Dear Retailer: I'm Broke And Can't Help You This Year
George Boelcke CCP
December 08, 2008
Dear Retailer:
I know that youīre really counting on me to spend a lot of money in your store this Christmas season, so I thought I should give you a heads up it wonīt be happening.
The Retail Council says Iīm supposed to do my part in spending almost $500 billion this holiday season. But I have to be honest and let you know that weīre no longer on the same financial page here. You see, for my family, reality has set in. Iīm broke. There, Iīve said it out loud. Now Iīm going to start saying, "I canīt afford it" a lot!
Iīve heard it said that often an alcoholic has to hit bottom before he or she will change their behavior. Financially, thatīs pretty close to where Iīm at. My house value is way down and Iīm not even sure itīs worth more than we owe. The option of refinancing isnīt there, and that might be a blessing in a sick sort of way. Itīs also not likely I can increase my income much in the coming year, but at least I hope to have my job more than I can say for whatīll be more than 10% of the population. My credit card balances are high, way too high, and Iīm saddled with my car payment and a HELOC that seemed like a good idea at the time
Right now, Iīm surviving and not thriving. That leaves the one thing I can do, and thatīs to look in the mirror and choose to make some different financial choices some better financial choices. I can learn the lessons all the banks and brokerage houses didnīt learn: Leverage and over-borrowing donīt work forever and when the music stops itīll be very painful.
It starts with what I knew as a teenager: I can only spend the money I have and I donīt have much left over at the end of each month. In fact, right now, Iīve got a lot more month left after my money has run out, if the truth were known.
The merry go-round is over and it has stopped being fun spending all that money I donīt have. I need to, and choose to, make Christmas more about Christmas and less about, well your store and more stuff. Facing my financial reality has made me realize that all the stuff Iīve bought from you hasnīt gotten me any more happiness. In fact itīs quite the opposite. Itīs created a financial nightmare for me right now.
I know in this recession I keep hearing that we should do our part to stimulate the economy. Sorry, I did that for years and since there isnīt a bailout for my family, if it is to be itīs up to me to turn things around. Yes, this is probably the first time youīve heard anyone in the whole country say theyīre accountable for their own actions their own mess. I am.
You want me to do more of what isnīt working in my life: more shopping, more debt, more instant credit and no payments for a year. But be honest: What do you care about my higher credit card balances, longer term car loans just so I can juggle all my payments, huge heating bills and property taxes, Chinese toys I just end up throwing out, or my third refinance on an ARM from just a few years ago?
You see, I no longer trust you. Weīre not on the same page here. Your goal and single-minded focus is to get me to spend as much as possible. If you want proof, it starts right at the cash register when you force your staff to push your credit card on me so I can save 10% today. But Iīve realized that saving five bucks today is costing me hundreds of dollars of interest since I canīt possibly afford to pay off my balance.
Your ads say I can "save" 20% - but Iīm starting to realize all these savings are making me go broke. Itīs the 80% I SPEND thatīs killing me and that I canīt ever "save" when I spend. Besides, by the time I pay off the stuff Iīve bought with the "savings," Iīll have paid over double the amount on my credit card.
But right now, all I can pay is minimum payments, and sure wish I could live the words of that Rod Stewart song: "I wish that I knew what I know now, when I was younger." So if youīre going to advertise with some of those "donīt pay for 12 months," "best savings of the year" or "no-money-down" deals, Iīm more likely to throw up than show up.
I am accountable for my own actions and financially, I havenīt done a very good job. Itīs as though Iīve been at a great party and had a little, OK a lot, too much to drink, and itīs now the morning after. I am going to look after my financial needs in a healthy and constructive way. I am going to face it to replace it, instead of looking to spend my way out of it with more refinancing, another HELOC or cash advances.
The financial reality is that Iīm in trouble and in a big hole. And when youīre in a hole, the first thing to do is to stop digging!
What I want most for Christmas this year is to get my financial house in order, to be able to sleep again without worrying whether I can make my payments next week or next month. I want to be able to not jump when the phone rings wondering if itīs a collection agency. I want to look forward to getting my mail again, instead of dreading what bill is arriving today and I want to know, and not hope, that my family will still be able to afford to be in our home this time next year.
Iīm going to start to do more of what my parents did: Work hard, pay off my debts and start saving some money. I didnīt so far. Now I get to work like a dog because Iīve already lived like a king with borrowed money.
I know that youīre really counting on me to spend a lot of money in your store this Christmas season, so I thought I should give you a heads up it wonīt be happening.
The Retail Council says Iīm supposed to do my part in spending almost $500 billion this holiday season. But I have to be honest and let you know that weīre no longer on the same financial page here. You see, for my family, reality has set in. Iīm broke. There, Iīve said it out loud. Now Iīm going to start saying, "I canīt afford it" a lot!
Iīve heard it said that often an alcoholic has to hit bottom before he or she will change their behavior. Financially, thatīs pretty close to where Iīm at. My house value is way down and Iīm not even sure itīs worth more than we owe. The option of refinancing isnīt there, and that might be a blessing in a sick sort of way. Itīs also not likely I can increase my income much in the coming year, but at least I hope to have my job more than I can say for whatīll be more than 10% of the population. My credit card balances are high, way too high, and Iīm saddled with my car payment and a HELOC that seemed like a good idea at the time
Right now, Iīm surviving and not thriving. That leaves the one thing I can do, and thatīs to look in the mirror and choose to make some different financial choices some better financial choices. I can learn the lessons all the banks and brokerage houses didnīt learn: Leverage and over-borrowing donīt work forever and when the music stops itīll be very painful.
It starts with what I knew as a teenager: I can only spend the money I have and I donīt have much left over at the end of each month. In fact, right now, Iīve got a lot more month left after my money has run out, if the truth were known.
The merry go-round is over and it has stopped being fun spending all that money I donīt have. I need to, and choose to, make Christmas more about Christmas and less about, well your store and more stuff. Facing my financial reality has made me realize that all the stuff Iīve bought from you hasnīt gotten me any more happiness. In fact itīs quite the opposite. Itīs created a financial nightmare for me right now.
I know in this recession I keep hearing that we should do our part to stimulate the economy. Sorry, I did that for years and since there isnīt a bailout for my family, if it is to be itīs up to me to turn things around. Yes, this is probably the first time youīve heard anyone in the whole country say theyīre accountable for their own actions their own mess. I am.
You want me to do more of what isnīt working in my life: more shopping, more debt, more instant credit and no payments for a year. But be honest: What do you care about my higher credit card balances, longer term car loans just so I can juggle all my payments, huge heating bills and property taxes, Chinese toys I just end up throwing out, or my third refinance on an ARM from just a few years ago?
You see, I no longer trust you. Weīre not on the same page here. Your goal and single-minded focus is to get me to spend as much as possible. If you want proof, it starts right at the cash register when you force your staff to push your credit card on me so I can save 10% today. But Iīve realized that saving five bucks today is costing me hundreds of dollars of interest since I canīt possibly afford to pay off my balance.
Your ads say I can "save" 20% - but Iīm starting to realize all these savings are making me go broke. Itīs the 80% I SPEND thatīs killing me and that I canīt ever "save" when I spend. Besides, by the time I pay off the stuff Iīve bought with the "savings," Iīll have paid over double the amount on my credit card.
But right now, all I can pay is minimum payments, and sure wish I could live the words of that Rod Stewart song: "I wish that I knew what I know now, when I was younger." So if youīre going to advertise with some of those "donīt pay for 12 months," "best savings of the year" or "no-money-down" deals, Iīm more likely to throw up than show up.
I am accountable for my own actions and financially, I havenīt done a very good job. Itīs as though Iīve been at a great party and had a little, OK a lot, too much to drink, and itīs now the morning after. I am going to look after my financial needs in a healthy and constructive way. I am going to face it to replace it, instead of looking to spend my way out of it with more refinancing, another HELOC or cash advances.
The financial reality is that Iīm in trouble and in a big hole. And when youīre in a hole, the first thing to do is to stop digging!
What I want most for Christmas this year is to get my financial house in order, to be able to sleep again without worrying whether I can make my payments next week or next month. I want to be able to not jump when the phone rings wondering if itīs a collection agency. I want to look forward to getting my mail again, instead of dreading what bill is arriving today and I want to know, and not hope, that my family will still be able to afford to be in our home this time next year.
Iīm going to start to do more of what my parents did: Work hard, pay off my debts and start saving some money. I didnīt so far. Now I get to work like a dog because Iīve already lived like a king with borrowed money.
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