 10
worst excuses for not getting out of debt
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10. I'm making
ends meet without reducing my debt -- This is like saying you
feel fine with 50 extra pounds of weight. The extra debt is putting
a strain on you whether you notice it or not. Let one financial
slip occur and you'll be amazed how hard you'll fall!
9. Interest rates are low so it
pays to keep debt high -- When rates go up, and they will, the
value of your home could go down. A fat mortgage could put you upside
down in no time, owing more than the house is worth. Moving for
a better job or opportunity may not be possible as a result, and
you may not even qualify for more revolving credit if your debt-to-income
ratio is too high.
8. I'm planning to work until I
drop dead -- Instead of working to pay your credit card bills,
put your money to work for you. Imagine if you get sick and can't
work until you drop! Stop wondering how much you owe and concentrate
on how much you will need to retire. The earlier you start an investment
strategy, the better off you will be when you want to kick back
and enjoy retirement.
7. I'm never going to borrow again
-- Credit scores are being used more often for measurement indicators
other than credit risk. A potential employer may request a copy
of your credit report to ascertain how you handle your finances.
All other things being equal, you may lose an opportunity because
of your lack of personal financial responsibility.
6. I can always borrow more if I
need it -- With big debt payments you will not be able to put
aside a savings cushion of three to six months' expenses. When the
unexpected happens, as it always does, you will not be prepared.
Without a savings cushion, you would end up adding to an already
heavy debt load for any immediate unplanned financial need and that
might not be possible.
5. It's all stupid's fault --
Money is the No. 1 reason that couples argue and is also the leading
cause of divorce. Take care of your debt, and you and your significant
other can switch from fighting about not having any money to what
to do with the money you now have available. I would recommend creating
a spending plan and getting on the same financial page. Then
you can pick a totally new topic for arguments.
4. Everyone worries about money,
don't they? -- Worrying about how to meet monthly bills causes
many sleepless nights, illness and missed work. People have even
gone to the extreme of committing suicide because they did not know
how to deal with their debts. Lessen your stress level and enjoy
life.
3. Let them chase me for the money
-- When you stop answering your phone because you do not want to
talk with another collector, it's past time to pay off your debt.
Just think how nice it will be to hear a phone ring without getting
a knot in your stomach, or to look forward to checking your mail.
2. My interest charges aren't that
much -- The average credit card debt is approximately $8,000
and if you keep your balance at that level for a year, with a high
interest rate of 21 percent, you are spending $1,680 in interest
charges in one year alone! Do it again and it will be $3,360 next
year and so on for the next 16 to 20 years.
1. Spending makes me feel free!
-- Revolving credit card or other debt is the equivalent of financial
prison. You have no choices as to how to spend your money because
it is already earmarked for debt payments that you can not escape.
The money you earn working today was spent last week, last month
or last year. How much better it is to have the freedom to choose
how and when you will spend your money. If you have not experienced
true financial freedom, you should. It is a peace-of-mind, worry-free,
knowing-you-have-done-the-right-thing kind of feeling.
Give yourself the gift of financial freedom.
Begin paying off your revolving debt today.
The
Debt Adviser, Steve Bucci, is the president of Money Management International
Financial Education Foundation and the author of Credit
Repair Kit for Dummies. Visit MMI
for additional debt advice or to ask a question of the Debt Adviser go to the "Ask the Experts", page
to ask a debt question. | 
