Doug Stephens, MBA

Doug Stephens, Dallas Financial Counselor, helps beat credit card debt. Some of his clients are deeply in debt and discouraged, yet he insists, “Don’t give up!”

Many new clients come to me so deeply in debt that they feel their situation is hopeless. Some of these people are frozen into inaction, others may be glumly considering bankruptcy. The truth is that no matter how bad your financial picture is, you must never  just give up. It is absolutely imperative that you actively attempt to improve your own finances. If you throw in the towel, your future will be dictated by strangers.

Let me give you an example. Quite often people come to me and say that they do not have money for food or rent.  When I ask if they are current on credit card payments they answer yes. Does this strike you as a little odd? Shouldn’t food and shelter for your children be a higher priority than paying back unsecured debt? The answer is that of course it is. Taking action to improve your situation involves setting spending priorities. You are not much good to your creditors if you and your children are on the street or without food. This process is known as building a fortress around your living expenses.

Another situation that I frequently encounter involves college loans. Some clients come to me with credit card debt and gigantic balances on school loans. In certain instances the amount owed on educational loans is equal to three or more years of this person’s take home pay. What do we do? Do we give up? No. No. No. For this client it is extremely important that they pay down school loans. This is a particularly toxic form of debt that usually is not forgiven even in bankruptcy. Paying down school loans can be even more important than paying off credit cards. Yes, Yes, I realize that college loans sometimes carry fairly low interest rates. My point here is that paying these loans off must be a priority or you may have them forever.

Sometimes I counsel small businesses that are in trouble or even failing. My advice to these clients is just the same. That is, get out there and take steps to improve your own finances. Many times even if a business fails, an owner can reach settlements with creditors or reduce the adverse impact on the owner’s personal financial situation. This won’t happen if these business owners quit trying.

In my experience, every one’s finances can be improved with a little planning and effort. Don’t let others decide your fate because you feel it is hopeless. You may be surprised at how much progress you can make with just a little effort. Everyone can take actions that will improve their lives.

Doug Stephens, MBA, is a Dave Ramsey Financial Counselor specializing in personal and small business finance. He helps clients pay down debt and become debt free in Dallas and Ft. Worth. Doug has over 30 years experience in finance, investments and real estate investment.

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