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In This Issue
Your money - I want it NOW! ....Right?
Stupid credit tricks - Let's play a game
What are you willing to do for success?
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This is the monthly newsletter of Sherer Financial Coaching, we hope you find it useful and entertaining. If so, please forward it to someone you know who might like to be on our mailing list.
 
I want it NOW! ........Right?
 
"I want the world, I want the whole world. I card trickwant to lock it all up in my pocket, it's my bar of chocolate. Give it to me now! 
I want the works, I want the whole works. Presents and prizes and sweets and surprises of all shapes and sizes and now!
Don't care how, I want it now! Don't care how, I want it now!
            
 
- Veruca Salt 
  "Charlie and the Chocolate factory"

Veruca Salt wanted, well.. everything and she wanted it now! Some of us can be like Veruca and come down with a case of "I want it now itis".                                                   

It's at times when we want something or think that we want something, that reason seems to fly out the window. All you can think about is that shiny new car or the house you really can't afford or the trip out with friends that you don't have the money for but you just can't bring yourself to say no. You may even find yourself in an argument with your spouse over it.
 
Would it make any sense to pay $3,777 for a JVC HD TV that could be purchased for $1,100? How about purchasing a 46" Sony LCD TV for $5,036 that retails for $2,300?
Sounds silly.. who would pay those inflated prices? People who want it now.
 
At Aaron rents, you can find these great deals and more. You can rent to own the Sony TV for $209.86/Mo. for 24 months and at the end of the term you will have paid over $5000 for a $2,300 television.
Sound silly doesn't it? Folks are doing it. Aaron's sales are up 15%.
 
In a  recent lawsuit with the state of New Jersey, Aaron's was accused of charging consumers the equivalent of 80% interest despite the state's cap of 30%. Aaron's argued that because consumers could theoretically return the item and walk away, it really wasn't charging interest, it was charging a rental fee. The Judge didn't buy it (64 - 70% of Aaron's customers buy the products) and Aaron's was forced to settle. Who would pay 80% interest? Someone who wants it now.
 
Even if you don't purchase products from a place like Aaron's, buying it now and not caring how is detrimental to your financial future.
One definition of maturity is being able to delay gratification.
 
There are a lot of folks out there who just will not delay gratification. Bankruptcy filings were up 66% the first three months of 2007.
The number one reason for filing? 63% of filers reported being over extended on credit. 
 
Time magazine reported that brain research suggests that emotion, not IQ may be the true measure of human intelligence. And the ability to delay gratification is one of the key indicators of emotional intelligence. Interestingly, it is also an indicator of future 
success. 
 
Protect your financial future, plan your purchases and save for them. You'll be less stressed when you're not thinking about making the next payment on an item you're using, and you'll live a happier life like the Oompa-Loompa-doopity-doo!
    
 
 
 
 
Stop the Madness!
 
card trickIncreased consumer fees, questionable finance charges and disclosure practices. Those are just some of the reasons that Senator Carl Levin has convened special hearings to look into the practices of the lending industry.
 
Says the Consumer Federation of America, "The next step is for Congress to stop credit card issuers from charging unjustifiable fees and outrageous interest  rates that push consumers to the financial brink."
 
According to a 2006 report, by the US Governmental Accounting Office, the six largest credit card issuers charged 35% of their card holders late fees. The report also found that current fee disclosures are difficult to understand and that issuers often fail to tell consumers the specific reasons & timing for charging late fees and "penalty" interest rates.
 
Consumer groups are urging Congress to adopt legislation that would:
 
Eliminate reckless/abusive lending by credit card companies,basing each loan on the actual ability of consumers to repay the loan particularly when college students or other young or low income consumers are involved.
 
End deceptive/unjust terms, interest rates & fees including changes in terms without the affirmative consent of the consumer.
 
End "Universal default" the practice of charging higher interest rates because of an alleged mis-step with another creditor.
 
Another step in this direction was introduced by US Reps. Mark Udall (CO) and Emmanuel Cleaver (MO) in the form of the credit card accountability, responsibility and Disclosure act of 2007 HR 1461. This bill addresses many of the same issues already mentioned.
 
Of course, the credit card industry will not just stand by and watch their huge profits disappear. They'll be spending huge amounts of money to lobby congress to fight this legislation.  (Just like they paid for the new bankruptcy law.)
 
So what will it take to deal with these deceptive practices that consume time and money?  Although it is admirable that our representatives are pushing in the right direction, I certainly won't stand around waiting for a government that pays $900 for a hammer to help me with my financial problems.
 
We are absolutely going to have to accept responsibility for our financial actions. If everybody went back to the ways our grandparents managed money, the banks wouldn't have the opportunities that they do. If you don't use credit cards, how much time will you spend worrying about interest rates, universal default or frogs falling from the sky? Well, OK you might spend a moment worrying about the frogs...
 
 
 
Information on legislation from Consumer Action.
Going on a journey? Don't go alone, take a buddy.... a grumble buddy.
 

winning business guyFor most of us, when we decided to become debt free, we embarked on a journey. For some of us it will be a long journey. We may meander around a bit, wandering through dark, forboding forests or harsh deserts. Maybe your journey is the business you just started. Either way, it can get tiresome and lonely, so don't go alone, take a grumble buddy.

What's a grumble buddy? Author Romanus Wolter says a grumble buddy is someone you trust, who will agree to listen to you when you need to air your frustrations.
 
Romanus suggests one major rule when it comes to selecting a grumble buddy.
Avoid selecting family or close friends as your grumble buddy. Why? Because your family or very close friends care about you and don't want to see you hurt or upset.
 
If you're trying to accomplish any worthwhile goal, you're bound to run into snags that get you upset or frustrated. Your family or close friends, while meaning well, may give you advice to make you feel better, instead of helping you solve the problem.
 
For instance, you're trying to become debt free and the new clodhopper 2000 comes out. The 2000 is the one you've been waiting for, and there it is... all shiny on the showroom floor. It's got a certificate of authenticity and comes with a velvet portrait of Elvis. You have to have it!
You call your best friend Bert, your grumble buddy and explain your dilemma. Burt can't stand to see you in obvious anguish, so he suggests you buy the Clodhopper first and then start on your debt-kicking trip.
Houston, we have a problem.
Burt did not help you, he made the problem worse by trying to make you feel better.
 
The grumble buddy has but one job. To listen and then respond with "That's nice, what are you going to do about it?"
 
So our previous scenario would have gone like this..
You : "Burt... my Clodhopper 1500 is broken...and the new model just went on sale, I want to be debt free...but I just saw the 2000 in the window...I don't think I can resist!"    
 
Burt: "That's nice, so what are you going to do about it?"
 
You: "Well... I don't know.. they're offering 150 years same as cash .... But I don't want to be in debt anymore!"
 
Burt: "What's wrong with your 1500, I thought I saw you using it yesterday?" 
 
You: "Well...yeah..technically it works...but the multi-colored Clodhopper sticker fell off!"
 
Burt: "Look, do ya wanna be debt free or don't ya?" 
 
You: "Yes! Absolutely!"
 
Burt: "Then go glue the multi-colored sticker back on and hop some clods with the 1500!"

You: Thanks Burt! You're the best grumble buddy ever!"
 
 
"You have brains in your head.
 You have feet in your shoes.
 You can steer yourself any direction you choose."
 
- Dr. Suess
 
 

 
     
 


 

We'd like to hear from you!
 
We'd like to know how you're doing on your journey to becoming debt free. Drop us a line and let us know! We'll include it in upcoming newsletters to encourage others!
 
Have a question? Send it to us and we'll answer it in an upcoming issue of the newsletter.
 
 
 
Events
If you enjoyed our last "Dumping Debt and Building Wealth class, tell your friends! We will be running another class at Northampton Community College in August. The class will meet the first two Thursdays in August from 7 - 9 PM. For more information contact Northampton Community College or click here. 
 
 
Whatever your goal, strive to be great, then help others!                                   
 
Sincerely,
 

Eric Sherer
Sherer Financial Coaching
 
 
Phone: 610-570-0948
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We offer a free 30 minute consultation. We'll discuss your specific situation and tell you how we can help you find the path to financial freedom!
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Sherer Financial Coaching - 610-570-0948