Debt is a Freak Show

Avoid debt at all costs. Read on to learn about how quick decisions to get into debt can cause financial disaster.

I can not stand horror movies. I already know something dreadful and destructive will happen. It is painful for me to even watch. The characters in the horror movies are creepy and freaky. I fear for the victim. Doom always happens in the horror movies and it turns into a freak show. I feel the same way about debt.

Debt is a pending bill or charge that some one is committed to repay. Many have debts that are manageable, such as home or business loans when there is a consistent stream of income. Some debts are unnecessary, such as car or credit card. Debts can be unmanageable when a consumer has no means of paying them.

So debt becomes a freak show when you impulsively charge multiple items with limited or no means of repayment. There are presently 77 percent of American families that have some type of debt. It is known that 37 percent of families have credit card debt. One out of six families can not pay their monthly bills. Almost thirty percent of families are barely getting by and could not fund a health, household or car emergency.

Debt becomes even freakier when consumers do not adjust their high standard of living when they already have mounting debt. It is scary to think of bill collectors harassing you and possibly bankruptcy. Debt keeps many bread winners awake at night and they fear not being able to care for their family and themselves. Debt causes many losses and interferes with dreams , like home ownership and retirement. Borrowing money is not free and it comes with various amounts of interest tacked on to amount. As I write this , there was a warning from the Federal Reserve that interest rates will be rising .

So how can you avoid the freak show of debt? Do not commit to charge anything you know you can not repay. Start an emergency fund savings account of at least $1000. Pay cash for emergencies. Budget for extra and essential expenses and pay cash. Look for opportunities to increase income to pay off debt quickly.

Extra income can come from overtime pay, side hustles or selling items that are no longer needed. Some people in debt temporarily cut back on extra activities in order to pay off debt quickly. Debt free living is financial freedom and it is possible for everyone .If you would like to pursue debt free living, schedule a season with me at www.peacefullifefinancial.com.

Karen Skelton Money Coach