Money Management

Debt is Dumb!

Debt is dumb. Can I get any clearer than that? You may ask “Why is debt dumb”? and “If I am in debt does that mean I am dumb?”

To answer those two questions: It is dumb because it:

is complicated
is stressful
it will make you broke
can cause bankruptcy
breaks up relationships
is pushed down the throat of most people in the western world!

Debt is dumb; you are NOT dumb if you have debt. In fact you are normal. I am sure you have heard the stats - on average households have at least $10,000 in consumer debt. Consumer debt is rising. It is easier to get credit now then ever before.

It’s the dream of most people to have a beautiful home, a nice car, nice things and take nice holidays. Unfortunately you may have been sold on having these things now, instead of when you can afford to pay for them. Every day we see images that tempt us into having the latest and greatest stuff. Buy now, pay later! Instant gratification – it has been sold to us as necessary. And to have that instant gratification we need to take on debt.

It’s much easier to pull out your credit card then say no. Unfortunately it ends up costing more in the long run (in interest charges and stress) than it does if you had purchased the items with money you already had.

Society teaches us that we have to have debt to win at life. We see it everywhere. Our parents had debt, our friends have debt, and even our teenagers are taking on debt.

Debt is dumb because it stops you from achieving your dreams. It creates insecurity, and a black hole that you have to choose to climb out of or just dwell in the bottom of.

More than likely you are tied to your job to pay your bills. It is a vicious circle! You buy things on credit, get the bill, work at your job to get paid to pay the bills.

Chances are the stress of growing credit card bills and the stress of trying to pay them off will effect your relationships. After all 90% of divorces are caused by money problems!

Debt is dumb because it is complicated. Credit card companies send out millions of new credit card offers and anyone can get a credit card, or 2 or 15. You enter into a contract as soon as you use the card. But what are the terms? They are more than likely complicated and hard to read.

So now it’s up to you.

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