Community Magazine January 2012

Be Thankful For... Your Debt ? For a homeless person, being in debt is better than the alternative. And with so many people out of work, struggling financially and falling into debt, that kind of perspective can be very valuable. Of course usually, when people fall on hard times, it’s hard to maintain a positive outlook and be thankful. But it is possible, and it’s worth the effort. Below, I list a few case scenarios that you may relate to and learn to be thankful for. Restructure and Reduce Your Debt You own two homes with two mortgages and two equity lines of credit. Your unsecured (credit card) debt is a staggering $200,000. You have a legitimate crisis on your hands, and though you have friends or relatives who have the financial recourses to help, it’s not enough to pay off your entire debt. Here is your chance to approach the banks. In exchange for a lump sum payment you will borrow from your relative, the banks may be willing to reduce your monthly mortgage payments, reduce the balances on your equity lines of credit and negotiate a settlement plan for all of your unsecured debt. Be thankful for the opportunity to cut your overall debt by using a legitimate method created by the banks. Gain new perspectives As a professional debt management consultant, I have been privileged to work with many intelligent clients who teach me many life lessons as we work together to solve their debt hardships. Knowledge is power, and the more knowledge and experience you have with your finances, the easier it will be to make better decisions going forward. Be thankful for an educational experience, through which you became a wiser individual. Get a fresh start When restructuring is not an option, sometimes bankruptcy is a good choice. For those who are candidates for bankruptcy, it can be a great opportunity to start with a clean slate. Every week I meet with people in financial distress. They come into my office feeling hopeless and at the end of their rope. Almost every time, they leave my office feeling hopeful. I provide materials with information on bankruptcy laws in the United States, showing how the system offers the possibility of a fresh start. I also point out that people considering bankruptcy can reach out to the thousands of members of the National Association of Consumer Bankruptcy Attorneys (www. nacba.org ), located in almost every town in the nation, whose job it is to provide advice and assistance to those in need. Be thankful that we have a system that provides help and hope to so many people every day. Use your money and credit wisely. Once you have finally taken the necessary steps to get out of trouble and are on your way to rebuilding your finances and credit, your experience and new spending habits will serve you going forward. Be thankful you don’t have a wallet full of credit cards that will get you right back into debt. Count your blessings. Most of all, if your hardship in life was limited to finances, consider yourself lucky. Think of all the many people around you whom you love and who love you, and be thankful for your health. With that overall perspective, debt will seem like just a small thorn in a magnificent rose bush. Be thankful for all the blessings you have been given. NORMAN BALASSIANO, ANGELS OF DEBT M eeting with clients over the years, I have come to realize that it takes a certain level of intelligence – and even blessing – to accumulate a large debt. For example, I’m sure a homeless person would be thankful if he were living in a warm cozy house but couldn’t keep up with the mortgage payments, wearing clean comfortable clothing but was three months late on his Macys bill, and driving a clunker that maxed out his Sunoco gas card every time he filled up a full tank. 56 Community magazine