I Want It All

Posted by: Gene M. | Dec 22,2007


It’s often said that people today have a limited attention span.  It’s unsurprising then that so many are having trouble saving for retirement.  Boomers do, I think, have it easier than those of the younger generation, because even though Boomers are adapting to the tech-heavy world, we haven’t been raised on TV and the Internet like the younger generation.  Conceivably, we should be better long-term planners – we’re able to look a little deeper into the future.     

Except Boomers have proven to not be the greatest retirement savers on the block.  Remember, we're the Me generation.   Still though, when given a plan, I’d like to think that Boomers will be able to stick to ite.  Take a debt-payment strategy like debt counseling.  A debt counselor will negotiate with creditors to lower the amount of your debt.  This definitely appeals to the demographic of people who want it all now: i.e. want to be debt free without putting in the work.  

It also appeals to suckers, so be careful.  Don’t go with a debt counselor who has unrealistic promises: Be Debt Free Today!!!  Never Pay a Bill Again!!! That sort of thing.  While debt counseling can reduce your debt payments, some counselors will be wholly ineffective and potentially cost you money.  

There are two major concerns in regards to debt negotiations: one the negotiations will freeze your current accounts.  This is one of the major things people don’t understand.  They hear “Low Payments!” and don’t realize that they won’t have use of their current credit cards.  To negotiate for a lower rate, you have to agree to not use your current credit accounts – for most types of negotiations.

Next, credit counseling can adversely affect your credit rating.  So really it’s a long-term prospect, so if you’re the type of Boomer who’s looking for a quick fix, this isn’t for you.  You’ve got to spend time getting out of debt and then clearing the negotiation from your record.  In that time, it may be difficult to secure a new credit line.  While it’s not as bad for your record as a bankruptcy, it still has some drawbacks.  In our instant-gratification society, this long-term prospect might not be as attractive a solution.     

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