Thoughts on Debt

Granted the US economy is not doing well, but if you are suffering because you have accumulated too much debt and you have not had any mitigating circumstances such as illness or death, then it is time to set yourself straight and accept some personal responsibility. Unfortunately many people may not like to hear this, but most debt comes from overspending and reckless spending. Some people can’t help but have the newest and latest things on the market, even if they can’t really afford them. Many people are trying to keep up with the neighbors, the designer clothes, and the new cars, without having the income to support doing so.

If you have money, and you work, then you need to try to live within your means. Sometimes that isn’t fun, but it is very freeing to know that you have very little money going out every month, and it is extremely rewarding to watch your savings and 401K accounts grow. There is something so peaceful about not owing everybody and their cousin money, and about not having bills piling up while you are riding around in your new car. With the economy struggling you need to tighten your belt even further, which may mean putting off that vacation you have been saving for or reducing it to a smaller one. You must be smart, and at this stage of the game if you are wallowing in debt, you need to start up a plan to get it to a manageable amount quickly. That may mean cutting out the luxuries, saving money on your current bills, cutting coupons, or even taking on a second job. You need to begin getting those bills paid off and living within your means before things get even worse.

No one is really sure how long the prices on necessities are going to be rising for, but they do all agree that we are nowhere near the end yet. It is time to scrape every penny together and save it. Don’t spend without worry, that could be money that you will need to live on next year. Save at every opportunity and the payoff will be great.