I'm Just Sayin'

Sometimes in life, there are unforeseen circumstances that come out of nowhere. Let us not forget the infamous Enron scandal of 2002, where thousands of employees lost their jobs and benefits as a result of the corporate giant filing bankruptcy. I am sure many Enron employees woke up that historic morning prepared for a normal day at the office and were devastated to discover they were without a job.

Many “dispensable” workers were escorted from the building by security while others were fired at home via phone messages. Perhaps one of them had just purchased a new home a month prior, or purchased a new car the weekend before, thinking that they could easily foot the bills with their safe and sound Enron salary. Then suddenly, without warning, they are fired and given a measly $4,500 severance package, devoid of any consideration of their many years of service to the company.

Undoubtedly, some of these former Enron employees were forced to start a new job earning a pay rate that did not match the salary it took years for them to build at Enron. This lower pay rate probably didn’t make ends meet in the lifestyle they had grown accustomed to. Worst of all, many former Enron employees, who had paid their bills on time for years, may have found themselves hastily pulled into the downward spiral of debt.

The downward spiral starts with being forced to pay only the minimum amount due on credit card bills to assure that there is enough money to pay the most important bills, like the mortgage and the car note. Next, the minimum payments are paid late, and then they are not paid at all. Soon the car note falls behind because the mortgage has to be paid. Before they knew it, the phone was ringing off the hook from angry debt collectors who have never called before, complaining about the late bills.

Okay, in the beginning  creditors are considerate and courteous, especially if there has been a good payment history. However, it won’t take long for those pleasant creditors to become impatient and cruel. Suddenly, you are labeled as one of those "deadbeat bill dodgers," who has no interest in paying down the accumulated debt and is swiftly turned over to their collections department.

Millions of honest people get trapped in circumstances that are beyond their control due to unemployment, divorce, or illness. There should be some type of mercy and compassion for them.  Nearly 90 percent of bankruptcies occur because of illness, lost job, or divorce and are not the result of haphazard credit use. This calculates into thousands of honest folks who, despite many years of paying their bills on time, find themselves thrust in the sea of endless debt. And despite the fact that they would pay their bills in a heartbeat (if they had the money), they are hounded and harassed by debt collectors like the deadbeats they are not. I'm just sayin'.  (Excerpts taken from The Broke Man's Survival Guide.)

This Blog's For You...

When you are broke-I’m talking car note, rent, electricity and gas bills are due and I ain’t got no’ money broke--, the last things you want to hear about are saving plans, financial portfolios, or investment strategies.  Debt collectors are calling. Disconnection notices are mounting. The Fridge is empty.  You want to hear about how they are going to make it another day without the red tape and politically correct mumbo jumbo that comes along with the territory.  Well, this blog is for you.

Let me warn you up front: If you are expecting a penny pinching, cost-cutting, credit repair blog--look elsewhere. There are enough debt rehab blogs floating around the Internet that detail ways to get out of debt and improve your credit score.  Unfortunately, a lot of us are struggling too bad financially to use their advice.     Sure, the typical financial advice blogs provide great information for people who have made a few mistakes with spending habits and just need to tweak their budget,  but what about the people who are seriously and desperately broke? What do they do in the meantime?

 

As the program director of a social service organization, I have worked with people who were employed but were still forced to sleep in an emergency shelter because they were paid a minimum wage--not a living wage and could not afford suitable housing. I have worked with families who lost it all when their $50,000 a year salary vanished after their employer went out of business and  faced foreclosure because they were unable to secure a another job that paid a comparable salary.  I doubt they want to hear a tête-à-tête about Roth IRA's and FICO scores!  No, they want to hear about how to keep a roof over their head and food on the table!

 

Therefore, The Broke Man’s Blog  will strive to address the tough issues  by offering unconventional, yet real life options to consider when you literally don’t have two nickels to rub together. Real Talk.