Living Beyond Your Means ??" A Very Common Trend
It is a very common practice for people to buy things that they don't have the money to pay for. They may charge it and then find themselves in debt for months or years trying to pay for it. Or they may play the game of beat the check to the bank. This is the common trend of living beyond ones means.
We all know how much money we are going to earn each week, each month and each year. Our paychecks are not a surprise to us when we receive them. Nevertheless, people continue to spend more money than they make.
Marketing and commercialism add fuel to the fire. We already have the tendency to want more than we can afford and to want it right now. Commerce makes that all too easy with offers of 12 months same as cash or no payments for 2 years. These kinds of offers make it so tempting to spend money we do not have. When the payments come due they are often impossible to handle.
Another danger is the misuse of credit cards. It is so easy to buy everything we want just by swiping that little card. However, we never factor into our monthly budget how we are going to pay for that purchase. We didn't have to give any cash away to get it and we don't even think about the expense again until the statement is due.
Once you pay the other bills, there won't be enough to pay the card balance so you pay the minimum. An unpaid balance on the credit card results in a larger balance next month even if you don't charge anything else.
Most people are not interested in learning how to better their finances. They find themselves faced with filing bankruptcy which is a terrible blow to their credit. There are financial advisors available to help people learn to better manage their money. However, very few people avail themselves of these services.
Carrying a certain amount of debt has become a status symbol. Everyone else has debt so why shouldn't I? People are not pressed to get rid of their debt. As long as they can pay minimum balances it doesn't seem to matter that it will take five years and several hundred more dollars to pay off a credit card.
As long as there is a credit company or store willing to extend more credit, the problem of overspending will continue. How we handle money affects the next generation of consumers. They learn from watching us. What are we teaching them? - 16931
We all know how much money we are going to earn each week, each month and each year. Our paychecks are not a surprise to us when we receive them. Nevertheless, people continue to spend more money than they make.
Marketing and commercialism add fuel to the fire. We already have the tendency to want more than we can afford and to want it right now. Commerce makes that all too easy with offers of 12 months same as cash or no payments for 2 years. These kinds of offers make it so tempting to spend money we do not have. When the payments come due they are often impossible to handle.
Another danger is the misuse of credit cards. It is so easy to buy everything we want just by swiping that little card. However, we never factor into our monthly budget how we are going to pay for that purchase. We didn't have to give any cash away to get it and we don't even think about the expense again until the statement is due.
Once you pay the other bills, there won't be enough to pay the card balance so you pay the minimum. An unpaid balance on the credit card results in a larger balance next month even if you don't charge anything else.
Most people are not interested in learning how to better their finances. They find themselves faced with filing bankruptcy which is a terrible blow to their credit. There are financial advisors available to help people learn to better manage their money. However, very few people avail themselves of these services.
Carrying a certain amount of debt has become a status symbol. Everyone else has debt so why shouldn't I? People are not pressed to get rid of their debt. As long as they can pay minimum balances it doesn't seem to matter that it will take five years and several hundred more dollars to pay off a credit card.
As long as there is a credit company or store willing to extend more credit, the problem of overspending will continue. How we handle money affects the next generation of consumers. They learn from watching us. What are we teaching them? - 16931
About the Author:
Tire of struggling to keep up with your credit card payment? Learn some simple credit card tips on the Debtopedia website. Get a free copy of my report "Secrets Of Credit Card Debt" at http://www.debtopedia.com
posted by Edgar at
01:32
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