HOW TO
GET OUT OF DEBT
I know I "harp
on" about this a lot but it is very important. Your
range of betting activities will be much more enjoyable
if you are not punting using money from credit cards. And
your decision making process will not be tarnished with
the extra pressure that naturally comes with gambling with
borrowed money.
For starters the odds of success
are much longer if you are battling the "natural odds"
against you in racing AND trying to fight credit card charges
of 18% plus that you will incur if you are trying to fund
your punting "bank" from a credit card. The
odds against success then are just way too high to overcome
on a long term and sustainable basis. If they
weren't everybody would be doing it.
I still shudder when I think
of the night I was watching a nightly "current affairs"
show on TV a few years ago and a financial 'expert"
was advising people to borrow money from the banks to invest
in the share market - for goodness sakes( !!!)
So - how do you get
out of debt?
The very first practical step
you should take is to get your spending under control. You
need to stop accumulating additional debt.
Many credit counselors recommend physically cutting up your
credit cards. Most people have several thousands of dollars
worth of debt and getting rid of their credit cards is a
good first step. Even if you only pay the minimum monthly
payment you are moving in the right direction.
Line up all your bills on the
kitchen table and then add the monthly minimum repayments
up to get an overall monthly minimum. You must pay this
overall minimum PLUS a hefty additional chunk every month
-- enough to make a solid dent in the outstanding balance
of at least one account. If you can't pull this off,
you'll have to make a drastic move to increase your income
or lower your expenses OR your punting bank that you use
for pleasure.
Asking for a lower
interest rate.
Grab a bill from any account
charging you more than 14% interest. Dial the toll-free
number on the bill and ask to have your rate reduced --
say, to 11%. Tell them that you'd really like to stay with
them out of customer loyalty (embellish according to your
acting skills), but that you have received offers for much-lower-rate
cards. Expect to be made very uncomfortable, but stand firm
and remember that, to them, you are both a customer and
a profit centre. You also stand to save a bundle. The more
calls you make, the more persuasive you'll become.
You MUST make more
than the minimum payment
If you have a credit card and
only pay the minimum monthly payment you’ll end up
in debt. If you paying the minimum payment only, $1000 on
your credit card can become an 11 year loan, even with
no extra purchases. If you don’t make the minimum
monthly repayment off your credit card, you’ll have
to pay extra charges and interest on top of your credit
card balance. This will be so even if you don’t use
the card for new purchases. A late payment fee will be added
for payments after the due date.
You will get much more enjoyment
from the sport of horse racing and punting if you are not
doing it with borrowed money and that I CAN guarantee. I
simply cannot give you better advice than this. And yes,
I have been there and done that. Learning from others' mistakes
is the best and, by far, cheapest education going!
