Why Are Professional Athletes Going Broke And Why You Are Too

Why are professional athletes going broke?Growing up, so many kids dream of being superstars, especially professional athletes. Although chances are very slim that you will make it into the NBA, MLB, or NFL, it does come true for a select few individuals. Along with being able to play your favorite sport on national television, you get paid millions of dollars to do what you love, there are many down sides to being a professional athletes that most regular citizens do not see. One of the biggest downfalls of being rich and famous is how to handle that sudden influx of a large amount of money. Far too many professional athletes find themselves broke, in bankruptcy  and without a viable way to earn an income if they are not careful.

The same happens to all of us albeit on a much smaller scale. For professional athletes, many of them find unscrupulous financial planners taking advantage of them, their spending may be out of control, poor investments, abuse their finances, and/or find themselves in much deeper debt when they retired than they were in when they came into the world of professional athletics. So, why are so many professional athletes going broke? Are they so different from the average American? Ironically, there are a lot of parallels.

ESPN’s 30 For 30 Series – Broke

Last month, ESPN aired a documentary as part of their 30 for 30 series called “Broke”, which showed how many professional athletes went from rich to broke shortly after their professional careers ended. In many cases, the same reasons that they professional athletes going broke applied to our lives. They trusted poor financial planners, had ill advised investments, overspent, went into debt spending more than they made, did not have multiple income streams, lived above their means, and were responsible for too many friends and family members. Child support, bad investments, and living above their means were the downfall for many of these men.

More Money Compounds Poor Decisions

There is always the question of what people would buy if they hit the lottery. Some people have dreams of buying their dream car, owning a vacation home on a beach, or simply giving more to charity. We all have different dreams of what we would do if we hit the lottery, but most of us only simply dream. Professional athletes sort of hit a lottery after years of incredible work ethic and playing, a select few hit a big payday when they become professional athletes. Here are some of the quotes from the ESPN documentary that give us a unique insight into the financial world of professional athletics and paints a picture of what poor money management does when you have more money than you could have ever imagined. Many of these players receive the money so quickly going from broke to rich and back again in the blink of an eye. Former NFL player Keith McCants said during the ESPN documentary, “I bought myself a yacht, a mansion, a couple of cars. That ain’t a million dollars. That’s seven million dollars. I pretty much gave it away.” Another NFL player, Andre Rison, admitted, “I guarantee you, I spent a million dollars on jewelry.”

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Debt Solutions That Could Be Right For You

When you’re struggling with debt, deciding to ask for help can be a hard enough step to take never mind trying to find a solution that would suit your personal needs. At Your Debt Expert we have a range of debt management and personal insolvency experts waiting to help you through your debt problem as … Read more

How to Stay Out of Debt This Holiday Season

Ways not to go into debt this ChristmasThings continue to be rough for many families across the country, and the holiday season tends to make problems either show themselves for the first time or grow exponentially. But, that does not mean that you need to add to your debt to make up for it this holiday season.

It is okay to tell your children that Santa is broke this year. Here are several ways that you can avoid adding to your debt this Christmas. There are ways that you can learn how to stay out of debt this Christmas and holiday season.

Use Your Credit Card Reward Points

My wife and I love to earn reward points with our credit card. We use the points at the end of each year as a way to get free gift cards that we ultimately give to our friends and family members each Christmas. Throughout the year my wife and I use our credit card to earn reward points.

The reward points that we earned throughout the year help supplement our gift giving and helps to keep us from going into debt this Christmas and every holiday season. You can find great deals on reward points when you compare credit cards and pick the right one that will earn you the most points on the things that you buy most.

Points.com helps the world’s leading loyalty brands engage their members in entirely new ways – both on Points.com and through their own loyalty program websites.

Points.com is the world’s leading loyalty program management site, helping users get more flexibility and value from their airline, hotel, retail, and credit-card loyalty programs.

On Points.com, users can track all their loyalty balances in one place, earn points and miles faster, and redeem for gift cards, exchange and trade loyalty currencies between programs, and buy points and miles to reach loyalty rewards faster.

Joining is free! Exchange your reward points and flight miles between your existing programs at Points.comPoints.com

Points.com is proud partners with more than 45 of the world’s leading loyalty brands, including Air France KLM, Hyatt, Virgin America, Jet Blue, Alaska Airlines, US Airways, IHG, Starwood Hotels, Southwest Airlines, and many more.

Earn Free Gift Cards When You Buy

One thing that I love during the holidays are the deals that retailers and especially restaurants give when you purchase gift cards to give as gifts. Many national restaurant chains offer deals such as giving away a free $10 gift card when you purchase $25 worth of gift cards.

These can be great ways to get gift cards to give to your loved ones during the holidays doing something that you normally do anyway (go out to eat). You can also use these gift cards to save you money while eating out at restaurants as well. Whether you give these extra gift cards to friends or save them for yourself, they can be a great way to save money and avoid debt this Christmas.

Look Online For Deals And Set Percentage Points Off

One thing that a friend said to me recently really struck a chord. He said that he never pays retail prices online for anything. He taught me that he always looks for deals and checks comparison sites before making a purchase. He also checks websites like RetailMeNot.com to find some of the best online coupons before buying any items or even services online. This was a great tip that has ultimately saved me a lot of money over the past year or so. Now you can also compare prices right on your smartphone as well.

GiftCards.com and PlasticJungle.com. Some current deals on gift cards on Plastic Jungle let you buy gift cards at the following discounts for these retailers: up to 15% off at JC Penny, 20% off at Boston Market, 10% at Pottery Barn, 7% off Home Depot, 5% off Target, and many other top brands!  We also have a good inventory of airline and gas cards.and many other national brands.

Make Hard Cuts To Your List

Do all of your aunts and cousins really need a Christmas gift from you this year? Would they understand if you told them that you are only giving gifts to your immediate family this year in order to save money and avoid adding to your debt this Christmas season? They will most likely understand your plight because we have all been struggling these past few years.

Set Spending Limits For The Holidays This Year

The hardest word to say in the English language is no. No! But, it is a critical one in my family when it comes to staying out of debt this Christmas. My wife and I set a spending limit for the holidays and all of the gifts we give. While budgeting is not a fun topic for anyone, it is incredibly important. You have to have a spending plan and set a limit to keep yourself and your family out of debt this Christmas.

You may not be ready to think about it yet, but Christmas as the holiday season is rapidly approaching us. And, we all know that the holidays are an expensive time of the year. One reason is that we are a very generous society and love holiday gift giving.

One recent survey found that Americans spend over $500 per year on gifts for our friends and family. We love to give and giving can quickly add up and become a budget buster.

But, there are a few ways that you can make this a perfect year and still give gifts that make you just as happy as those who receive them without living a case of buyer’s remorse or a pile of credit card debt.

Five Ways To Make Holiday Gift Giving Perfect This Year

Start Budgeting Now For Christmas Gifts

You should start budgeting for your Christmas gift purchases now if you have not done so already. Do you spend the average of $500 on gifts every year? How much did you spend last year? Do you spend wisely when it comes to your holiday shopping?

Divide that amount by the number of paycheck you have left until the holidays, and that is how much you should shoot for setting aside. Budgeting will help you stay away from using your credit cards and falling into the debt trap.

Now is the time to start thinking about holiday gift giving and the gifts that you will give to your friends and loved ones. Do not wait until the holiday’s are right upon us.

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When You Should Consider Freezing Your Credit Report

Consider Freezing Your Credit ReportWhen should you consider freezing your credit report? Your credit score is one of the keys to your finances. Companies use it to determine what interest you will pay, if you are even qualified for a loan, use it to make hiring decisions, and even use it in determining how much your car insurance premium will be.

Certain events could make you want to take action freezing your credit report like being the victim of identity theft. Here is a step-by-step way to freeze your credit score to help you protect it.

Why Freeze Your Credit Report

Freezing your credit score is not a decision you should take lightly. If you believe your identity could have been stolen, you should consider a credit freeze to help you protect your credit score from further damage. When you freezing your credit report, you prevent others from accessing your credit, opening new accounts, taking out loans, and taking other actions that can harm your credit score.

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