What I can promise you, debt will bring if you don’t manage debt and let debt manage you!
For so many people in this world, debt can be debilitating. Shopping with friends and you get asked: “would you like to apply for a credit card?” You qualify and here we go.
Most young people are never really taught the importance of good credit and managing money properly.
Debt – noun
something, typically money that is owed or due.
Here are the promises debt makes and will keep:
- Constant stress over how you will pay your credit cards or other bills at the end of the month.
- Family stress. The number one killer of marriages is money. Buy homes we cannot afford, cars, furniture, clothes, on and on. Until the end of the month, and the dining table is covered in bills!
- Parents working one or two jobs to make it from one paycheck to the next. Waking up to find children grown and bitter. Why? You were never there! To busy trying to make a living, you forget to have an experience.
- The barrage of endless phone calls letting you know the obvious. You’re behind and we need a payment!
- Picking which bill gets paid and who does not get any money this month.
- Food vs. Credit
- Feeling as though one wrong move and financially, you are ruined. Stress beyond limits!
- Dark moments, suicidal thoughts all over bills.
- Keeping up with the Jones’s only to find ourselves in bankruptcy.
- Bad credit and loss of buying power. High rates of interest.
Imagine someone in your family deathly ill and you cannot come up with the money to travel. Another of debt’s promises!
Emotional purchases will sink your financial boat the quickest.
You go into a car dealership to buy a new car. You have a budget and payment in mind. Shopped online and narrowed down your search. All good stuff.
Upon arrival at the dealership, you begin to browse. “Wow look at this color, look at this car, check out these accessories.” All, of course, are on vehicles outside your budget. The internal battle begins. Metaphorically we’ve taken a raging alcoholic into a bar and said, don’t drink anything I will be back in an hour to pick you up! Only to come back and find your alcoholic passed out drunk.
If you do not control your spending, your debts will overtake your life. Guaranteed! Not too many things in this life come with a guarantee but debt does.
I have worked around consumer credit for thirty years now. Debt has also overtaken my life because I allowed it to get totally out of hand. The ten promises above are indicative of my own life. Poor choices have cost me plenty.
Parents or young people starting out. Educate yourself about credit and debt. Buying that beautiful $300 shirt that will make you look amazing. Won’t look so amazing at the end of the month if the money is not there to pay for it.
Sure, you can make the minimum payment and the $300 shirt becomes a $2000 shirt. Do the math on 26% interest and see what happens to the cost of just one item. Living paycheck-to-paycheck over several years. Chipping away at maxed-out credit cards will overtake your financial life.
Properly managed credit will make sure that your life will be filled with joy. Buying power and forethought to pay will allow you to own homes, cars, beautiful furniture, and other assets. With little to no stress.
TAKE EMOTION OUT OF ANY FINANCIAL EQUATION!
It does not sound fun, but the wake behind poor decisions can last years. Worse still ruin any chance you have of being a homeowner.
Imagine a mortgage broker coming back to you and saying, “unfortunately, YOUR credit will not allow us to give you a loan.” Devastating. Your credit prevents you and your spouse from homeownership. Sounds damned harsh because it is.
What can help:
- Check out books by great financial folks like Dave Ramsey, Suze Orman, let experts guide you.
- Check out the credit reporting agencies: Equifax, Trans Union, and Experian. Lots of excellent free resources.
If you have credit issues, you can recover. Start back small and work your way again. There is always hope and with diligence, you will be back on track.
Questions or comments: