Ten Reasons To Stay Debt Free

Ten reasons to stay debt free! What is debt and what would happen if we didn't get it under control? Are there really consequences to our overspending?

We are the working class. We are the people who work paycheck to paycheck, just to get by. And, because we work hard, we feel we deserve to have nice things, when we want them. However, this type of thinking is what causes us to incur debt.

But what is debt really and how does it affect us? Debt is the inability to pay our bills, in full, at the end of each month. We have debt when we purchase a new car, new home, new furniture, and/or use credit cards and plan to make monthly payments. In time, those monthly payments require all of our paycheck. So we work overtime to have some extra spending money, and pay a little extra on a bill or two. But every time we think we are going to be able to get ahead, we are hit with some other unexpected expense, but this time, our credit cards are maxed out. But we have to take care of this unexpected expense, so we go out and open up another credit card. And the vicious cycle continues.

Are there really consequences to our overspending? Could it cause illness, stress, even divorce? Could it prevent our kids from attending college or us from retiring early? The answer is a whooping, "yes."

It's up to us, to figure out if our spending is spinning out of control and if it is, how we are going to begin managing it. If our debt becomes out of control, the following issues can occur:

1. Divorce: Finances are the number one cause for divorce in American today. Take time to stop and think how many times you have fought over bills or not having money to purchase something one of you has wanted.

2. Stress: Debt causes undue stress which can escalate into many physical as well as mental health problems.



3. Dreams: Debt has a way of taking away our dreams. The more debt we incur, the less freed money we have to follow our dreams.

4. Repairs: Debt has a way of preventing home maintenance and auto repairs. Once those cards are maxed out to the point that your monthly expenses (out) equal your monthly income (in), we won't have the money for repairs when something breaks down (washer, leak in roof, auto, etc).

5. Life: Debt prevents us from enjoying life. We end up spending half our life working to pay for the interest on things purchased in the past. The pleasure of that item has long been gone, and resentment begins to set in. And should we decide to sell that item to relieve some of the financial pressures, the item is now worth less than half of what you paid for it.

6. College: Debt has a way of preventing our children from attending college. Just think of all that money going out in interest each month. The average American household has an average of $100, per month, in credit card interest alone. Just think how well that money would do sitting in a mutual fund for our child's education.

7. Illness: Debt can cause physical illnesses in the sense that the more debt we incur, the less money we have to purchase proper groceries, which means that we are no longer eating healthy, which in turn allows for minimal to very serious malnutrition issues.

8. Retirement: There are rumors going around that social security will not be around much longer. And, even if it were, the measly $500 per month they give you is not enough to live on. If we could take some of that money that we are paying out in debt each month, and apply it our retirement fund, we could have a nice little nest egg when we retire.

9. Relocation: Sometimes, people want to move. Whether it's to a nice neighborhood, a different state, to be closer to family, or even to a bigger home. When debt is in the driving range, it becomes difficult to look for another place for fear of losing that well-paying job or not being able to afford the move itself.

10. Elder Care: How often do you hear of horror stories of older people dying from improper care in nursing homes? What would happen to our parents should the time arise that they could not longer care for themselves? What if they don't have the money for caregivers? If our debt is too high, this added financial burden would be too much.

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