Tis the Season for spending
It's winding down to the end of the year and as I look out my office window to see the masses traveling to and fro in the wintery weather, I think about all of the credit cards being swiped to pay for all of the Christmas goodies that will be underneath the tree. I think about little Bobby's new Transformer and little Timmy's new XBOX both of which are wrapped neatly under the tree, accumulating interest at a rate of 22.9% annually. I can see the sparkle in little Abby's eyes as she unwraps the new Barbie Corvette never knowing that it will take her Mommy and Daddy 14 years to pay off that pink plastic car of her dreams.
Okay, okay..... I am apologize for the above but in all honesty, this is a big deal. It's amazing to think about all of the money being wasted on financing such trivial things. Yes, I feel it is important to make every Christmas special for every boy and girl, but at what cost? January and February are BIG months for refinancing in this country because of the credit card debt accumulated by consumers. Sure, I do offer debt consolidation loans but what is going to happen when I help a homeowner pay off all of his or her debt and they have 3, 5, or 8 credit cards with $0 balances on them? They just added 10 more years to their mortgage, $85,000 in mortgage interest, and now they have a bunch of available credit for next Christmas.
Folks, be careful this Christmas season because interest rates are on the rise. Try to pay cash for your purchases and avoid credit spending if you can. Before you know it, next Christmas will be here and your mortgage man will come a calling.
I hope everyone reading this has a safe and happy holiday. Merry Christmas, Happy Holidays, and Happy New Year!
Posted by Jason Lash at 10:21 AM
0 comments
