11/5/2013 2:15 PM ET|
5 reasons you're in debt up to your eyeballs
Are the bills piling up on your desk? Don't despair -- just get to work. Here's how to move the pile.
We've all seen the LendingTree commercials where the guy says:
"I'm in debt up to my eyeballs. I can barely pay my finance charges. Somebody help me!"
If that sounds like you, read on. Here are a few reasons why you're swimming in debt and what you can do about it.
Financial discipline will help you assess your goals and consequences when faced with a decision that could potentially take you off the plan. Discipline is your friend. Embrace it.
Buying a new car every few years. Remember the car your neighbor bought? Well, let's just say you’re about six months from paying off your current vehicle, but you've now convinced yourself that it's time to get a new car because "I deserve it." This is a classic reason why so many people dig in and remain in debt. Most people relish the idea of not having a car payment, and others relish the new car smell and feel every few years. You must decide what's more important to you – living a debt-free life or cruising in the latest model.
In your world, credit is king. You enjoy a little retail therapy because you've had a hard week. But your bank accounts are overdrawn. Not to worry, you've got good ole MasterCard coming to your rescue. The problem? Your cards are mastering you and not the other way around. You've become so addicted to the plastic that you hardly recognize your spending plan anymore.
As with the guy from the LendingTree commercials, your life is largely financed by your debt. But it's driving you crazy and will cause many sleepless nights ahead.
Here's the thing about getting out of debt: It requires a strong but realistic spending plan that you can stick with through the end. This is a "living" plan that will change along the way, but that's the beauty of it all.
Forget keeping up with everyone else, and cut up your credit cards. Spending your time trying to impress people who don't factor into your bottom line is a waste of money and will impede your financial goals. Assess your financial goals, and decide if having a new car is truly worth the money spent. Remember, it's no fun being stressed because your finances are out of control. Take control now, and enjoy the fruits of your efforts along the way.
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Get real with your articles. Who can afford to save $20,000 or buy anew car to go one up on his neighbors. The average American family scrapes to just make ends meet, let alone save anything.
Why you are in debt up to your eyeballs? Reckless borrowing and spending more than you earn. Pretty simple.
Solution: don't borrow. spend less than you earn. Pretty simple.
Most of the people I associate with do not want to manage their debt. They will never pay off their debt without managing it. You DO Not have to have a new car. You DO NOT have to have cable tv. You DO NOT have to go out and party or eat out every weekend. You DO NOT have to have a McMansion. A lot of folks can free up a lot of money to manage debt. I would recommend no more than 1 debt at a time to take out. Pay off the debt then move on.
My wife and I have been totally debt free for about 6 years now. Mortgage included. Wouldn't have it any other way. FREEDOM.
One of the biggest problems in this country is that 10's of millions of households pay nothing for a government that provides them with all sorts of services (benefits, homeland security, national defense, natural resources, a legislature, a judiciary, etc.; the list is endless).
The result is a bigger burden falls on us, the paying workers, which impedes our ability to save something for retirement, which forces working past 65 or retiring on a reduced standard-of-living.
Assume 35 million households provide ZERO $$ to this country in the form of taxes (forget SS taxes)
If we implement a $5.00 per day citizens/residency tax ($1825 per year) the government would bring in another $63+ billion per year (365 * $5 * 35 million). If the average household has to pay thousands and thousands in taxes each year, asking the non-contributors to pay $1825 per year is not asking much. If you want to be part of the American Dream then BUCK UP as I am tired of footing the bill for others.
Debit-spend more than you make.
Obese-eat more calories than you burn.
Life is simple.
You just might be a Democrat if:
You think that being financially responsible is a sin.
You sign your checks on the back instead of the front.
You believe that YOUR debt is mine.
Your mantra is "failure to properly plan on my( the democrat) part constitutes emergency help from you(the working)".
You believe that the definition of being greedy is taking care of my families needs first before charity.
You cannot admit when you're wrong.
You think that everyone with an opinion opposite yours is a bigot.
You vote with emotion rather than with facts and figures.
You need a cartoon in order to explain politics to you.
You have a cartoon mentality when it comes to politics.
You think you still have money in the bank because you have checks left over.
You need a spending plan if you're in debt? I think this is really funny, "... Since debt must be paid back, ..." If you have more debt than money to spend, you can't repay your debt and be able to spend at the same time!
Wow, nowadays, who has the money to go around buying new cars? I never bought a car, and the people I know who did buy used ones fifteen or twenty years old; they may be lucky if they can buy two in a decade!! People are buying brand new cars because they think they deserve them or are trying to "keep up with the Joneses?" They must be writing this article for someone else.
Credit cards? Nope, wouldn't know, never had one, why would I get that? I'd only end up using money I didn't have ...
And discipline? Maybe not eating for days or weeks on end is discipline, but that sounds a little extreme, don't you think? Unfortunately, winter is fast approaching, and I think people who have no eat and little food are going to struggle, a lot!
And they presume to speak for all there readers, "We do this to ourselves ..." No, I do not do this to myself.
By the way, for those who may not know, all debts cannot be repaid, that is why indentured servitude developed into slavery! In the economic system of the U.S., someone has to lose since money printed into circulation is charged interest. The losers are either: banks/Wallstreet and/or individuals and/or government. So, do we, as a society, stop borrowing now to pay off our debts so we won't rack up more debts, or do we keep borrowing more money to pay off our debts while racking up more debt, because very few people have much left to spend if any at all to stimulate the economy anymore?
The worse part about many of these "banks" is that they borrow money at incredibly low rates, but won't lend it out until they know rates start climbing again. Many people wanted to consolidate their debt at low rates, but banks will charge fees just to "look" and see if they can help you "refinance." To be honest, it is kind of sickening that they have become too big to fail ...
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