Consumer Debt Is a No Go

Hello Super Moms!

Can you believe it's been a week since our last newsletter? Time flies when you're busy being amazing! Last week, we dove deep into the empowering concept of "Save Now Pay Later." We discussed the importance of paying ourselves first, before any bills or expenses. It was all about prioritizing our financial wellness and securing our family's future.

Before we get into the 3rd financial commandment…

This week, we're tackling another crucial commandment on our journey to financial abundance: "Consumer Debt is a No Go." Yes, you read it right! We're saying a big NO to consumer debt.

Just like a sneaky cookie can derail a diet, consumer debt can silently sneak up and hamper our journey towards financial freedom. But don't worry, together, we can overcome this challenge. So, let's roll up our sleeves, put on our superhero capes, and get ready to conquer consumer debt.

Stay tuned, Super Moms! Let's dive into a week of empowerment and financial savvy. Here's to creating happier, financially secure families together!

Understanding Consumer Debt

Consumer debt is the money you owe on credit cards, auto loans, personal loans, and other debts that aren't backed by collateral.

It's easy to accumulate, especially when those shiny new shoes or the latest smartphone are just a swipe away. But here's the kicker - the interest rates on these types of debt are often sky-high!

Why does it matter?

Well, every dollar you spend on servicing debt is a dollar not saved for your future or invested in your family's happiness.

Consumer debt can slowly eat away at your financial abundance, leaving less room for savings, investments, or even simple joys like a family vacation.

And here's how it can affect your family's happiness:

Instead of planning your next family adventure or thinking about your child's future education, you might find yourself losing sleep over mounting bills.

Remember, Super Moms, money spent on interest is money that's not working for you. It's time to take control and say a firm "No Go" to consumer debt! Let's continue our journey towards financial freedom and abundant family happiness together.

Consumer Debt vs. Non-Consumer Debt: Know the Difference

As we embark on our journey to financial freedom, it's essential to understand the difference between consumer debt and non-consumer debt.

Consumer debt, also known as personal debt, is incurred when you borrow money to purchase consumable goods or services. These are items that depreciate over time and don't generate long-term income. Consumer debt includes credit card debt, car loans, payday loans, and student loans.

On the other hand, non-consumer debt, often referred to as good debt, is used to invest in something that will increase in value or generate income over time. Examples include a mortgage on a home (which ideally appreciates in value) or a loan to start a business (which ideally generates income).

Common Types of Consumer Debt

Now that we know what consumer debt is, let's dig deeper and explore some common types of consumer debt:

1. Credit Card Debt: This is one of the most common forms of consumer debt. It accrues when you use a credit card to pay for goods or services but don't pay off your balance in full each month.

2. Auto Loans: These are loans taken out to purchase a vehicle. Since cars depreciate over time, auto loans are considered consumer debt.

3. Student Loans: Although used to fund education, which can be seen as an investment, student loans are considered consumer debt because they are used to pay for a service that has already been consumed.

4. Personal Loans: These are typically unsecured loans that aren’t backed by collateral. They can be used for various purposes like debt consolidation, medical expenses, or even vacations.

5. Payday Loans: These are short-term, high-interest loans designed to tide people over until their next paycheck. They're a form of consumer debt that can lead to a cycle of debt if not managed carefully.

Real-Life Impact of Consumer Debt

Consumer debt is like a silent, unfriendly guest at our family dinners. It might not always be visible, but its presence can be felt in every corner of our lives.

Let's meet Sarah, a single mom from Ohio. Sarah was juggling multiple roles - a full-time job, raising her two young children, and managing the household. Like many of us, she relied on credit cards for those extra expenses that seemed to pop up every month.

Over time, these small amounts added up, and before she knew it, Sarah was knee-deep in consumer debt.

The impact was far-reaching. The stress of mounting bills took a toll on her well-being. She was constantly worried, anxious, and her health started to deteriorate. According to a study by the American Public Health Association, unsecured debt can lead to stress, anxiety, depression, and even high blood pressure.

Sarah's story isn't unique. Many families find themselves in similar situations. Take the case of a family from the LendingTree study, where one-third of gift-givers believed they might take on Mother's Day debt.

This burden wasn't only carried by those earning less. Even those making $100,000 or more a year felt the pinch.

But here's the empowering part. Sarah decided to take control. Inspired by Kumiko Love, The Budget Mom who paid off $77,281 in just eight months, she began her journey towards financial freedom. And if Sarah can do it, so can we!

Stay tuned as we share practical tips and strategies to avoid falling into the consumer debt trap. Together, we can create a future of financial abundance for our families!

I am also no stranger to consumer debt…

During the pandemic, we got stuck in Vietnam. It was supposed to be just a vacation but we ended up staying there for 2 and a half years.

We wanted to stay even longer until the pandemic was over but the Vietnamese government decided to kick out all the foreigners in the country.

We were given two weeks to make all the arrangements needed to go back to our home countries.

I am from the Philippines, my partner is from Canada and our daughter is dual citizen. I can’t go to Canada. I already got denied 5x. My partner didn’t want us to be separated.

The Philippines was still closed to foreigners by that time and since we are not married, my partner can’t go with me.

But we found a loophole.

He can go if he will accompany our daughter, who is a Filipino citizen, through the Balikbayan program.

We had to get a lot of documents to make this happen. And we did manage to complete all the documents.

But still, it was in the middle of a raging pandemic.

From $50 for a roundtrip flight from Vietnam to the Philippines, it was $1000 per person for a one-way ticket. Plus, we needed to have an international insurance that can cover COVID incidents. This insurance costs us $4000. So we are now at $7000.

Now when we arrived in Singapore, where our connecting flight is at, we found out that we cannot take Philippine Airlines because that would require us to go out to another Terminal. So we have to buy another ticket from Singapore to the Philippines which was $1500 for the 3 of us. Now, we are at $8,500.

After we arrived in the Philippines, we had to quarantine. We can’t do food delivery. I didn’t know why but we couldn’t so we had to order food from the quarantine hotel. The quarantine plus food cost us around $2000. Which gave us a total of $10,500 for that travel.

And I used my credit card for all of those.

I’m still paying off all the expenses from this trip, and I am on a very strict plan to be debt-free from this in a year. July 2024.

Here are the strategies I am implementing:

1. Cash is Queen: It's simple - if you don't have it, don't spend it. Using cash instead of credit cards can help you visualize and control your spending.

2. Budgeting is Your Superpower: Create a budget that includes all your income and expenses. This will give you a clear picture of where your money is going and where you can cut back.

3. Live Within Your Means: This doesn't mean you can't enjoy life or treat yourself. It simply means being mindful of your spending and making choices that align with your financial goals.

4. Ditch the "Buy Now, Pay Later" Mentality: Instant gratification can lead to long-term financial stress. Instead, save up for big purchases and enjoy the satisfaction of buying them outright.

5. Educate Yourself: Knowledge is power, Super Moms. The more you know about personal finance, the better equipped you'll be to make smart decisions.

Starting small can lead to big changes. Perhaps this week, try using cash for all your purchases. Next week, you could start a simple budget. Remember, every step you take is a step towards financial freedom and a happier, more secure future for your family.

You've got this, Super Moms! Let's take charge of our finances and show consumer debt the door!

The Power of Financial Freedom: Unleashing Your Potential

Ladies, let's take a moment to dream together. Imagine a life free from the shackles of consumer debt. A life where you're not constantly worrying about the next credit card bill, car payment, or loan installment. This is what we call financial freedom, and it's a powerful force that can transform your life and the life of your family.

Peace of Mind

The first blessing of financial freedom is peace of mind. When you're not burdened by the weight of consumer debt, you sleep better at night knowing you're not one unexpected expense away from financial stress.

You have the serenity of knowing you're living within your means, and you're building a secure future for your family.

More Options

With financial freedom comes choice. You're no longer limited by the constraints of debt repayments.

Want to switch careers, start a business, or go back to school?

You can!

Want to buy a home, take your family on a dream vacation, or invest in your children’s future education?

You have the power to make these choices because you're not tied down by consumer debt.

Less Stress

Financial freedom significantly reduces stress. You're no longer on the hamster wheel of earning just to pay off debts. You're working and earning for you and your family's benefit, not the bank's. This reduction in stress leads to happier, healthier lives for you and your family.

And here's the most beautiful part - this isn't a pipe dream. It's a reality that's within your reach. Regardless of where you're starting from, whether you're deep in debt or just starting to build your financial future, you have the power to achieve financial freedom. We are all on this journey together, and with determination, planning, and the right strategies, we can all enjoy the peace, options, and reduced stress that come with being free from consumer debt.

So, Super Moms, let's continue on this exciting journey towards financial freedom. Because we all deserve a life free from the chains of consumer debt!

Ready, Set, Action!

 Alright, Super Moms! We've learned a lot about consumer debt today, but the most important lesson is this: You have the power to create a financially abundant future for your family.

So, let's take that first step towards financial freedom together. Start with something small, yet significant. Maybe it's making a budget for the next month, or perhaps it's cutting up that credit card that's been burning a hole in your pocket.

Remember, you are not just a mom, but a financial superhero. Each decision you make, each dollar you save, brings you one step closer to a life of abundance and peace of mind.

Starting small can lead to big changes.

 But remember, you're not alone on this journey. I'm here to help! If you're struggling with debt, I'm offering one-on-one support to create a personalized debt repayment plan and provide daily check-ins to keep you on track towards becoming debt-free.

Just reply to this email or send me a message at [email protected] if you're interested. But hurry, as I can only accommodate the first 10 moms who respond!

Make that commitment today! Choose to say goodbye to consumer debt and hello to a future where financial worries are a thing of the past.

You've got this, Super Mom! Let's conquer consumer debt and create a future full of possibilities for our families. Because the best gift we can give our children is a secure, joyful future. Let's take that step now!