Stop Giving Yourself So Much Credit

There are days I feel like a broken record (and you probably feel the same way) but I’ll say it again: our goal should be to live as debt free as possible.

Recently, I read about how American credit card debt has just gone over $1,000,000,000,000 (one trillion dollars) for the first time since 2008.

This article had a bothersome statement:

With consumers feeling better about the economy, the amount of money borrowed has reached its highest level since the Great Recession.

 It implies that when someone feels good, they buy things they can’t truly afford. It’s not that Americans are relying on credit because of emergencies, it’s because times are good and we feel good.

 Maybe this applies to you, maybe it doesn’t. But, the way you feel should not dictate your use of credit. In fact, you should leave feelings and emotions out of every financial/buying decision such as purchasing a home, selling a stock, or even buying clothes.

Borrowing is what led to the 2008 collapse, an event that caused many of us to “tighten our belts” and reduce spending and expenses. It appears that enough time has passed and we’ve forgotten the feelings of uncertainly and angst that the financial crisis brought. Don’t fall victim to overspending.

One more thing: it’s time for the adults in the room to do their job and stop letting their kids take on astronomical amounts of student loan debt. That number just crossed over $1.4 trillion with an average balance of just under $35,000.

Is it possible to attend college and leave debt free? Of course it is: ASU costs $10,792 a year. Minimum wage in Arizona is currently $10 an hour. Working part time, 20 hours a week, for 50 weeks earns your kid $10,000 a year.

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