- Personal Finance»
- Managing Credit Cards & Payment Options
Living Beyond Your Means Will Bury You In Debt
How Much Debt Are You In?
You may very well be in debt because of living past what you can afford. Credit is such a huge way of living now a days. Some people are more responsible than others with it. Credit cards are meant for borrowing money, not free spending. Many people just see it as free money that they can just pay back later. Lots of people don’t even plan to pay it back. Having credit cards can be a scary thing when you don’t know how to deal with money. Do you find it hard to go to a store and not buy anything? I am a big shopper myself, and have gone through living beyond my means.
The key is to never spend what you can’t pay back the next month or even few months. If you put three months worth of your salary on a credit card continuously you will end up in big debt. You don’t want to spend more than you make. If you want to go on a vacation, don’t just splurge and put it all on a credit card. If you want to live that way, you must save up and reward yourself. If you live as if you make 100,000 dollars a year on a 50,000 salary, you WILL bury yourself in debt. Splurging too much can really add up. Soon you’ll be 10,000 dollars in debt and eventually it will get so high that you cannot even pay your bills. Living on a military salary, it is not easy to live the high life. I used to go out to eat weekly, and just go shopping with my credit cards too often. Luckily I did learn my lesson to not live beyond what I can afford once I was in too much debt.
I am sure we all wish we were rich and could spend anything we want, but for most of us that isn’t the case. If you want to avoid debt, you shouldn’t just close all your credit cards because it is important to build credit. Instead, you need to learn to be responsible with credit cards and loans. When you understand what credit is and the consequences of over using them, that is when you will be responsible with them.