The American Dollar
One industrious American family's focus on a financial goal of freedom. Through worldly personal finance education, here is our story.
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Our Story: Both my wife and I are 27 years old and have gone through financial hell and back. Now we are on track to financial freedom, however we are not financial advisors or professionals, just everyday people. Share our journey from a negative networth and email us if you have questions or comments! :)


Monday, July 11, 2005

Here are two more signs to steer clear of if you want to stay debt free…

People do not worry about debt until it is staring them in the face. Most people do not have any idea as to the total amount of debt that they owe, or which creditor is the main culprit for their financial demise.

The first sign to debt problems is getting into the habit of paying for groceries with a credit card. All food shopping should be paid for in cash and never on credit. The only time grocery shopping should be paid for with a credit card is when rewards are earned and the total balance of the statement is paid at the end of the month.

The second sign to debt edging nearer and nearer is when an individual cannot afford to pay off at least twice the minimum payment each month. Paying only the minimum amount will not keep creditors at bay, as the balance of what has accrued is never reduced, and payments only satisfy the interest on the account.

Here are two more signs to steer clear of if you want to stay debt free…

The third sign to debt demise is when eyes light up at the fact that a credit card company have increased the credit on an account. This should not be seen as a gift from the creditors but as a crafty way to make a customer spend twice as much than they are used to. Remember, creditors do not care if someone ruins their credit rating.

The fourth and final sign is when bills are ignored in the hope that they will go away. Even if there are only a few pounds outstanding on an account, it still has to be paid or black marks will appear on your credit file which will jeopardise chances of any future credit. is here!

Emergency Fund
2007 Roth Contributions
$8,000 Total

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