The Personal Finance Lessons to
experts say that the financial conditions that forced the 4th largest city in
the U.S to go bankrupt may be happening at the grassroots level also. In the recent past Detroit has filed for
bankruptcy protection. It has approximately $11.5 billion of unsecured accounts
with outstanding loan balances.
repay such a staggering debt, Detroit may have to burn a big financial hole in
its pocket. It may also happen that the city may not be able to pay for the
maintenance of its basic facilities, as a result of it. If you find the
scenario similar with that of your current personal financial health, then you
need to start following the principles of debt management before
it is too late to recover.
like Detroit, you too must pay for your basic maintenance. Similar to Detroit
having to manage and maintain its facility, individuals must likewise maintain
a prudent and fiscally doable plan to afford the cost of home rental,
utilities, groceries, insurance costs, among others encumbrances they bear.
relies on the economy’s performance while you, on your hard work. The state
government has to pay salaries as well as pensions, besides all the other types
of social welfare benefits to its people and the same goes for you. This is
because you are responsible for your personal safety and prosperity, and your
immediate family members.
like Detroit, you too may have to grapple with overwhelming outstanding loan /
debt balances. As of now, Detroit is liable to pay interest on its $11.5
billion debt. Similarly, you must pay for your student loans, car loans,
mortgage loans, credit cards, and the likes.
much like Detroit, you too need to evaluate your own spending behavior
carefully as a pragmatic solution to resolve your financial problems/ concerns.
This will help you to come up with a prudent money management strategy to fix
any sort of debt related issues without delay.
However, in Detroit’s case its debt management plan would be to cut down
pensions or liquidate some of the state’s assets.
you, it is imperative for you to cut back / reduce your expenses or sell off
some items that are gathering dust in your closet to increase the amount of
disposable cash in your hand.
Savion Sage. He is a financial
writer associated with Oak
View Law Group, a debt reduction service based
in Citrus Heights, California 95610.