I don’t have any remaining credit, a health collapse (in hospital two months and unable to work for a year) also collapsed my credit.

My dead-end job has no internal advancement opportunity and little room for raises. (It is widely believed here that the entire pay range runs from minimum wage to 20 cents above minimum wage.) Superior performance is not rewarded here, and mediocre performance won’t get you fired. (However, we did have one total slacker who did get fired.) Most employees are in a zombie-like comfort zone, where their performance is just good enopugh to stay on the job.

No, I won’t miss 1% taken right out of my paycheck, at least not immediately. I was once recently down to $1.21 in my checking account, and if I had taken 1% out of my paycheck, it would have been very sorely missed!

Try to avoid consumer debt and stay discipline.

–Stop using any credit you might have. Pay cash!

–Volunteer to work extra hours at your job. If you’re at work, you’re not spending any more money.

–Do your very best job at work, to prepare yourself for either a raise, or your next, better-paying job.

–If you can’t make your payments, contact your creditors to set up a repayment plan.

–Save! Even 1% of your take=home pay may seem laughable, but having any money at all tucked away can keep you from relying on debt for emergency expenses. A little bit of money is profoundly better than no money. You won’t miss 1% if you take it right out of your paycheck.

I work for a company that provides financing for mom & pop stores as well as big-box retailers. This whole concept that retail sales financing is a “gotcha” game is plain wrong. For starters, retailers get charged for us to do their financing. It can range anywhere from 4%-8% of the financed amount depending on their volume of business and whether or not we provide “interest free” or “same as cash” in 3, 6, 12, 18, or 24 month time periods.

A financed purchase is a benefit to a retailer. I have dozens of mom & pop customers throughout the Gulf Coast that could not compete without financing. They get to sell their merchandise and get paid usually within 24 hours. A debit/credit card purchase might cost that same retailer 4% of the purchase and he gets paid in installments. Plus, they don’t run the risk of loss trying to run a financing operation or lay-away program at their stores that costs them money by occupying usable space.

As for the consumer, they get to use someone else’s money for a purchase and pay it back in a way that fits into their budget. If they follow the requirements for interest free or same-as-cash financing the purchase has no cost to them. Someone that needs a new transmission in their car, a root canal, or a new refrigerator definitely benefits. I’ll say this from my anecdotal experience that the people that usually overburden themselves are people with the highest levels of income. Their perception of their ability to repay debts is inflated and any financial stumble usually sends them ruin or bankruptcy and most of the time these same people have filed bankruptcy multiple times in their lives.

What our company gets is the chance to build a relationship with a customer. Retail sales is considered a form of advertising for us. If we financed your refrigerator, maybe we can do a home equity loan for home improvements. Maybe an emergency happens and you can’t wait the 4-5 days it may take a bank.

Most of the rules are very simple. You have to have the amount financed paid within a specified period, with no late payments, and you won’t be charged finance charges. Our delayed payment programs are an even bigger boost to retailers. No payment of finance charges as long as the balance is paid off before 18-24 months depending on the amount financed.

Probably not good for most folks.

Or if you own your own home, you may want to think about getting a home equity loan, rather than a personal loan. Generally, the interest rates are lower and you get to deduct them.

FT