Is it just me, or does it seem like every other commercial on the TV or radio is for some sort of debt relief or debt consolidation company?

I know things are very tough right now with the economy. Unemployment is at the highest levels since the early 1980s, it’s still very hard for small businesses and consumers to get access to credit, and the housing market – the single largest source of personal wealth in this country – will probably never rebound to its 2005/2006 peak.

But, are things so bad and were we collectively such terrible money managers that we need to be completely inundated with companies offering to help us settle our credit card debt for pennies on the dollar?

Considering much of our (fake) economic prosperity over the past 20 to 25 years has been fueled by debt spending – both by our government and by the general public – it makes sense that we’re in a world of hurt. After all, it’s easy to spend on debt when all you have to do is do a quick cash-out refinance of your always-increasing-in-value home.

But now that the refinance and home-equity loan spigot has been all but turned off thanks to rapidly falling home values – nearly one in four borrowers is underwater – we actually have to pay down our acquired debt with our savings – which, for a while, was either negative or right around zero percent.

Couple this with the fact that the number of Americans who filed for personal bankruptcy surged by almost 33% in 2009, it’s easy to see why there is such a demand for debt consolidation and credit counseling services. After all, we wouldn’t be surrounded by these advertisements if they were falling on deaf ears.

Hopefully The Great Recession has reminded us that frugality is good, make sure we live within our means, and save for a rainy day – or in this case a rainy two years.

What are your thoughts? Please leave your comments below.

First of all, happy New Year!

Like most everyone else, you’ve probably come up with some New Year’s resolutions, some of which may include some financial goals. Maybe you want to pay down some credit card debt, save up for a house, or just be “better with money.” Whatever financial goals for 2010 are, I want to help make sure you see them through.

In order to make sure you follow through on your goals for all of 2010 and not just for the first few months, you need to do two separate things, which, if done right, will dramatically increase the chance you’ll complete your resolution.

1. Determine the what, why, and how of your goal/resolution
2. Write down the what, why, and how of your goal/resolution and carry it with you

Both of these steps are pretty straight forward, and leave you little room for excuses!

WHAT: state what you want to achieve, trying to be as specific as possible. For example, don’t just say, “I want to pay down some credit card debt.” Instead say, “I want to pay down $1,000 of my credit card debt by June.” The more specific and absolute you can are, the easier it is going to track your progress and hold yourself accountable.

WHY: state what you stand to gain from accomplishing the goal, again, being as specific as possible. Using the above example, you could say something like, “in order to achieve more financial stability and to improve my credit score.” When you review your goals from time to time, seeing the “why” will reinforce the goal and help to keep you moving forward.

HOW: this is where you outline your battle plan, being (you guessed it) as specific as possible. In taking the credit card debt example, you might say, “by going out to eat only once per week and not buying any new electronics until I’ve met my goal,” as opposed to saying something like, “by spending less.”

Now that you have your fully formed goal(s), go ahead and, on a small piece of paper, write down all of the pieces of your goal(s). When you’re done, stick the piece of paper some place you look at frequently in order to keep the goals fresh in your mind. Because these are financial goals, I find it useful to stick the piece of paper in my wallet.

I wish you a very happy and healthy 2010, and hope that by following this advice you achieve all of your goals – both financial and non-financial – throughout the year.

Want to share your resolutions? Have a better way to plan out and track your goals? Leave your comments below!

Without a doubt, we are in some very tough economic times.

Unemployment is at a 26 year high and expected to get worse before it gets better. Despite recent signs of stabilization, housing is likely still years away from returning to normal. Consumers are nervous about money and have cut back on spending, which is putting even more pressure on jobs, and subsequently, the housing market. As you can see, this is kind of a vicious circle.

Long story short, it’s a good time to be concerned about your money.

Despite the bleak outlook, there is certainly a silverlining on these dark economic clouds.

Consumers have figured out it’s ok to be frugal and not feel the need to keep up with the Jones. Many of us have gone from being net spenders to net savers, started budgets, and track them to the penny.  We clip coupons, buy things when they’re on sale, and only buy things we need, not things we simply want.

In short, we’ve become much more aware of our finances and have started taking a more active role in shaping our financial futures.

I’ve started The Personal Finance Program to help people interested in living a frugal lifestyle and saving money for a rainy day.