The Dangers of Debt – Beware the Easy Fix

OK here’s the scenario. You are up to your eyeballs in debt for a variety of reasons and along comes someone who tantalisingly hold s out in front of you potentially the answer to all of your dreams. A never ending stream of cash, flowing endlessly into your bank account and thereby in one fell swoop neutralising all of your debt and financial pressures.

The answer to a prayer?

Maybe.

The universal panacea to all your woes?

Possibly.

The only thing that you must consider is, remember the old adage. If it looks too good to be true then it by and large probably is.

The reason I bring this subject up is that this week has seen a couple of offerings from various Internet Marketing Gurus who have been offering to the general public the very opportunities described above. The answer to all your woes and financial pressures but as with all things like this there is a catch and you have to examine that catch to make sure that these opportunities don’t actually exacerbate your present situation rather than make it better.

We have one “guru” who claims that by running various paid for advertising Campaigns on Facebook you can make anything from $15 a day profit from running a Campaign without a web site if need be…as long as you are prepared to spend the $45 per day to fund the paid for advertising. Now let’s examine this. The principle is spending $45; get $60 back in return.

OK, fine I agree with the math and that can’t be argued with. But however, the $45 has to be paid for up front and the $60 is not likely to hit your account for potentially six weeks.

So effectively you are fronting up the $45 for six weeks before a single penny comes back into your account, and then only $15 of that is profit. So it’s actually $45 times 42 (six weeks at 7 days per week) making $1890 to make $630.

Hmnnn not quite so sexy now when you think about it?

I’m not too sure whether I know too many WAHM’s or unemployed who have the odd $1800 around to make $630 with?

OK, so the math is not in dispute, all that is, a far as I am concerned, is whether the right story in today’s climate is being told and sometimes the quick fix isn’t necessarily the right one.

It’s a killing field out there, to paraphrase Winston Churchill “Never in the field of Human Finance has so much been owed by so many and the hassle caused by so few” that sometimes when you are in real debt, initially to speculate to accumulate is not perhaps the wisest move ……..initially.

Take some time, take a few steps back, don’t be pressurised into thinking that you absolutely have to jump now or else you’ll miss the boat. In my experience there’s always another one along shortly and you might be in better shape to take advantage of that one.

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Tags: debt, debt relief, get out of debt, IM