Studies show we are all much smarter and more educated than

ever before. So why is it we are up to our eyeballs in dept?

The only answer is Financial Education!

We are in desperate need of it!

The days when our parents or grandparents had secure jobs,

savings and paid for everything in cash, from their car to their

house, are over.

Today, individual debt is growing 23 times faster than the economy

and the housing crisis and credit card debt is largely to blame. On

average we spend $1,05 for every dollar we earn.

Consumer delinquency rates, bankruptcies and foreclosures are at

an all time high.

Why is it that within one generation we have lost the security and

ability to make and save money the way our elders did?

The answer is simply that the rules have changed. One day,

someone moved the goal posts.

Unfortunately, unless we as individuals adapt to understand the

new rules of the game we will be left behind in a mountain of debt,

chasing financial stability which will always elude us.

THE CREDIT AND HOUSING CRISIS

Credit card debt and foreclosures seem to go hand-in-hand as

home owners struggling with their mortgage find it increasingly

difficult to pay their credit card bills as well.

In 2007, Americans accumulated an unprecedented $2.2 trillion in

credit card debt.

We are spending more than we are earning, therefore we are

supplementing our income by withdrawing high-interest cash

advances from our credit cards.

Late repayment is the highest it's been in three years the

consequence of which is that credit card companies are increasing

fees and cutting credit limits. Some are even increasing rates not

to mention not giving out credit at all.

As for the state of the housing market, foreclosures went up by 50

percent in 2008.

Easy credit back in the days of the housing boom meant that

mortgages became available to people who otherwise wouldn't be

able to afford one. Many today owe more on their homes than they

are worth.

It is estimated that every foreclosed property lowers the value of

every other property on the block by 1.5 percent. This pushes

lenders to reduce prices dramatically to rid themselves of all of

those foreclosed properties.

It is expected that property prices will continue to fall another 10

percent in the following months.

Our credit cards are working overtime and one reason is the

soaring price of gasoline. Now costing $4 per gallon, prices show

no sign of slowing down.

This hike in fuel price does not only affect people who commute to

work and need to fill up the car's gas tank. When gasoline prices

go up so does everything else you purchase from clothes, to food, to

heating (which is expected to increase by 30 percent).

If your family is already on a really tight budget these extra pennies

can really tip the balance towards some seriously negative cash

flow.

SO WHAT CAN WE DO?

The answer is Financial Education. As individuals we are in so

much over our heads that we just don't know how to start repairing

our financial situations.

The will is there though! We are more than ever seeking advice

online and buying books about how to "Eliminate Debt" or

"Building Wealth". But can we make sense of what we are reading?

How do you start digging yourself out of debt?

Should you start by planning your retirement or by sending your

kids to college? How do you find the appropriate advice? How can

you be sure the person advising you knows what they are talking

about and not putting you at risk of more debt?

Should you invest in bonds, stocks, mutual funds or property? Can

you really shrink or eliminate your debt while expanding your

investments?

Although we have never been more educated as a society, when it

comes to financial education most of us are illiterate.

This doesn't mean that we aren't intelligent, just that we have

never been showed the skills necessary for handling money.

Although school taught us Math, English and Science, we have

never been taught how to be prudent consumers and expert

investors of our cash.

Some individuals are trying to change that though. Robert

Kiyosaki, millionaire investor and best-selling author of the "Rich

Dad Poor Dad" series, is a leading proponent of bringing financial

education in to the classroom.

Companies such as Wealth Masters International are currently

filling the need for a comprehensive financial education. Founded

by Kip Herriage a former Investment banker and Karl Bessey a

self-made multi-million dollar business owner, WMI is dedicated

to training people in debt clearance and steering them towards

lasting financial freedom.

It is important when commencing on your journey to debt

elimination to recognize that you might need the advice of more

than one adviser. It is important that every person you take advice

from be an expert in their field.

Do not be embarrassed to ask for their credentials and proof of

experience before you proceed with them.

It is also very important that your advisers can explain complicated

financial concepts to you in a manner that is clear to you.

It is estimated that Baby Boomers will need $1 million to retire. It

is therefore essential that you find advisers that will be able to help

you no matter what age you are now.

Working closely with your advisers, begin by developing a plan to

get yourself out of debt as quickly as possible.

Get help raising your credit score, saving money on taxes and

putting money aside in case of emergency.

Once all of these things are in order, your advisers should help you

choose wise investments and protect your family with life

insurance. They can even help you increase your cash flow and

your income!

There are many solutions available out there. You just need to

educate yourself about them through research, one-on-one

meetings with your advisers or by taking a financial education

course. You will then be better equipped for choosing the strategy

that best suits your needs.

Debt is probably one of the most chest-achingly stressful realities

of our modern society. At times it can seem like an

insurmountable and daunting task to eliminate debt from your

life... which can sometimes leave you paralyzed with fear.

However it is possible and not as far out of reach as one might

think. Your freedom can be just around the corner. All you need is

a little education!