Prime Real Estate Now Available on Front Street

There is one positive side effect to the sagging economy. The precarious job market, high gas prices and dismal housing market are forcing people to abandon prime property on “Front Street.”

Front Street! You know the place where a lot of people have been living for years. It’s located at the intersection of Living-Beyond-Your-Means Avenue and Keeping-Up-With-the Jones Way. It was populated by those lost souls who spent more money on appearances than on paying bills.

They invested big dough on cloths with labels and put pennies in their 401Ks. They have fancy foreign cars parked at home in their mother’s driveways. Or they own huge homes and eat at the finest restaurants but are drowning in debt. You know the type who rent the handbags of the stars and lease flat-screen televisions to impress their friends and strangers who couldn’t care less.

Yeah, those people - the formerly proud citizens of Front Street, USA who are finally being knocked back down to reality with the rest of us. This bad economy is forcing everyone to rethink where their money is going and where it has gone.

One friend who normally throws an elaborate birthday party for her toddler is contemplating cake and ice cream at home. My bet is that the child will have just as much fun. Another friend with dismal savings put herself on an emergency shoe diet after realizing that the amount she spent on shoes last year could have fed her family for six months. I guess Manolo soup doesn’t taste so good.

I never understood the type of person who bought things – or worse – lied about their lifestyle to impress other people. However, it’s a pretty common occurrence in our community. I believe it might be a symptom of many of our people growing up without. Once we are able to afford things or at least to qualify for them on credit, we tend to go overboard.

I’m not the most responsible person with money, but all of my bonehead financial faux pas were for me. There were times in my life when I have fallen victim to excess. After getting my first decent paying job after college, I ran right out and bought a little red sports car, even though my trusty Dodge Shadow was still in great condition. My new car - that I named Sasha- cost me 150 bucks more a month and had a manual transmission. I couldn’t even drive a stick. I had to call someone to drive it home from the dealership and teach me how to drive it before I had to go to work on Monday.

I loved that car but it was stupid. Not only because I was the only one skidding around in Chicago’s winter weather like a fool in a little sports car but because paying for the car immediately made me a slave to the system. If I had banked or invested the extra cash I would be in better financial shape today.

I’d like to think that I’ve learned and that I am wiser now. My hope is that through all of the diversity brought on by the condition of today’s economy, everyone will learn. If and when the markets correct and better days come, my hope is that people won’t forget the valuable lessons being taught now.

First, no job is guaranteed. Also, save more or as much as you spend because – surprise – rainy days do come. And most important, if you can’t afford it, don’t buy it, charge it, lease it or borrow it! Those same people you are trying to impress by throwing elaborate parties or driving fancy cars up and down on Front Street won’t be there to help you when the bottom falls out.

Credit-enslaved Consumers May Get Relief from Plastic Crack

Debt-challenged consumers soon may get some relief from the evil consequences of credit cards. High interest rates have brought many a shoe-loving diva to her pampered knees and kept millions in the perpetual poorhouse. So, the government is looking at ways to curtail shifty credit card practices in an attempt to ward off the same suffering created by crooked lenders who caused the mortgage crisis.

Cries from credit victims have federal regulators considering serious reforms proposed by several consumer advocacy groups. New laws may take effect next year that would stop the credit card companies for raising rates and imposing fees at will. For example, some propose extending the grace period before fees are charged and interest rates are raised from one minute after a payment is late to 30 days. One proposal would restrict marketing the plastic crack to consumers under 21. (source)

Sure, some people like my Über-responsible and forever financially-fit best friend may say that those who fall prey to the plastic temptress brought it on themselves. But few were schooled soon enough in the art of responsible spending to prevent their financial freefall into debt. They were infected with have-it-now-pay-later fever not realizing the true costs until it was too late.

Everywhere you look now there are websites, books, DVDs, talk shows and other tools to teach you to tow the line when it comes to finances. For most, however, those lessons came after the bulky balances of multiple cards already had sucked the fun out of having fabulously full closets and mean shoe game.

Being older and wiser, I now am able to resist those must-have bargains that really aren't and those once in a lifetime sales that pop up every three months. Having an extra mouth to feed and being self-employed helps control even the most intense shoe craving. After all, my daughter can't survive on shoe sandwiches.

Credit cards have gotten away with behaving badly and abusing credit-enslaved consumers long enough. They've made billions off of this ingenious and devious bank racket.

I say Hurray!!! I'm all for any new laws that will help the millions of reformed big-spenders who still are dealing with their pre-enlightenment debt. I only wish they could enact the new laws before my next AmEx bill is due.