Instead of answering a question today, allow me to pontificate on a subject that threatens the fabric of many a household.

While you ponder your personal finances, as one must do at times like this, be sure to examine your values, your ego, your influences and the choices you've made.

It might be time for an attitude adjustment. Many have chosen to live way above their means, perhaps in competition with the Joneses or just feeling entitled; many were sadly naive.

Conveniently, interest rates were low enough to make it easy to have whatever you wanted, whether you could afford it or not. We were seduced, enabled and temporarily rewarded. Debt became an addiction, and now comes the withdrawal.

The example of how to live within your means has certainly not been set by Washington, the banks or many corporations. This credit crisis is all about an alarming amount of debt piled on debt, and what you're seeing is what happens when everyone gets tapped out and then some. It's not pretty. Jobs are lost, homes too; businesses are shuttered. Without easy credit, autos can't sell, so dealers are closing; banks and markets are scary, and everything's on sale except groceries and gas, which are through the roof. Having fun yet? How did we lose our way?

In the early 1980s, credit card offers started showing up in mailboxes and at college campuses with a vengeance. Like drug dealers, these companies persisted with their enticements until we all got hooked. Then, between the media, peer pressure, the ad industry and loose financial oversight, even absent of parental or spousal resistance, the lines between need and want blurred. When credit cards filled up, inflated home equity was there to continue the party.

Agencies and companies that could have stopped this train wreck by providing limits and oversight had a huge conflict of interest. They needed you to borrow so they and the economy could survive and appear healthy. Like loan sharks, easy profits were made on the backs of often unsuspecting yet sometimes greedy consumers, blowing up that debt balloon way beyond its limits. Basic values and personal responsibility seem to have been relegated to a back burner.

Well, the party's over, balloons have popped and the piper's looking to get paid. If you're one who got sucked into an overinflated lifestyle, then take a deep breath and assess your situation, because times have changed and you need to as well. Just like the banks and financial institutions are doing, you must lay your financial cards on the table, face reality and work to get through it. What are your debts? Can you negotiate? Perhaps credit counseling can help. Don't be embarrassed. Be smart. You're far from alone. Remove any unneeded excesses from your life, and do what you have to do.

Look for opportunities to bring in some extra money and get creative. Many a cottage industry was born from need and creativity. Strive for your own balanced budget. Pull in your belts; revive your old recipes. Swap clothes with friends, for you and your kids. Get solvent no matter what. After this hangover, exciting times await us, but it's going to take more than two aspirin to feel well. The sooner you face reality, the better. So dust yourself off, get on board and face this brave new world with gusto.

Meg Green is a certified financial planner. Mail questions to her c/o Sunday Business, The Miami Herald, 1 Herald Plaza, Miami, FL 33132 or send an e-mail to

askmeg@MiamiHerald.com. Include your full name and city of residence.

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