How To Get Out Of Nagging Debt
Wednesday, May 6, 2009, 7:05 AM | Leave Comment
MSN.com ran a story “Get out of debt – on $26,000 a year” by Karin Price Mueller. The story is about “nagging debts, begun with a credit-fueled spending spree in college, are keeping a hairdresser from her dreams. But there is a path out of the red.”
Excerpts from the interview:
Today, the 37-year-old single hairdresser pays her new bills on time, without fail, and has no credit cards. But she’s made big money mistakes in the past, leaving her with about $3,000 in ancient bills, some dating back nearly 20 years.
Despite her desire, Hunihan doesn’t see how she can whittle down her debts. After paying her essential bills each month, she has little left from her $26,000-a-year income beyond some spare change for dog and cat food.
Two things caught my eye which she believed in while she was in college and right after she graduated – I assume she graduated:
- Credit cards: ‘Like money from heaven’
- ‘I always thought that the bills could wait’
Karin has some excellent advice for Hunihan. By following the advice, she would eventually get out of debt, hopefully sooner than later.
My comment about the story is the same as what I keep saying on this blog. I would remind again. When you use your credit card, you borrow money. You rent the money. Anything in life, whatever you borrow or rent, you must be able to return it, whether it’s money or a lawnmower or a truck from U-Haul or Ryder.
One thing I never understood is when some people use their credit cards, why do they think that it is free money. Like her second comment ‘I always thought that the bills could wait’. What? That should be your first priority.
Change your mindset before you use your credit card. Change your lifestyle. We all must realize that we have to take steps to improve your credit score after you Get your free annual credit report right now.
In a Nutshell
In my opinion, for so many years, Hunihan acted like what I call a schmuck. She has come to her senses now. But why should anyone fall into the credit card trap. In college, in one day, she got five credit cards. Did she need all those cards?
She went on a shopping spree like her mother. For heaven’s sake, she was going to college to better her life financially. But instead, she got into financial ditches and nastiness of the worst kind.
Wake up, America. What you borrow, you must return. What you rent – that’s right you rent money – you must return. If you can’t return it, don’t rent the money. We must get it through our thick skull. Don’t be a schmuck!
Read the story in full: Get out of debt — on $26,000 a year.
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