Part Two: The Teachings of Scrooge


Or How to Reduce your Debt Fast 

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Part One: The World of Debt 

Part Three: Credit Control

Scrooge's Teachings

Whatever your opinion of Scrooge, he was in control of his finances and so should you. You should act according to how deep in debt you are. Scrooge would count every penny going out and every penny coming in. He was obsessed with money. Some of us are obsessed with buying goods, stuff. Others are less so but buy stuff anyway. But all of us buy something sometime somewhere. Money lives with us. Hard times calls for drastic measures.

Scrooge says:

  • Reduce your amortization period.   This can potentially save you a lot of interest cost.
  • Don't give charities a dime. There are enough people giving who are better off than you. Wait till you are out of debt to start giving.
  • Do not consume or use any service that requires you to tip.
  • Don't indulge yourself in anything of a retail nature unless they are the necessities of life. You may buy ground coffee to brew at home but you may not buy a cup of coffee at Starbucks.
  • Sell the expensive car, end or transfer the lease. If possible, use public transport unless your car is your means of income. If so, buy a cheap used car. Mine cost $2,000.
  • Move to cheaper accommodation. Cancel your internet, cable, home phone, cellphone, and newspaper or magazine subscription and use the free services that your local library has to offer instead.
  • Forget about entertainment that costs you money (cinemas, movie rentals, etc).
  • For food, use your local food bank. Forget about buying expensive cuts or expensive fruit.
  • For clothing, friends and family are a good source.
  • At home: save on electricity costs by turning out all the lights where one is not present. If there is day light, why turn the lights on?
  • Keep the A/C unit off at all costs.
  • Don't let the water tap open too long. Take a shower instead of having a bath. Brush your teeth while keeping the tap off. Wash the dishes by hand not with a dishwasher.
  • Use the local food bank. I said that already. Then...cook at home like we do.

Your creditors: They'll just have to wait for their money! Pay what you want or can, not what they want according to the payment schedule you have worked out. Remember that they are already charging you a near usurious interest rate. Keep in mind that you have several options, and one of them is to pay back the principal only.  Of course, the y might not want to lend you again. But if you can afford it, give them back the full amount.

Part Three: Credit Control