______________Friday, June 28, 2002

What can you do about your debts? How do you get your spending under control? You should keep two basic facts in mind:

1) you are "in debt" because you spent more than you earned, and

2) you can pay off your debts only by spending less than you earn and paying back what you borrowed or owe.

There are no magic, quick solutions. A rich uncle might suddenly and conveniently die and leave you an estate. But don’t count on it. From whatever combination of causes – medical, emergency, job loss, free spending, or anything else – you must pay off your debts or accept bankruptcy. But before you decide to pay off your debts yourself, ask for outside help, or file a bankruptcy petition, do take time to analyze exactly where you now stand financially. You do this by assembling two simple and time-tested tools: A personal balance sheet, and a spending plan. Working through the exercise of even one developing of those tools will reveal facts about your family’s financial habits that may surprise and scare you, but as the saying goes… "A problem well stated is a problem half solved."

Suggested Reading_____The Legal Side