scam.