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Powering Down Debt

Don’t let what happened to me, happen to you. Getting my finances in order required reading my credit card statements and repayment agreement closely. I discovered in the event of default, my credit card company had the right to increase the interest rate (which they had done). I thought default meant I must have submitted payment late or missed it completely (which I knew I didn’t do). Upon closer inspection, I learned that one of the conditions of default was to exceed the monthly limit. I had a $5,000 credit limit, spent $6,000 one month, paid it in full the following month, but I was still considered in default on the entire $6,000. Don’t let credit card companies trap you.

Along with the lowest savings rate in the industrial world, the United States had the highest consumption rate. We save the least and spend the most. Debt is the vehicle by which greater consumption is made possible. As the ratio of debt goes up, society adapts and says it’s OK. For example, as homes go up in value, many people refinance their homes to afford vacations, pay off credit cards, etc. This leads to big problems if you first don’t learn how to curb your spending. I know many wealthy people that have played this game to their detriment. Instead of doing something wise with the money, too many people pull equity out of the house and use it to spend more, increasing debt. The stock market and real estate market don’t solve the problem because we don’t pause long enough to reap the benefit that’s inherent in those booms—we just spend more and continue the cycle.

The power of the charge card—how do you compare to the average American?
• The average American has 11 credit cards, which is up from seven in 1989.
• Credit cards in circulation have increased 34 percent.
• Credit card transactions have gone up 55 percent.
• The overall value of credit card transactions has increased 98 percent. We doubled what we spent with credit cards between 1988 and 1994

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A 1973 graduate of Pratt Institute, Barry began his career illustrating books, magazines and ads. His client list included New York Magazine, The New York Times, Random House, Ziff Davis Publications, American Express Publishing, IBM and other fortune 500 companies. Business: Barry formed a graphic design company in the early ‘80’s called LOOK MA NOH HANDS that created graphic solutions for art galleries and small businesses. Using his art and business skills, he segued successfully into film and video production. Working for many top New York spot shops he developed a reputation in the industry as an award winning producer. He then formed, NOH HANDS PRODUCTIONS where he served as both director and executive producer. In the late 90's, adapting to industry challenges, Barry changed his mode again by working directly with clients, in this capacity he had to often work as copywriter, art director, and business manager. He has volunteered for dozens of pro-bono projects including his two favorite charitable organizations: The 52nd Street Project and New York City Relief, where he served on the Presidents Council. Barry is a member of the Directors Guild of America, serving two terms on the AD/UPM Council. His work has won the Capels Award for Excellence (1980); the New York Festivals Gold Medal (1987), Silver Medal (1986), Finalist Award (1988, 1993, 1994); the Clio Award (1983); the BUMP Gold Medallion (1989); CAM AWARD (1992) and an EMMY (1982) for Network TV Promotion. Why American Financial Review? While Barry was successful with his business, many bumps in the road occurred. Now, with the help of many noted authors in the financial field, his intent for American Financial Review is to provide a portal to the wealth and business building programs that exist in American, saving you from those same costly road bumps. While there may be a plethora of them, American Financial Review intends to do its due diligence uncovering the programs that really deliver what they promise, and give you the gritty details. Find Out More: www.americanfinancialreview.org

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