This edition of Footsteps Along the Path was initially issued by Clear Path Financial Education Services which has now become Kuehn Financial Education Services LLC. For more information about Kuehn Financial Education Services LLC, please email or visit www.kuehnservices.com.

Clear Path Credit Consultants believes:
If you build on your own skills,
Rely on your own abilities,
Increase your range of knowledge,
And get help when you need it,
You are the investment that will succeed above all others.


Welcome to the eighth edition of Clear Path Credit Consultants' Footsteps Along the Path. The goal of this newsletter is to provide relevant and succinct information on financial management to consumers and small business owners. It is designed to build upon previous issues, developing a clear path to financial freedom. Reader feedback is encouraged.

Please feel free to forward Footsteps Along the Path. If you have received this from a friend or colleague, and wish to be added to the newsletter distribution list, simply provide a response E-mail with this request. The same applies if you do not desire further contact, your name will immediately be deleted from the list.

Life and Death's Affect on Life and Debt

Is a survivor responsible for debt repayment upon a family member's death? The following answers to this question are not legal advice. This article is intended to provide basic information and perhaps foster a conversation between family members and their attorneys.

In general you will inherit loved ones' property not their debt. However, if the property is used for collateral of debt ... the debt comes with the property. For instance, you will have to assume the mortgage on your family member's home to keep it.

Also, possessing power of attorney does not make you liable for the deceased's debts. Although, if financial troubles result from you mismanaging the funds, you own the debt.

If your aging parents are in poor health and have difficulty paying their bills, it may seem natural to come to their aid and take over their checkbook. But, under no circumstances should an adult child become a joint or authorized user on his/her elderly parents' credit card account. By becoming a joint credit card user, you assume responsibility of their debt. This credit card account will show on your credit bureau reports. After your parents' passing, you will be liable for the outstanding balance.

What if a spouse dies, is the surviving spouse responsible for the accumulated debts? In all states if the debt was taken together, the answer is "yes." Arizona is a community property state. Thus, all debts created during the marriage, no matter which spouse is responsible, become the burden of the surviving spouse.

Clear Path Credit Consultants recommends discussing financial affairs with elderly family members. The rewards from this difficult conversation are worth the effort. State your purpose for this conversation and then listen to what your elderly relative has to say. Set aside enough time to truly talk.

Being a Knowledgeable Consumer is Powerful

Some people identify and set goals.
Some people live day to day without giving goals much thought.
Some people who are goal oriented succeed while others never experience the fruition of their goals.
Why?

Are people whose goals that become reality smarter, better prepared or simply luckier than those whose goals still remain an illusion? Or is it people who reach their goals, live like the goal is already a concrete reality in life today? Goal achievers believe in the vision enough to live it daily, making tangible efforts so the goal may manifest itself. Daily activities contribute to accomplishment of goals. It is no harder than that.

What about the folks who do not set goals? They do not have a clear picture of how life should treat them. There may be fear of failure to oneself and judgment by others. However, doing what is fearful dissipates the fear. Perhaps not knowing what the first step to take prevents people from moving in any direction. A launching point is to ask, "what is it I want my life to look like?" Next, Clear Path Credit Consultants suggests ranking goals in order of importance, setting a deadline for achievement with a clear definition of success. An example statement is: I will have a portfolio of 2.5 million dollars twenty years from now. Also, set time aside daily for reflection and planning.

Reader Inquiries: Net Worth

Last month "Being a Knowledgeable Consumer is Powerful" dealt with net worth. Since that time, Clear Path Credit Consultants has received inquiries regarding the relevance of net worth. As a calculation net worth is assets minus liabilities. The resulting figure indicates your financial stability. To have a high net worth: it is not what you have, it is how much you own of what you have along with saving and investments that far exceed debt.

Statistics indicate the net worth of an average American, exclusive of her/his home, is about $15,000. To put this in perspective, if someone is laid off with little net worth because of no savings and great debt, foreclosure and bankruptcy could become a reality. In addition, thirty percent of retirees at age 63 have saved less than $10,000. Due to lack of net worth, half of all retirees would be living at poverty level but for their social security checks.

An easy way to accumulate high net worth: Don't earn just to spend.

Holiday Cheer

Give the gift of inspiration. Share your favorite quotes with readers of Footsteps Along the Path. Simply e-mail Clear Path Credit Consultants with words of wisdom that motivate you. The phrases you live by will appear in the next issue.

Upcoming in Footsteps Along the Path

Next issue look for information on:
A Look Back: 2003's Economic Foibles and Follies
"Living Frugally in a Consumption Economy" was the lead article in Issue IV. In response, many subscribers indicated an interest in learning more about our government's economic decisions and how they truly impact each person. This article will be in that vein.

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Deborah A. Kuehn is the sole proprietor of Clear Path Credit Consultants, a financial management education service. Clear Path Credit Consultants teaches people to reach their financial goals and create a solvent and credit worthy lifestyle.
"Clear Path Credit Consultants: Helping you sleep better at night."
PH: 623-580-9293


Thank you for taking the time to read Footsteps Along the Path.

Written by Deborah A. Kuehn, MBA
All rights reserved
Clear Path Credit Consultants is a registered trade name
Issue VIII
November 14, 2003

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