A BUMP IN THE ROAD TO RUIN

"Somebody help me." You've probably seen the television commercial with that plea by the guy who had it all - wife and kids, huge house, beautiful lawn, riding lawnmower, sumptuous swimming pool, large SUV and big boat - but was "in debt up to my eyeballs."

I'm sure you've seen the commercial which says, "Lower your payments an average of $400 a month." Or the one which says, "Consolidate your debts into one low monthly payment.." These commercials are ads for the refinancing of homes or for a debt consolidation loan. Unless the debtor changes his spending ways, these solutions are merely a bump in the road to ruin.

The major cause of debt is that good old American invention - the credit card. If you don't have cash on hand, buy it with a credit card. You don't have to be uneducated to run up huge debts. Studies have shown that college students, who run up substantial debts with credit cards, will continue with their undisciplined spending habits once they have graduated and entered the real world.

The ideal financial situation is the one in which a consumer is relatively debt free. That requires a lot of self-discipline - one should never spend beyond one's means. The most glaring example of undisciplined spending is our federal government, with Congress and the Administration running up a humongous deficit by breaking every principle of fiscal responsibility.

Except for a mortgage and for automobile payments, one's purchases should never exceed one's ability to pay them off within 30 days. Debt can lead to a lot of problems. It is the leading cause for our high divorce rate. When good people become desperate debtors, they may turn into thieves and robbers.

Keeping up with the Joneses is one of Anerica's most serious financial diseases. That, and the easy availability of credit cards, is a prescription for finacial disaster. I know of several people who kept getting pre-approved credit card applications long after they went through bankruptcy. I know of dead beats who are being hounded by bill collectors, including collectors for credit card companies, that keep geting those same credit card applications.

Refinancing a home or obtaining a debt consolidation loan simply enables the debtor to keep on spending like there's no tomorrow. The only way to get out of debt is to change one's lifestyle. No more unnecessary purchases. No impulse buying. No more going out to eat every night. No more cruises or other costly vacations if one cannot afford them. No boats or other recrecatioal vehicles. It means driving a compact car instead of a luxury vehicle.

Getting out from under debt also requires one to cancel and destroy each and every credit card once they have been paid off. Home refinancing and debt consolidation, by themselves, are only temporary fixes - a bump that might slow one down for a short while, before it's full speed ahead again on the road to ruin.