The Brutal Cost of High Debt

Some debt is good.

"Good" debt - things like home loans, college loans, business loans, or even a loan for an automobile - if managed wisely - - can all be considered good debt.

On the other hand, paying more than you can afford for a home or a car; or racking up big-time credit card debt on things you could live without are all signs of bad debt.

And make no mistake, eliminating bad debt is job one if you want to create wealth by investing in real estate, the stock market, or other wealth creating opportunities that you will learn in this guide.

The sad fact is if you don't have the money to invest in the first place, then you can never attain real wealth.

The good news is that Blue Financial is here to help. Primarily through our customized loan programs, but also through the delivery of this book on managing debt, to you our valued customer.

After all, we know that your journey to financial security starts with a road map - specifically a road map that will give you a good idea where you are financially and where you're headed.

The bad news is that, if you are like many people in the Unites States, you may be up to your ears in debt.

In fact, US consumer debt has reached staggering levels after more than doubling over the past 10 years. According to recent figures from the Federal Reserve Board, consumer debt hit $1.98 trillion in 2003, up from $1.5 trillion in 2000. This figure, representing credit card and car loan debt, but excluding mortgages, translates into approximately $18,700 per US household.

Outstanding consumer credit, including mortgage and other debt, reached $9.3 trillion in 2003, representing an increase from $7 trillion in January 2000. The total credit card debt alone stands at $735 billion, with the household card debt of those who carry balances estimated to average $12,000.

According to CNN Money, consumer spending accounts for some 70 percent of the U.S. gross domestic product. "So the world economy is leveraged to the U.S. consumer. And the U.S. consumer is leveraged to the hilt," states the CNN web site.

When you're talking about tackling and managing your money, the first thing you're really talking about is avoiding lifestyle-crippling debt.

A good analogy comes from the movie "Apollo 13" with Tom Hanks, Kevin Bacon, and Ed Harris. All, very fine actors. But it is Harris who has the best line in the film. Harris-as the NASA commander- is faced with a potential catastrophe up in space with a banged-up space capsule that might not survive re-entry into the earth's atmosphere. Harris is the guy who has to solve the problem and bring the astronauts' home safely. Turning to his team, Harris gives them their marching orders and says point-blank "remember, failure is not an option". Failure is not an option when it comes to your financial future.

Let's look at reality. The more debt you accumulate (and don't pay off) the smaller the mortgage you're likely to get when you buy a home - even though you already own one. Or, the smaller the loan you'll get to buy a new car. What about your career? Many companies now rely on credit reports to hone in on your character when you're applying for a job. If they see a heavy debt load, that's a big red flag. Hiring managers may reason that if you're not reliable enough to pay your debts, you're not reliable enough to work for them.

Face it. Bad Debt can get very expensive after a failed loan payment effort and the ensuing nasty credit rating you'll get. That will impact everything that happens to you financially in life, from having to buy a smaller home - or heaven forbid, have to rent one because you don't qualify for a mortgage - to the amount of money you'll be able to put away for retirement. It won't be as much if you face a mountain of loan debt, meaning you could be spending your golden years working under the Golden Arches to make ends meet.

The Art of Digging Out

Okay, so the amount of consumer debt facing Americans is pervasive, if not problematic.

So what's to be done about it? In this guide, we'll demonstrate the best ways to lose bad debt - fast and as painlessly as possible.

We'll show you - step-by-step - how to manage debt; how to build a budget; how to put down those onerous credit cards for good; how to create a system to manage your finances; and how to begin building a solid financial foundation that will allow you to invest money in real estate - one of the places where real wealth is earned.

After finishing "The Blue Financial Guide To Eliminating Bad Debt For Good", you will walk away with the tools and talent to radically change the way you look at your personal finances, and to view loan management in revolutionary new ways.

More importantly, you will walk away with the tools you need to pay off your debts, quickly, affordably, and permanently, and get yourself on the road to financial freedom.

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