Denial is not a River in Egypt

Are you in financial distress, but incapable of admitting so?

Just like the collapse of some of the most storied franchises in the history of the United States banking industry, you may be on the verge of bankruptcy.

What can we learn from the current credit crisis about our own personal financial situation?

Liquidating hurts a lot more than recapitalizing. Even unsecured credit cards will determine your ability to obtain a future mortgage.

If you struggle with debt on a monthly basis, it is time to assess your situation and make changes accordingly.

Recall Franklin’s definition of insanity – “doing the same thing over and over again and expecting different results.”

Don’t give up. We can fix this together. But, the first step is recognition.


2 responses to “Denial is not a River in Egypt

  1. Dear Credit Brain,

    Your advice has been very helpful as clearly we all need to be conscious of managing our debt and credit scores during these volatile economic times. Here’s my question, I have decent credit right now but want to make some significant purchases for my home but know that I’ll need to pay these off over a long period of time. To protect my credit ratings, am I better off splitting up my payments over multiple credit cards so each bank “views” my balances as lower and not one huge outstanding balance?

    Thanks for being a great resource.

  2. Hello fritz,

    One thing that is very important to your FICO score is called the credit to debt ratio. Debt Used divided by Available Credit = Debt Load. Obviously, using a single card for the purchase will result in a significantly higher debt load. As such, it would be wise to spread this purchase over numerous cards, effectively minimizing your load.


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