Tuesday, March 13, 2012

10 Lies That Keep You In Debt - Part 2

So, the list of the lies that keep you in debt continues. Whether you’re just beginning on your journey toward financial freedom or you’ve declared yourself a certified personal finance sage, I’d almost guarantee you’ve had to say at least one of these to yourself at some point. . . . Well, I know I have!

As a reminder, here is a review of Part 1:

1. I deserve it.
2. But, this is an emergency. . . isn’t it?
3. It was on sale.
4. A couple bucks won’t hurt.
5. If I made more money, this would be easier.

6. I’ll start next month.
I love when people tell me they are going to start paying down debt in the New Year or after this event or that time passes. Here’s the problem: Something important or necessary will always be going on! So, what are you really waiting for? It’s easy to talk about change, but when will you take action and just start already? If you don’t start today, years may go by and next month will never come.

7. I don’t make enough.
One of the lines I hear most often is, “I can’t afford to save, pay down debt, blah, blah, blah.” The line I typically offer back is, “You can’t afford NOT to save!” The very folks who believe they can’t save, somehow manage to give the bank $34 per overdraft fee each month or $29 for late credit card payments. I’d venture to say, if you can pay the bank money every month involuntarily, there should be a way to squeeze out a few bucks to give the bank voluntarily. I don’t care if you start putting an extra $10 towards paying off your debt, you have to start somewhere and you have to start TODAY!

8. I don’t know anything about money.
I’m sorry. Is that still supposed to fly these days? With Google at your fingertips, I’m not sure you’ll get any sympathy on this one.  You don’t have to be an “expert” to know that if you owe someone, anyone money, then they probably would like it back.  We’re not talking about investing here. We’re just talking about paying debt off so that you can reclaim your financial dignity. No more harassing phone calls, money saved and greater options in case of an emergency.  

If you really are just feeling overwhelmed by your debt, reach out to professionals. This is no time to be shy, ashamed or proud. Check out this list of Approved Credit Counseling Agencies by state on the Justice Department’s website.

9. I have good debt.
Where did this ridiculous rumor originate? Despite what you heard, student loans and mortgages are NOT good debt. There’s no such thing! The best debt is the debt you don’t owe anymore!  If you’re only keeping your mortgage for the tax write off, try this: give more to your place of worship or favorite charity.  You can write that off too without all the additional wasted interest payments!

10. It’s for my business.
Now, this is a favorite.  I speak to people all the time that swear they are buying things for their business on credit because when the business blows up, they’ll just pay all the debt off. Let’s check this logic. There are tons you can do to prepare for your future business without buying merchandise upfront for the store front you don’t own yet.  How about working on your social media strategy or developing your business plan.  If you’re already in debt, adding additional debt under the “It’s for my business” banner does NOT give you a pass, my dear.

I hope these 10 Lies have woken someone up!  It’s time to get real about our finances and stop lying to ourselves.  The sooner we tell the truth, the sooner we will be able to take charge and slay our debt once and for all!

For daily finance tips and inspiration, follow me on Twitter: @SeekWisdomPCW

Until Next Time,

Seek Wisdom, Find Wealth & Be Blessed!


Mike M said...

Right on right on!

Anonymous said...

We appreciate you moral support. I stumbled upon your current first point to end up being best .