CNN is reporting that according to the American Bankers Association, delinquencies on credit cards (and other loans) have reached an all-time high. Taking a step back, it feels good to realize that I’m not included in these statistics. It has now been a while since I’ve been financially irresponsible. Sure, I make mistakes sometimes, such as timing a transfer poorly and being slapped with an overdraft charge. But it’s good to know I have my finances in control.
I should be thinking about taking it to the next step. I have an informal budget, but it’s more of the ex post facto sort. Also, I’ve never really set financial goals because I’ve been unsure of my capabilities. On the other hand, it’s time.
I’m setting a deadline of October 31. By Halloween, I’ll have some long term goals worked out and a specific budget designed to rein in some of my excess spending. Shorter term goals will show up during November and December while planning 2006.
CNN suggests the following checks to make sure you’re not too deep into carrying credit card balances:
- You can only afford to make minimum payments on your credit card;
- You’re always short of cash;
- You’re late on important payments, such as rent or the mortgage;
- You take longer and longer to pay off your balances;
- You borrow from one lender to pay another.
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I’m with ya on this one. Every time I read these news-articles regarding impending financial doom of our credit-centric society, I breathe much easier than I used to.
With all my non-mortgage debt vanquished, things look a great deal better.
Flexo, I never would have guessed that you had any sort of “excess spending”. As far as budgeting goes, I’ve done a review of the YNAB (You Need A Budget) Excel spreadsheet budgeting system at Road to Wealth. Right now, I’m just getting it ready so that when October rolls around I can just pull the trigger and use it. Anyway, YMMV, but I like it much better than the previous incarnations of my budget.