The danger in thinking “I can pay it off later”
I read a very interesting article today that really hit home. I have been dealing with debt ever since I moved out of my parents’ home (which was a long time ago I might add). While still in high school I was approved for a credit card in hopes to build my credit for yonder years to come when I would need credit to purchase a house. I have to say that it seemed like a great idea at the time, but to this day I still struggle with debt.
A great analogy that was mentioned in the article I read, was that of an obese person and the steps for them to loose weight. To become thin and trim you must change your habits and work daily to become the person you want to be; however this could (and will) take years. Just like credit card use and debt control, it could take years to overcome. You have to learn how to budget, stick to your budget, and then be patient and persistent as you watch the debt fall off.
A common occurrence that I find myself falling into is that of having the mentality that I can “pay it off later”. Today, more than ever, this proves to be wrong. With new bankruptcy and credit card minimum payment laws recently passed, there is a possibility that you could reach the end of your life span still stuck in debt.
Having this mind set of “paying it off later” has really put a dent in my credit score and added to my stress level. Even though I have dedicated to put a certain amount of money from each paycheck onto my credit card to reduce my debt, I am still finding it impossible to get out of debt. Each month I continue to add even more debt to my credit card after I make a payment that doesn’t even match up to the amount spent during the last month. I also find myself feeling like “oh, I paid a huge amount on my credit card this month so I can spend a little bit more” when in reality I didn’t even cover all of last months debt in the payment I made.
Just the mental aspect of putting money on my credit card leaves me with this mindset that I can spend more money. It’s like I am deceiving myself by thinking that my debt will eventually go away because I am putting “some” money towards it each month.
Watching the expenses is tough! You don’t realize how much you are really spending when it comes to using that little plastic thing usually located in your billfold or purse. This is another one of my MAJOR mistakes—using the credit card to purchase unnecessary items. If you are a cash carrier, you will notice that once the cash is gone, it’s gone! Whereas with credit cards, you are borrowing money that you don’t have. Once the credit limit is maxed out on that card, you are the one gone!
Debt is a serious serious problem in the world today! It is an addictive drug—the want (and purchase) of unnecessary items must be dealt with accordingly. Today people—and I can testify to this—are not living within their means. Get yourself out of that mentality of “I can pay it off later” and watch those expenditures! It may take a while to learn how to live within your means, but it is do-able.
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May 1st, 2006 at 1:34 pm
Thanks for the shout out! I’m so glad that you liked John’s article on debt. It certainly made me think a bit about my own debt habits.
May 2nd, 2006 at 6:18 pm
[…] So, I set some goals at the beginning of the year, one being that I would get out of debt and learn to better manage my money and expenses. I have not yet reached this goal because, if you read my last blog The danger in thinking “I can pay it off later” you would know my story; however, going hand-in-hand with being financially stable and money smart would be that of investing. In my goals for the year I have also came to the conclusion that I need to put some money away; whether it be for emergencies or just for a “good opportunity” that comes down the road later on and what better way than to put it in safe keeping where it can accumulate interest AND give you the ability to take it out anytime. Of course there could be a small fee that applies when removing it before the specific time period is over. […]