Personal Finance Expert Gives Commandments to “Get Thee Out of Debt”

by News Guy on August 5, 2010

Just like the government, consumers are trying to find answers to the economic crisis.  Many of these consumers are concerned about debt, more specifically how to control debt.

Laura Rowley, Yahoo! Finance personal finance guru gives key commandments to make sure they act as their own financial regulators. Her commandments include:

  • Thou shalt not live beyond thy means. Know exactly how much money comes in, how much goes out and make those numbers match up.  (Try this calculator to figure out if a second income is worth it after taxes, child care and other costs.)
  • Thou shalt set aside cash for emergencies. According to a recent study from the Financial Industry Regulatory Authority, only 49 percent of respondents reported that they had set aside funds sufficient to cover expenses for three months in case of sickness, job loss, economic downturn or other emergency.
  • Thou shalt not carry a revolving balance on thy credit card. According to the FINRA study, 51 percent of Americans have carried a balance from month to month resulting in interest charges; 29 percent made a minimum-only payment; and 23 percent were charged a fee for late payment. Thou shalt not get sucked into the debt-settlement trap.
  • Thou shalt not use a financial product – credit cards, auto loans, without searching for the best deal. The FINRA survey found 63 percent don’t shop around for credit cards, half don’t shop around for auto loans, and a third don’t shop around for mortgages.

About Laura Rowley

Laura Rowley is a journalist specializing in personal finance and values, and author of “Money & Happiness: A Guide to Living the Good Life.” Along with her Yahoo! Finance column, she blogs at www.moneyandhappiness.com/blog, and is an adjunct professor of religious studies at Seton Hall University, where she teaches Contemporary Moral Values.

Like this Article? Sign up for our Newsletter

We respect your email privacy

Leave a Comment

This blog is kept spam free by WP-SpamFree.

Previous post:

Next post: