CAN YOU LIVE WITHOUT USING SOME FORM OF CREDIT?
Most people cringe and get very uncomfortable about acknowledging they can’t handle money and debt!
Chances are, if you’re an average Canadian, you will find it impossible to get through even one month without using a credit card, overdraft protection or a line of credit. Try it!
Credit has become an insidious economic reality for most people. Do you feel embarrassed to admit to friends, family, and even to yourself that you are in debt? Most people do! It’s like being an alcoholic we find excuses – “one glass of wine a day is healthy”.
In fact scientists seem to suggest that there are chemicals in wine that are healthy but that alcohol breaks down liver tissue and repeated use is extremely unhealthy. Some of the good chemicals found in wen may be found in grape juice or seeds and they are being synthesized for non-toxic application.
“I only use my overdraft between paycheques” or “the reason I use my charge card is to get points” are silly excuses for lack of adequate budgeting. The first excuse tells me that you can’t manage your money and the second that you are incredibly naive. Points cards such as Air Miles track spending habits and log those against the demographic data you provided on your application form. And the point awarded on credit cards come at a cost – you pay for them!
Like being an alcoholic crediholics (it’s a new word I just made it up) live in denial. Guys at work have no problems talking about their life “hey, did you get lucky last night” and talking bravado about a bad night on the booze “dude, I drank too much on Friday night and was hung over all weekend” (they don’t mention the half dozen beers they had every other evening) but talking about debt?
Conversations about debt are far more taboo than just about any other topic. How about it – give it a shot! Walk up to a colleague and say “when was the last time you paid off all your debts?” See what reaction you get!
O.K. so buying a house or buying a car may require some form of financing – but going out for lunch? REALLY!!! You have to finance lunch until the end of the month? Are you that broke? Try saying something like that to a colleague when you see them whip out a credit card! Have some fun! Even worse are people who buy groceries on credit (or overdraft).
Try putting your credit cards away for three months – don’t use them for anything. Pay up your overdraft and see if you can stay out of it the whole time. You’ll be glad you did and you’ll start to feel good about your finances. You may have quit smoking and one or two other bad habits but can you get off the credit habit? It’s hard to break and there are pushers (banks) everywhere advertising to make it sound glamorous.
Getting out of debt is easier than you think – staying out of debt will take a lot more effort!.