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Can the Answer be that Simple?

The new book, “Lessons from the Depression, Eliminating Debt the Old-Fashioned Way” by author and veteran financial advisor Darlene Gudrie Butts, has been released just in time to help the millions of families that are suffering from the economic crisis. The book is creating a buzz because of its unique story-telling platform with practical lessons at the end of each chapter. It is easy for anyone to follow the simple steps to financial freedom with out having to maintain charts, statistics or graphs.

The story begins with Tim and Tricia Smith buried in debt, after a job layoff and real estate troubles. Their only hope to avoid bankruptcy lies in a loan from Tricia’s estranged grandmother. Instead of lending the money, Grammy Ti draws on the strong principles used in the Great Depression to teach her granddaughter how to:

•   Beat the Credit Card Bullies
•   Break Old Spending Habits
•   Boost Income to Balance the Budget
•   Balance Savings and Debt Reduction
•   Make Money Doing What you Love
•   Cost- Cutting and Having Fun for Free

Just as we are drawn to the hopes, fears and struggles of the characters in the book, we also see that sometimes the answers to our problems can be in the simple things in life. Bankruptcy seems simple, but it’s not. It is short-term gain for long-term pain. Bankruptcy gets rid of the bills, but you will have the emotional and financial scars to deal with for a long time.

If you’ve slashed your expenses and are making as much income as possible and still can’t balance your budget, then it may be time to consider professional counseling or bankruptcy. Until then, you are going to have to work hard to get back on track, even if it means giving up many of the pleasure of life to do it. But, some of the best memories from children of the Depression were when they had no money, because not having money simplifies life. This generation knew that you don’t let life make you happy, you make a happy life with whatever you have to do it with.

What are not simple are the choices that must be made to cut expenses to provide the money needed to reduce debt and do what is best to provide for the family. The first step is to get an accurate accounting of every payment and every expense you have, big or small. This may take a month of writing down every penny that is spent to get a really accurate picture.

The next step is to start eliminating or cutting expenses. Most people believe this will only result in a few cuts, like not buying a daily coffee or unnecessary clothes for the kids for a while. Your situation may, however, require more drastic cutting, such as the luxury of a second car. There may be no room for wants, only needs and most families do not need a second car. Remember if you are bankrupt on paper and you spend more than you earn, you don’t own anything anyway, your creditors do.

We become attached to material things and we could really be missing out if we believe that our only fun can come from having these things. Play ball with your kids. Dance in the kitchen with your spouse. Watch football with your buddies. Play cards or charades. Sometimes we need to get rid of “things” to see what we are missing and the memories they provide.

For more strategies for getting and staying out of debt, “Lessons from the Depression, Eliminating Debt the Old-Fashioned Way” may be a great place to start. If you still need more help, have a debt analysis done by a financial professional who can keep you accountable and further help you reduce debt.

Tags: Debt Reduction, economic crisis, financial freedom, Great Depression

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