On this, the sixth day of my series, I believe that it is time for a more serious issue.  And it can severely affect your ability to purchase a home, a boat, a car, and everything else.  Todays safety tip is...stop buying so much stuff!  At least if all you are doing is using your credit cards to do so without an immediate ability to pay the card off.

We have all heard the statistics about Christmas bills taking six months on average to pay.  With six months worth of interest (in the best case scenario), you will likely pay an additional $1000.00 dollars in interest!  That could have gone to your closing costs, your down payment, home repairs, an emergency fund, retirement account, tax deferred college savings for your kidlets and so many other places.

While I am sure that this message is not popular, I am sure that we all want this housing market to stabilize.  In doing so, we mortgage professionals need to be able to get loans closed.  If your credit balance is too high on your credit cards (revolving accounts)...guess what??!!  Low credit scores will come around to you.  Low credit scores mean less available programs.  Often with higher down payments required.  If you have not saved any money...how do you hope to have a down payment ready?

Do you see the vicious cycle starting?  It goes from bad to worse if you do not check yourself on your purchases.  So, below are my common sensical tips to use for this last remaining week or so.

• Use cash.  If you have the cash to spend, go ahead and spend it.  You will make smarter purchases and buy things that you really like or need.  Watching the money leave our hands never to return brings us a deeper realization and cuts back the rationalization!
• Stop lying to yourself.  While it is true that some people do pay their balance off in full each month, most do not.  That is why the credit card businesses are alive and well.  Too many people say they will use their card so that they can get airline miles or cash rewards or whatever.  If you do not pay your card off, though, you will not make it better, you will make it worse.  Your cash reward would not even pay the month or two of interest.  Nor would your airline ticket cost you as much as your minimum monthly payment or your interest fees!
• Realtors, advice your shopping clients not to overspend.  It may affect their ability to buy a home and your ability to make some money!  Refi's are not even "easy" to do anymore, so that is not much of an option unless a client has a ton of equity!
• Do your best not to get too wrapped up emotionally in the season.  Marketing ploys make you think that love and giving is synonymous.  It is not.  My favorite gifts are not always the most expensive and (hopefully) if the truth be told, neither are yours.

While I am all about giving, sharing, and loving Christmas.  I want to make sure that I am posturing myself for success in 2008.  Similarly, I am hoping for the best 2008 for you too!  If you have any questions on the subject, please feel free to visit me at www.hillvalleyfinancial.com/saraheubanks, and we can talk.  Wishing you and yours the best Christmas and New Year to date!

If you have not read the previous five posts in this series, you may do so here: 

Twelve Days of Safety ~~ On the First Day

Twelve Days of Safety ~~ On the Second Day

Twelve Days of Safety ~~ On the Third Day

Twelve Days of Safety ~~ On the Fourth Day

Twelve Days of Safety ~~ On the Fifth Day                                                                                            

I will be watching, reading and writing. And waiting to help you get the financing you both need and deserve.