Why you should get out of Debt
It usually does
not take too much convincing to reason with someone why they should do their
best to get out of debt. But if we must, here are some reasons why you should do
your best to do so. A looming debt is a stain in life, it negatively affects
your overall wellbeing. Always knowing there is money that you owe on something
can prevent you from relaxing and will put you in the position of worrying about
your finances. Personally I have trouble sleeping when I know there are debts
over my head I will have to pay off, (except car and house payments) but I'm
talking about everyday credit card bills for things I probably could have done
without. Reducing the debt load will help your overall feeling of financial pressure.
Speaking of
credit cards, the debt that they collect can be a real killer. With credit card
interest rates hovering around 19% and even higher for late payments (minimum
or the whole thing) Plus past limit fines/fees and even yearly fees to have them
(some anyways, often just the ones with special incentives) Its not hard to
see why although convenient, if left improperly managed, Credit Cards can really
start to erode your financial life and you become a slave to these mighty plastic
cards. If you owe $5000 and decide to make just the minimum payment, let's
even assume the minimum payment is 5% ($250) some are lower! Then it will take
you over 9 ½ years to pay that amount off! That's assuming your not adding to
that debt amount.
For
many people, not actually seeing the money in their hands makes it easy for
them to overspend. This is where credit cards can play havoc. Shoppers on average
spend up to 30% more when they are using credit cards over spending cash. Perhaps
it's the thought that you don't owe it immediately, that somehow over the
next few weeks or month you will have accumulated the money needed to completely
pay off the purchase. It's the buy now, think later mentality that really gets
consumers into hot water. It is easier to overspend with credit cards than cash
and more convenient to just let the credit cards receipts pile up in a dresser
drawer forgetting what you have really spent than it is starting with a set
amount of cash and seeing it dwindle away until you have nothing left. Overspending
also can make people feel that their debt situation is impossible anyways
and just start working on a "who really cares" state of mind. If your finding
this sounds familiar to you, start tracking your expenses much more diligently.
I once heard that
money is the biggest area of disagreement in a marriage. Sure its easy to say
your both conservative, like to save and generally agree what money goes where
but when it comes down to everyday life, its not such a easy task to agree on all
the time. Now if you factor into the equation a debt, especially if one partner
is the main culprit of that debt it can really though a wrench into the marriage.
One of the biggest causes of divorce was financially based. Statistics also
show that a husband and wife who have filed for bankruptcy have a much higher
chance of getting divorced. If you want to have a good marriage, keep a watchful
eye on your debts. It can't hurt.
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