Look Honey I Bought Something!

Like most people, a lot of our friends are in debt. Unable to understand how to eliminate it, they often use it as a crutch for their life situation. There are many strategies, and endless advice on getting out of debt. But before you can build an emergency fund, or begin any well thought out plan you need to stop continuing your debt before all else. It’s bad enough that many people are paying the minimum payments on their credit cards, but every month they’re adding more and more purchases onto that bill. Cut up all of your credit cards. Stop accumulating more debt. This should not be a very emotional thing to do, and if it is then you have a long road ahead of you, and perhaps you’re not ready to get out of debt, and maybe never will. There are a vast number of people who do not see anything wrong with carrying heavy debt. There are people who do not see how the advertising industry has perverted our lives, people who do not understand that hyper consumerism is escapism. For these people endless meaningless buying is not a problem, but a solution to something more empty in their lives. Until you know where you stand on these things, you will never be able to take your financial situation seriously. You will never understand frugal living, and financial responsibility. Where do you stand?

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3 responses to “Look Honey I Bought Something!

  1. icantdothatdave

    I agree 100%. My wife and I are in the process of getting out of debt, and it’s not possible until you dice the cards and stop using them as a crutch.

  2. After a LOT of trial and even more ERROR, I have figured out how to do this and I am loving it. I just paid off the first of three credit cards and I am hooked. I now understand that a credit card is for emergencies. In college, I had 6 or 7 credit cards, maxed out because I thought emergencies were things like skiping class to go to the mall, or beer on a Friday night. Its all about being a grown-up and seeing the things in life that are actually important.

  3. B and I are working our way out as we speak. It’s slow and we’ve made some amazing progress given the circumstances, so we’re totally optimistic about the whole process. We cut our cards up a few months ago, and it was quite liberating! As for Sara’s comment about the credit card being for emergencies, the whole plan of truly staying out of debt is creating an easy-access cash fund for emergencies, rather than depending on the credit card to bail you out. You can simply start a savings account at your local bank, or also check into some higher return savings, most of which require a heftier deposit but give you a better return. There are lots of ways to “save” your money and make it work for you, so it might help you to find a financial advisor whom you trust completely. That way you’ll have someone to help you find what the best way to save your money and explain all the differences between IRA’s, mutual funds, etc.

    We have learned the value of savings the hard way, and the lesson we’ve totally had mashed into our brains is just when you think you’ve saved enough for whatever, save more. Because if the time comes and you need it, it’s so nice to not have to start at the zero mark again…

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