Why Are You In Debt? (Part 1)
Posted by Gail | Filed under Debt Traps
Very often people who are in debt say they no longer want to be in debt. And very often they take the steps to get themselves out. Just as often, people who claim they want to get out of debt do little to change their behaviour and their outcome. They keep on keeping on doing the very things that got them into debt in the first place. If you’re in debt and can’t seem to find your way out, here are the first four of 15 questions you may want to ask about why you’re in the hole.
Do you buy STUFF you don’t NEED? The biggest cue that you’ve got the Impulse Monkey on your back are the things you have bought but not used: the clothes with the tags still on, the shoes you have yet to wear, the new dishes you’ve used just once or twice in the six months that you’ve owned them.
Impulse shoppers are the first to admit they have a problem and the last to do anything about it. If you’re an impulse shopper, you need to remove the fuel for the impulse. That means cutting up your credit cards – or disabling them in some other fashion – and limiting the amount of cash you carry. It also means leaving your debit card at home unless you’re headed out to take care of a NEED: gas, groceries, etc. When you do go shopping, you have to use a list and never go off-list.
Window shopping is torture for the impulse shopper so don’t browse stores or participate in this female bonding ritual since you’re just teasing yourself by drooling over a bunch of stuff you don’t need.
Do you use credit to buy things you can’t afford to buy with cash? Hey, when you spend money you don’t have by using your credit card, line of credit or overdraft, you’re doing the wrong thing plain and simple. If you can’t afford to pay for something in cash today, you should not be buying that thing, I don’t care how important you think it is, how great a deal you’re getting, or how desperate you feel. Using credit is no way to get out of debt. Put away all forms of credit and commit to building yourself a budget that balances. If you want something, you’ll have to give something else up to accumulate the cash you need to buy said item. If you can’t come up with the cash, you must not want that whatever badly enough.
Do you buy things for a one-time use that you could borrow from a friend or rent? Practically everyone is guilty of this. You need something like a sewing machine or power washer twice a year so you go and buy one and then watch it – and the money you spent, very likely on credit – sit and grow cobwebs (and interest charges?) What’s with us all? We have to own everything we ever use? In the old days friends borrowed from each other and stuff got way more use. Now our possessions are so much a part of who we are we a) hate to lend, and b) hate to have to admit we don’t already have one. Dumb! And why do we feel we need to apologize because we don’t have the right kind of wine glasses? “Sorry, I only have these cheap glasses.” It’s a glass for heaven’s sake.
Do you buy certain brands because they are a status symbol? While any car gets you from point A to point B, the high-cost brand-name buggies come with oohs and ahhs from friends and relatives. Ditto the D&G sunglasses, the LV handbags, the CL shoes… I could go on forever. If you’re paying a premium to have a brand name you have to ask yourself why. Is it because you don’t have confidence in your own sense of style? Is it because you’re trying to emulate the dudes and dames of TV and movie fame, wearing what they wear, driving what they drive, eating what they eat? How come? Is your life so sad that you’re trying to escape?
Hey, I’m all for spending your money on the things that bring you pleasure, so if you’re not using credit to make expensive brands part of your image, I’m not talking to you. But if you are using credit, what makes you think you have the right to this stuff if you can’t afford to pay for it?
Tune in tomorrow for three more questions you should be asking yourself if you’re in debt and can’t figure out why.
A couple of notes: The site has some new stuff up. Each month, there will be a couple new articles and tips, with a cue so you can find them easily.
If you haven’t voted in the poll yet, please do so. I’m very interested in the outcome of this one. You’ll be seeing feedback on these in the coming months.
And remember that I’ll be signing books at Costco this weekend. I’ll be in Ajax between 11 and 1 on Saturday January 9. Later the same day, between 3 and 5, I’ll be at the Costco in Etobicoke (50 Queen Elizabeth Blvd). See you there.
January 5, 2010 at 8:04 am
hmmm, very interesting article. I personally had to answer all those questions with a no. I’m in debt because I purchased land that I was going to build a house on, then moved away from it for work. so it sits unused. Yes I guess that would be like buying a power washer and then never using it. At least the land is on the market and I’m actively working on trying to sell it.
regards,
Jason
January 5, 2010 at 8:35 am
Ah, Gail. I do love that you have a way of making us sit back and think about it. I read this article twice. The first time through, I was thinking “I don’t do that…..I don’t do that….I don’t that”….but then hey, wait a minute….
Do you buy stuff you don’t need? My first reaction was to look around my sparsely decorated apartment and say, nope. But then, I started thinking about that extra coffee I buy at work, which I don’t need. And that newspaper. And that bottle of wine. They may be little things, but I didn’t really NEED to buy them. I’ll try harder in this area.
Do you use credit……again, I thought nah, I don’t do that, because I don’t splurge on big stuff like the PVRs and BlueRays and a new car and blah, blah, blah. But I did use my CC to buy pizza for my kids when I’m broke, and to buy alcohol over Christmas when I was broke, and stuff like that. Sigh. Another red mark. Definately gonna work on this one.
Do you buy things for a one-time use? Well, not really..because I don’t actually have a life, and I’m sad to admit I have no real friends. But then again, I did buy a couple of Wii games that aren’t being used, that I could have just well rented. And there are a couple of things in the closet with tags on…but that was from several years ago. OK, I’m not too bad on this one, but could be better.
I did pass the last one with flying colours, though. I don’t give a rats patootie who designed it, if I like it, I like it. Actually, I think alot of those designer clothes are rather ugly, and I’m pretty cheap when it comes to spending money on clothes.
January 5, 2010 at 8:37 am
I’m in debt because I/we allowed us to get there.
This year, with DH in school, we likely will not be able to reduce our debt very much, but our goal is not to incure any further debt unless it’s a necessity.
In the meantime, we are selling items we no longer require and putting the profit on our debt.
January 5, 2010 at 8:47 am
Chubby Bunny you make a good point about the video games. I haven’t indulged in a Wii yet. I’d really like one, but it’s not in the budget just yet. I never thought to rent the games. At least then you can make sure you really like the game and think you’ll use it before committing to purchasing.
It makes me sad to hear you say you have no real friends. I encourage you to get out and socialize. Volunteer, get involved in community things. It’s a wonderful way to meet people – then invite them over to play Wii !! I’m sure you’ll have fun! (((HUGS)))
January 5, 2010 at 9:15 am
I am the impulse person in our family. I thought I was doing OK but this month we sat down and did the budget. All of a sudden I realized how much I buy on impulse- like the trip to the drive through at McDs with the kids, or the “little extras” that end up in my cart. Since I started ( again!) tracking my expenses- I’ve noticed a definite feeling of “OH, I can’t do that anymore” and I thought we were doing well -I do have to say that one thing I’ve become addicted to is our library. I used to spend hundreds on books ( no- not kidding, I READ) I have only bought 1 paperback in the past 6 months-the DVDs we watch and the books we read all come from the library-
January 5, 2010 at 9:54 am
Do you simply not keep track of how much you spend?
It’s amazing how much we THINK we are saving, until we figure out how little, and more so on spending. We aren’t spending that much, ARE WE?
January 5, 2010 at 10:27 am
While I have never carried a balance on a CC, I did come fairly close for a while a few years ago. I more or less kept a running tally in my head then was sometimes surprised when the payment was more of my paycheck than I expected.
Now our budget is much tighter with everything being written down. Our family is a lot bigger now so the money has to stretch further. It can be done but it does mean really scrutinizing what is a need and what is a want. I tell you, I am getting very good at furnishing a room with milk crates.
January 5, 2010 at 10:29 am
I like the exercise that says on one side of the paper, write down what you bought and how much it cost. And then on the other, put the value you received out of it. So if you spent $50 on a gym membership this month and you didn’t go, put a -$50 on the right hand side. If you hired a cleaning lady for $200 /month, and you love that it saves you so much work, put a +$300 on the right. At the end of the month, see which column is more to see if you’re getting value for your spending. It’s somewhat arbritrary but interesting.
My wife is a huge impulse spender, and I’ve found it to be linked to her emotions — if she’s angry or hurt, she’ll go out and buy something to make herself feel better but it won’t work. So we try to talk more, and get her to relax and wait 48 hours before getting something, to see if she still wants it. It works about 50% of the time. My problem is that she makes more money than I do, so I don’t feel right trying to reign in her spending as tight as I reign in mine.
January 5, 2010 at 10:48 am
I only buy what I need and work off lists and researched expenditures if large.
That lists extends to the grocery store.
Fortunately for me(but not those that live with me!!!) I don’t live or buy on emotion or sentiment it will get you into trouble every time!!!
Thats includes birthdays and anniversaries.
I deal in cash only and assess thoroughly first
I also go in with a card and cash to see if I can walk out on a “buy”
So far passed the tests
January 5, 2010 at 11:03 am
Gail,
Do you ever travel up north? Would love to see you in Sudbury or North Bay!!
January 5, 2010 at 11:09 am
Food is our biggest downfall, especially because my partner likes to come along and when I get to the cash, there’s always something in there he’s put in because he’s just gotta try it!
But now that the holidays are over, I’ll reign that in a bit.
One area I won’t compromise on quality, and that sometimes means paying more, is my feet. I did try to shop for a new pair of black shoes yesterday (money saved up). My good, ten-year old italian leather pumps have really bit the biscuit – no more repairs will help them. But I gave up. If I’m going to spend a $150 on a pair of shoes they will not be made in China. I won’t put cheap crap on my feet – I’ll pay for it in pain or end up throwing them out after a year because they’re falling apart. And that includes “designer” label shoes since most of them are made in China now too.
But could you believe I could not find a pair of shoes not made in China? Actually, I did find a nice pair of italian leather pumps, but they were over $200. Guess I’ll have to save some more…
I like Geoff’s method to figure out value. I once paid $100 for an italian leather purse – an unbelievable amount for a purse at the time even during my happy credit card wielding days back then. But then, after 15 years, and 3 restitchings at the shoe repair store because it was such a great purse and the leather was perfect, it also gave up the biscuit. So in Geoff’s calculations, that $100 purse cost less than $10 per year for each year I used it – not a bad return on investment I think.
January 5, 2010 at 11:11 am
When I was in debt, it was because my roommates had run off and left me with the cost of fixing the flat when the lease expired. I had planned on having four pairs of hands to do it, couldn’t do it alone, had to pay the cost of having it done to the landlord.
That alone wouldn’t have led to debt if I had built up a real emergency fund. Instead, I had spent every penny I made and relied on an “emergency fund” in stocks which I could have sold only at 70% loss when I needed them. So, note to self: Even if you *have* the cash in hand: Emergency fund first, fun second.
January 5, 2010 at 11:51 am
Another thought provoking article, Gail. Re: borrowing instead of buying, I do use the library a lot but when it comes to things like mixers, vacuums, sewing machines I just don’t like borrowing from friends/family. Stupid pride I guess. And if the item breaks when I’m using it there’s no guilt.
January 5, 2010 at 12:05 pm
Gail one thing our neighbours are good at is borrowing. We have the ladders, next door has the snow blower (when it really comes down heavy), another has the air blower thingy (compressor?) to blow out the water lines for winter. It’s great as everyone doesn’t feel they are always the one lending out. Various littler tools too. Usually one of the guys has what is needed.
I’ve stopped going and browsing at malls but need to start to bring a list when I go to Costco. I can’t believe how many times I’ve gone there for something specific and ended up at home with a pile of clothes, cds/dvds etc that I didn’t intend to buy.
January 5, 2010 at 12:36 pm
@Melaniesd – check out your local library – we can borrow Wii games (and other systems), movies, cds, magazines, newspaper, audio books, etc. The games are becoming more popular but we can put holds on the ones we want and the library calls us when they come in. Not instant gratification like walking into Blockbuster but way cheaper!
January 5, 2010 at 12:56 pm
It was the impulse shopping combined with traveling that got me into debt. I have learned my lessons and can’t wait to get out of debt and never make those mistakes again. Next time I travel I will be paying cash and it won’t be until I am completely out of debt.
January 5, 2010 at 1:28 pm
I liken it to quitting smoking
I used to smoke, never inhaled really but in a service truck with coffee and young oh boy
wanted to ditch the habit so as I lit up each smoke when the urge hit I threw the pak out the window.
Did this to a tune of a few bucks, plus you had you had to stop and get another pak, so I never went back to the habit after the amount of dollars that went out the window added up quick.
January 5, 2010 at 2:40 pm
4 Simple words.. buy now pay later…. that was our nemesis.. not that we ever paid a dime of interest.. we always paid everything off before we paid any interest on the item.. I wasn’t stupid enough to pay 28% on whatever my purchase might have been..no but I was stupid enough to purchase something in the first place before I had the money saved and then have to make room in the budget to pay off the balance before the interest kicked in.. Problem was that my budget wasn’t set up for whatever purchase we had made.. so while I was paying off the buy now pay later , life was still going on ( as it tends to do) and things were coming up that needed to be paid.. and guess how those things got paid..yep credit…
I ignored the reality for a few years because I justified it to myself that it was ok becuase we never paid any interest to those cards.. ignoring the ripple effects to the rest of my budget.
We have stayed away from buy now pay later this year and imagine my delight when I actually have money in the bank to pay for the things we need to do.. those things that are sporadic and difficult to budget for in the month to month budget.. now I have a nice “planned” spending account that I contribute to each month that sometimes gets all used up and sometimes rolls over to the next month..
To my further delight it is Jan 5th … visa is at $0… LOC is at $0..there is money in the bank account and my wallet.. and we still enjoyed Christmas!!! what a great way to start 2010!!!
January 5, 2010 at 3:41 pm
I am in debt because I went to college and didn’t save for it first. Some would argue that student loans is not bad debt, but I personally think it is. Especially since the job I have now I didn’t need a college education for. I am hoping that one day it will pay off and move me up the ladder but we will see. I still owe 8900 and can not wait till its gone. If I was only paying at the rate or the amount that they set for me it would take me 5.5 years to pay off that remaining 8900! But I plan to have it paid off in 16 months and that seems like forever considering I have been paying my student loans for a couple years now.
Before I had my money ephihany a couple years back I was in alot of consumer debt. I was in alot of consumer debt because I thought that you could buy happiness. I bought a home theatre system to the tune of 3500 on loan, I bought a pay now buy later living room set and so on. Luckily shortly after all this came about I woke up and got second job and paid everything off within a year.
January 5, 2010 at 3:59 pm
I have a problem with buying food that I don’t need. Sometimes things will go out of date because I either forget that I have it or don’t use it. I have a fear of not having food, we had to use a food bank when I was a kid and it has freaked me out ever since. Anyone have any ideas on how to stop food hoarding?
January 5, 2010 at 4:17 pm
I fell off the stick to cash budget in the fall and it went from there.
We are now paying off a TV and Washingmachine with buy now-pay later.
Every month as we are now tight (of course), to pay off the amount before the interest kicks in (it will be paid off by April), and then, well, we’ll just put Christmas on the cc) . At least the credit card was paid off with the LOC so the credit card balance is 0. so now we have a line of credit that is not at 0 I’ve already started to look into what presents I can make for next year and to start planning the kids presents earlier oh yeh, and to make a savings line for Christmas.
I have to say I am not impressed with myself. I have been in trouble with debt in the past and do not wish to be so again. I have gone back to the jar system, taking my cc out of my wallet and into a special place. I still have my debit card, but if I find I can’t control it either, it will also go out of my wallet.
Better to wake up now then later.
January 5, 2010 at 5:35 pm
Holiday spending boosts debt levels.
Canadians start 2010 owing more than ever before as economy struggles to gain traction …
http://www.globeinvestor.com/servlet/story/GI.20100104.escenic_1418779/GIStory/
January 5, 2010 at 6:35 pm
Tess, anxiety about food has always been a problem for me – perhaps inherited from my parents, both of whom were Depression babies. Even now that she’s living in a large city on a comfortable income, my mother still overstocks food like there’s no tomorrow.
I have to fight the impulse to overshop every time I go to the grocery store. Before I put something in my basket, I ask myself whether I will use it within the week. In most cases, if the answer is no, I put it back on the shelf. Also, I have begun planning weekly menus so I have a better idea of precisely what I will need, especially produce, which I have vowed not to waste. I learned not to stuff my fridge, so it’s easier to see what needs to be used up.
I do stock up on some items that are exceptionally well priced, and that will keep well in the freezer (it’s not often I find Lindt 90% chocolate at $1.87 a bar!). I’m lucky that I live in the city, though; if I were in the country, I have no doubt I’d have the overstuffed pantry from h*ll.
All in all, it’s about trusting that my needs will be met. Unlike many people, I’m lucky enough to live in a situation where I can be reasonably sure (knock wood) I won’t go hungry – it’s just convincing myself that I’m no longer that scared little girl whose parents are struggling to put food on the table. It’s an ongoing battle, but one I’m winning more often these days.
Best of luck to you!
January 5, 2010 at 6:43 pm
@ Tess – try volunteering at your local food bank. It is a way to help other families, as well as to see the true value of food – and you’ll be surrounded by food, which may help you feel secure.
You could also try starting a garden (or a herb garden on your kitchen windowsill) which has helped some food hoarders, as you can ‘hoard’ food in your garden all year long.
January 5, 2010 at 7:35 pm
Thanks for the tips. I’ve actually been thinking about helping at the local food bank, the thought of stocking shelves somewhere else appeals to me. I’m going to try to use the food up that I have and only go to the store for fresh foods. This has been a life long problem for me, whenever I get under stress I buy way too much food.
Thanks
January 5, 2010 at 8:21 pm
I have to admit that I am guilty of all of those.
To the one who mentioned decorating with milk crates, lol, I’m a big fan of them too. Have you ever had a milk-crate sofa?
Also, one of my favorite finds was a pair of very heavy old drawers that a friend picked from a dumpster. Once painted, they have ben used as seats, coffee tables, stacked as shelves, and right now side by side as a tv bench.
I have trouble using up fresh vegetables, too. My fridge is where veggies go to die, so I’m trying to work on only getting what I will actually use and get frozen fruit and veg as well.
January 5, 2010 at 8:28 pm
would love to get a book signed but too cheap to buy one ha ha. i always do my reading at chapters and enjoy a latte instead of purchasing the book!!
January 5, 2010 at 8:40 pm
Sharon- no I have not had a milk crate sofa but I did have a milk crate office chair. The desk was a large monitor box. This is where I studied in college.
Tess- you could buy canned goods. They’ll keep forever, you can store them anywhere and you’ll feel “safe” because you have food available.
Geoff- I beleive that if you’re married it’s “our” money. If your budget is balanced and the bills are paid, have an allowance for each of you to spend willy nilly and guilt free. If it makes you feel better, her allowance can be bigger than yours.
Megan- good job on paying off the loans sooner rather than later. Even though your current job does not use your education, I believe that education is never wasted. I’m sure you picked up some skills and knowledge that you can apply to a work situation, like if you started a study group then you have leadership and management skills.
January 5, 2010 at 9:02 pm
Hi Gail, I’ve been following your shows last year and kind of missed it.
Yes, I’m in a very deep debt and that’s why I searched for you and managed to get to this website.
My answers to the questions above : Yes, and I’d like to stop now.
I kept track of my sepnding late last year and went off track when I had to pay for unseen expenses like car accident twice. Gosh, I was so sad to see my cash went out just like that.
Please input more articles as I really love reading them.
Thank you!
January 5, 2010 at 9:28 pm
@ Tess – love the idea of you helping out in a food bank. Take most of your food stash with you and donate it – it will make you feel great!
Why am I in debt? That is the $64,000 question. It started slow and then snowballed. All of us here can relate.
The second part of the equation is – now that we have admitted our foibles…we are all getting on the right track to correct the situation PDQ!
January 5, 2010 at 10:34 pm
Chubby Bunny, I like Melanie d’s suggestion. You have been through the ringer with ex and the kids (all six of ‘em – you’re my hero!!!!) and it saddens me that you don’t have a friend support system (I don’t recall you mentioning parents, siblings to count on???). So its time for “YOU!” to take action.
Get yourself out there, take a class at the library, do some volunteering in some areas that interest you—it’s amazing when you give of your heart and you can get back so much more. I think this should be your new years resolution (aside from the financial ones we’ve all made)- to do some things for yourself (doesn’t have to cost money – fix a nice meal and eat by candlelight, enjoy a long bubble bath, etc, etc) and get yourself out of the apt beyond just going to work. It’s important for you to have some real friends, at the very least some folks you can meet socially (cheap coffee). I think this could be a good way to make some of those connections and start to feel a little happier as well. Also taking a walk clears the head and makes you feel 100% better than when you started…
Take good care Chubby Bunny. My experience has taught me that when you start taking care of yourself, all the other stuff falls into place. And remember – YOU ARE THEIR MOTHER, no one can ever take that away from you. Make sure they know how much you care and love them. My mantra for the rough times “Tomorrow is another day”
Big Hugs
Lisa
January 5, 2010 at 10:48 pm
Tess – try donating to a food bank yourself. If you can see yourself as a person who has enough food to actually give some away to people who are more needy than you are, perhaps you can stop hoarding. Another idea is to take the doors off your food cupboards so you can always see the food. Also, write out weekly menus and post them on your fridge so you are always quietly reminding yourself that you are going to be eating every day. Hope these ideas help.
January 5, 2010 at 11:09 pm
Lisa M and Melanie D – you guys are absolutely right. I do need to take better care of myself. I do take daily walks in the summer/fall – I’ve got to admit though that I’m a big wimp when it comes to winter. It’s funny that you suggested volunteering, because it is something that has been at the back of my mind for a while now. I promise that I’ll look into it. Soon.
In the meantime, though, I’ve realized tonight that I’m turning Gail’s website into my personal pity-pot, something I never intended to do (sorry Gail!). So I’m going to do my very best to turn my comments on here back to the financial issues, which is pretty darn important regardless of which way my courtdate goes next week. I’m $12000 away from my consumer debt freedom, and I can’t wait to come on here and announce that I’ve achieved my goals! If anybody would like to chat though, my email addy is bobolink69@hotmail.com.
January 6, 2010 at 6:37 am
Chubby Bunny – have some hugs all the way from Scotland! I’m an expat Canadian, and I know how tough it can be not knowing anyone. We just moved 300 miles north in the fall, and it’s the second time in 4 years I’ve had to start all over again. I highly recommend volunteering. I wrapped presents at the mall this Christmas, and met all kinds of lovely people.
I do love hearing everyone’s stories and encouragement – it is always a lift to my day.
January 6, 2010 at 2:57 pm
Hi Gail,
I just found your website today and it could not have come at a better time. My husband and I are in incredible debt, and have been trying fruitlessly to get out.
We do live in a small house (townhome) but we have 2 small boys with another on the way, and a dog..so we are feeling the crunch of the space without a back yard, basement, or a playroom/office.
There is a hiring freeze here and my husband doesn’t make close to the amount to make our expenses, and that is BEFORE debt payments, so we quietly sink into debt more and more and more every month. We are kind of at the end of our rope…I am hoping that I gain some insights from your articles, blogs and followers.
The answer for us is to bring in more income, but it is an impossible situation.
Thanks for having this blog available.
Alsiha
January 8, 2010 at 2:48 am
[...] with New Year’s Resolutions, Gail Vaz-Oxlade asks the tough questionWhy are You in Debt?, in fact this is the first of a group of posts. Don’t go over expecting to be treated gently, [...]
January 8, 2010 at 6:15 pm
@ Tess
I understand what you said about food hoarding based on food bank use in the past. My family went through that for several years in my teens and it has stuck with me for all these years. I too fight the hoarding/buying in bulk and then wasting pattern.
I decided mid 2009 that I would donate generously to every food bank request that came around. This kept it from getting to the best before date and I felt good giving back.
I have also been very consciously using my pantry reserves lately and only buying packaged foods if I am out of that particular item. It is amazing how much we store in our homes!
I found just being aware and honest about the pattern and why was the most effective way to control my behaviour.
January 8, 2010 at 10:59 pm
I’ll never forget Gail telling a man on the show that nothing mattered less than the car in your driveway. That’s so true.
You can save money on gas by changing your driving habits:driving tips.
Use the money you save to pay down your debt!
January 9, 2010 at 12:06 pm
[...] and a Tutorial! (pretty cash envelopes for all you crafty types) (ahem) Gail Vaz-Oxlade: Why Are You in Debt? (Part 1) WiseBread: Contributing to a Roth Versus Paying Off Debt Wallet Pop: New Year, new allowance [...]
January 10, 2010 at 12:43 pm
I have a bit of debt that I feel I shouldn’t really have; most of it is related to my aging car that I felt I couldn’t afford to replace at the time, and the repairs needed were very expensive. I also bought things I really didn’t need but wanted…and I prob should have given up my latte habit yrs ago. A tea bag, or cocoa mix & my travel mug work just as well.
If I’m honest, I think that my impulse spending moments have been in direction relation to feeling bored and not having something more productive to do with my time. I now spend far more time in my garden (obviously not at this time of yr), cleaning my home, baking bread, and doing other simple domestic tasks which make life a little more pleasant, as opposed to running off to the mall to buy something that I gave no thought to – prior to walking inside the mall doors.
Also, for the person who said they didn’t have a huge support system – you’re not alone. I think a lot of us sometimes feel that way, but when we really think about it…it might due to not reaching out to family, friends and neighbours as often as we should. Libraries generally have book clubs and other types of meetings where you can get to know other folks.
I think it helps us keep on track when we have friends/mentors who are good role models, and are working towards or already enjoying a comfortable, debt-free lifestyle. Positive reminders such as notes or pictures on our fridge, mirror, whatever can help encourage us to stay on track. I have a friend who has a screen saver image of a goal on her compt, which is a daily reminder and helps keep her focused on where she will live when she retires.
May 2010 bring everyone a peaceful, prosperous and debt free year.
January 12, 2010 at 2:44 pm
Why am I in debt? Can you believe, because I am a nice person? My credit score has always been excellent, and when I met my husband-to-be three years ago, he had been saddled with a lot of debt from his ex-wife and his divorce. So, I ran his credit report and helped him face his credit score. I had a substantial amount of savings, which went to paying off some of this debt. I also helped him by providing a down-payment for a house. He would never have been able to purchase the house if I had not helped him get his credit score up.
So now that I am in financial need, my reserve savings are gone. And I have no-one to blame but myself.
So, sometimes being a nice person and trying to help someone else is not the answer. Take care of your own needs first and foremost.