The last week has seen the over indulgence of millions of Americans come to a crashing halt.  During the early 2000’s we borrowed on mortgages for speculation, we borrowed to buy just a little bit more home, sometimes a lot more home, most of the time, with too much mortgage.

We bought as if there were no tomorrow, we (Americans) bought as if they were punch drunk.  For the last year and a half to two years the hangover has been building, with small cracks and fissures in the financial markets.  The hangover effects were beginning to be felt but the full blown effects were still to be felt.  Last week our hangover blew out… and people around the world felt it… Oh, and the government in their infinite wisdom is trying to bail it out.  Anytime the government steps into anything other than national defense you know that it can’t end well.  Should be a “fun” ride for the next several years as the financial aftermath reverberates around the world and into your wallet!

So, how does this impact you?  Well, for some of you, the pain is already felt as your home goes into foreclosure or has already been foreclosed on.  For others, your financial woes have been building and are about to get worse.  FInally, there are those of you who will experience little if any pain… because you were prepared.  You got out of debt… You made some smart money choices while others were buying like drunken sailors.  If you’re in the last group you have nothing to worry about.

How about the rest of you?  There is hope, it’s not going to be easy.  It may take you several years to get back on your feet, but you CAN do it!  Here’s what you need to do…

First, realize that everyone has made mistakes with money, you’re not the first and you won’t be the last. Second, decide that you are done with debt.  No more new debt.  Cut up the credit cards.  
Third, get on a budget.  Become the budget meister.  Learn how to budget and become good at it.  
Fourth, cut your lifestyle to the bone.  Put aside 1 to 2 thousand dollars… this is your emergency fund. It’s for emergency’s only, things like cars breaking down, appliances breaking down, and more.  Things like clothing sales, tattoos, and more DO NOT QUALIFY!   
Fifth, pay off your debt as fast as possible.  This includes all debt EXCEPT your mortgage… that will come later.  

That’s it… That’s all you need to know to get rid of your (Not So) Great American Hangover.  The question is not can you do it… the question is, will you do it!

GO for IT!