Credit Card Debt Guru, Chuck Machado, said it best and I quote him, “How much money is a FICO Score worth?” No truer question has ever been asked and especially in these difficult economic times.
During the free run days when credit and money was readily available, your credit score was a crucial aspect of your existence. Like the suits you wore and the car you drove, your credit report score was part of your persona. It defined you both as a person of high integrity and a credit worthy individual.
Now that reality has a new face, is the car you drive any more indicative of who you are than a FICO Score? We’re discovering new aspects of ourselves every day and humility may play a huge role in helping us get through this new economic frontier.
If you are struggling to stay afloat by borrowing on your future to keep investments alive and if you have mortgaged your life by robbing cash flow in order to debt service poorly preforming real estate investments, you may have a reality check due.
Most people I talk to about this subject tell me they wouldn’t dream of destroying their credit by missing payments. They aren’t programmed that way and in spite of the severe drop in values, they borrow from their balance sheet to keep the seduction alive.
I’m here to tell you that it may be a huge mistake to continue in this vain. A huge mistake to pour cash into non preforming assets as opposed to letting them go.
Get over yourself. Consider taking the credit hit and save your money. Sure, it’s like learning a foreign language, but a lot of people are bilingual. Just because you have always had great credit does not mean that you have always been a great person.
Credit doesn’t define you and your credit report is a mere indication of how you will pay your bills in the near future-whether you will default or not. It doesn’t tell the lenders that you are a good person and it doesn’t report what type of father or mother you are.
You might read those things, the qualities you aspire for, into a credit score, but if you become too attached to your report, you may in fact lose yourself in the process. How we are perceived by others starts with how we view ourselves. Has pride replace common sense? Are you so attached to what you wish to be, that you will continue to borrow at what will eventually become quite heavy costs?
Bad things happen to good people and the recent meltdown should be indicative of this truth. If you are hanging on by your fingernails just to keep the facade of a credit worthy individual, you are also a runner up for the Credit Card Poster Child. You’ve bought into some very expensive PR work promoted exclusively by lenders.
Can you take the hit on your credit report? Give up the properties and start new.? Remember that credit is not static. It changes daily and your scores can come back up in no time. In the interim, you will have saved your cash for the new you. How will you define yourself during the next financial chapter of your life?
Consider that you are not a bad person just because you made some risky investments and debt slavery shouldn’t suit you.
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