Debt indicates discontentment
In addition to impatience, I was discontent with the results of my poor financial decisions up to that point, so I used debt to ease my covetous heart and to buy the things I wanted because I didn’t like the things I already had. Vacations, clothes, cars, you name it, I wanted to appear better off financially than I was at the time and I was willing to pay the interest to make myself appear successful.
Debt indicates poor planning
I’ve charged tires and transmissions, vacations and vet bills, clothing and car repairs, insurance and ice cream, and why? Because I didn’t prepare for those expenses by having an emergency fund or by making small monthly “payments” into a dedicated savings account. It was poor planning, plain and simple and debt with interest charges was the result of my failure to plan.
Debt indicates short-sightedness
How much would I have today if I had waited until I had the money, learned patience and contentment, and planned a little better? It all boiled down to my own shortsightedness. You may have read how I paid off over $120,000 in debt (true story) but the sad fact is that I went that far into the hole in the first place. The amount of interest I’ve paid would probably make me sick if I added it up.
But guess what? I still use debt! (though begrudgingly)
I just refinanced my house at 4.75 percent … why? Because of reason #1 – I don’t have the money to pay it off … yet. Since I have no other consumer debt than one small student loan (which I am attacking), my cash can be used to pay down the principle of my mortgage and free me from the burden of debt forever. I gotta tell you – it’s a good feeling to be THIS close!
Photo by Kath Walker Illustration