Tuesday 20 April 2010

The Beginning of Wisdom by Alex Green

I watched in horror as my 11-year-old daughter Hannah plunged 150 feet down Cheakamus Canyon toward the river raging below.

My wife Karen and I had both tried to talk her out of it. But she wouldn't be dissuaded.

She wanted to jump.

Of course, she was attached to a bungee cord, one that "exceeded Australian specifications" (whatever that means). And Whistler Bungee -- an hour north of Vancouver and just below Whistler's 2010 Olympic Village -- has been in business for seven years with a perfect safety record.

Still ... I got the willies just looking down through the 300-foot span as we crossed it. This was a murderous height. It would have taken at least three burly men to get me out on that platform.

"You don't have any problem with this?" I asked a member of Canada's Olympic ski team who was suiting up for a jump as we arrived.

"Not at all," she laughed. "What could go wrong?"

"That's the difference between you and me," I said. "I have more imagination than that."

Of course, I knew my fear was emotional not rational, otherwise I would never have let my daughter jump.

That she wanted to jump still astonishes me. After all, this is the same girl who insists on cracking her bedroom door at night so she can see the light in the hallway.

We hate to admit it but most of our fears are irrational. Everyday life just isn't that dangerous anymore.   Technology, engineering, and modern medicine have eliminated most of the sharp edges.

Yet we can't escape our past. Our fears evolved as a basic survival mechanism. They arise in response to perceived threats, triggering a "fight or flight" response.

For most of us, it's flight (or avoidance). And studies show our fears are fairly universal: spiders, snakes, heights (... yo!), public speaking, and death.

As Jerry Seinfeld once said, "According to most studies, people's number one fear is public speaking. Number two is death. Does that sound right? This means at a funeral most people would rather be in the casket than doing the eulogy."

Our greatest inhibitor, of course, is fear of failure.

Consciously or not, it can paralyze us, keeping us from applying for the promotion, taking the risk, meeting the girl, asking for the order, experiencing the unknown.

It's always easier to stick with the safe, the comfortable, the familiar.

Yet every time we choose safety we reinforce fear. We nurture it. Only when we overcome this debilitating emotion do we really begin to live.

"He who is not everyday conquering some fear has not learned the secret of life," said Ralph Waldo Emerson.

How is fear conquered? By doing what we think we can't do, again and again.

When I was young, for example, public speaking made me nervous. Today, I relish the opportunity.

After a particularly turbulent flight 30 years ago, I was a white-knuckle flier. Now, I can't keep track of all my frequent flier miles.

Fear is the great barrier to success. It gives small things big shadows. It is the inverse of faith, trapping us between regret for the past and anxiety about the future.

Yet few things warrant the fear we grant them. We run not from genuine threats but imaginary bogeymen.

Perhaps that's why philosopher Bertrand Russell said, "To conquer fear is the beginning of wisdom."

And the rewards are many. Waiting for you on the other side of fear is freedom. Freedom from anxiety. Freedom from regret. Freedom from a life unlived.

Fortune, it turns out, really does favor the brave.

As Marianne Williamson wrote, "Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frightens us. We ask ourselves, who am I to be brilliant, gorgeous, talented, and fabulous? Actually, who are you not to be? ... We are all meant to shine, as children do. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others."

Does this mean -- like Hannah -- that I'm willing to embrace "Whistler's Ultimate Adrenaline Rush" and plummet toward the Cheakamus River?

That depends. How many burly guys have you got?

This article appears courtesy of Early To Rise, a free newsletter dedicated to making money, improving  health and secrets to success. For a complimentary subscription, visit the Early to Rise website.

Wednesday 14 April 2010

What is a Debt Consolidation Loan?

Debt consolidation loans are loans aimed in reducing your debts by consolidating it, which is replacing many payments each month into a single payment, making your money management easier. Knowing how to use these loans for debt consolidation is helpful in determining how to properly manage your money and free yourself from debts.

The advantages of debt consolidation loans are that it lowers the risk of you being late in paying your debts because it is already consolidated into one payment while paying off your debt in a shorter time. It will also have a good effect on your credit rating. But, on the other hand, since you consolidated your debts, your monthly bill will be much larger, so you have to be careful.

Financial institutions, especially the banks, offer various types of loans for debt consolidation. This is answer to the seemingly uncontrollable customers’ debts. The loans offered by the banks for debt consolidation includes several financial services such as personal loan, personal lines of credit and home equity loans.

Using home equity for debt consolidation is one way of paying off your debt. Home equity is the part of your home. Equity is built as the value of a home appreciates and as the principle in the mortgage is paid off. It is the difference between the mortgage and the value of a house and can be use for debt consolidation if you are living in your house. This is done through borrowing against your home equity.

Home equity can help you pay your creditors by debt consolidation. Through borrowing against your home equity, you can reduce your interest rates so that a major portion of your payment can go to your principal balances. There are two options in using your home equity for debt consolidation, the home equity line of credit and the home equity loan. These two options are secured by your property, and are called second mortgages. These options must be repaid over a period of 15 years, which is much shorter than the period set up to repay first mortgages.

In home equity line of credit, you will borrow a specified amount of money from a lender, usually the bank or other financial institutions. The lender will give the money up to the credit limit. It works like a credit card due to its revolving balance, in a sense that the given money can be acquired using debit and credit cards, as well as, check books. It is more flexible compared to a home equity loan. The interest rates of the home equity line of credit fluctuate and the payments depend on the rates.

Home equity loan, on the other hand, is type of a home equity wherein you get a second mortgage. It lets you borrow an amount of money with a fixed interest rate. This can be considered as a good option for debt consolidation because it works best when you need to, all at once, borrow an amount of money.

In using home equity for debt consolidation, banks have a formula in determining the available amount of your home equity to be used as a loan. Your debts can then be consolidated into one payment. However, it is important to settle your monthly payment so it will not lead to the lost of your collateral, which is your home. When you use it for debt consolidation, your home will be the guarantee or your collateral. If there comes a time when you cannot be able to repay the debt, the bank can sell your home, in which case you will be forced to vacate it.

Related links:
 Debt to Wealth
 Common Sense Debt Secrets
 Debt Buster Systems