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Dont Trade Your Future for Todays DooDads
"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You
Deserve the Car Today and We Can Finance It for You," &
"Spend Today, 0% APR until Next Year!" We see those statements
above every where today, on TV commercials, car dealership, banks
and magazines. Those statements have put a lot of people into a
financial disaster, because the statements make a lot of people
believe that acquiring bad debts is an ok thing to do.
One of the main reasons why a person gets into a financial
disaster is because he/she can't wait when it comes to buy the
things she wants. They keeps buying doodads and liabilities
(things that lose values/luxury that goes beyond your current
means) because they have no control of their spending habit.
For example, I have a friend who loves to use her credit cards
to buy jewelry when she is depressed! Today she has over $20,000
bad debts. Every month, she can only pay off her interests from
her credit cards only! Her office looks nice and well decorated
but her financial statement looks very grim. She only lives from
paycheck to paycheck to pay her debts.
Another example is if you buy a $500 computer with your credit
card that has 18% interest, within a year you will pay
approximately $300 interest from your card if you only pay the
minimum payment every month for 12 months. A $500 computer + $300
interest = $800. So you pay $800 for a $500 computer. That's not
very smart move to make. Someone who is smart won't pay $800 for
a $500 computer! In a year, that $500 computer won't even sell
for $500 anymore on eBay or a garage sale.
A luxury car is another good example, a friend of mine decided
to buy a luxury car because he thought he could afford the
monthly payment, but what he didn't realize was, a luxury car
requires a luxury maintenance cost! It's called the true cost of
owning a car! The month payment of a car is not the true cost of
owning a car! Go to edmuds.com to find out the actually true
maintenance cost of your car. The car that he bought ended up
owning him. He had to pay the repair cost, gas, waxing it,
cleaning it, and other maintenance fees. Don't even think of
owning a luxury car is you can only afford the monthly
maintenance.
So this is the wisdom key that I want you to remember "Don't
Trade Your Future for Today's Doodads." It's not worth it &
wise to buy something that will lose values by using your credit
card. Think long term instead of short term. Think of what will
happen with your financial future before you buy things on
credit. Think of the amount of the interest that you will pay to
the credit card company.
The next time you're tempted to buy liabilities or thing that
you know that you can't afford yet, wait, take the time to wait!
Say this to yourself "I will not trade my future for today's
doodads."
Go to www.pebden.com to find more information about financial
education products.
© Copyright Pebden.com 2005, All Rights Reserved.
Entjik Jeffrie
MORE RESOURCES:
Clock ticks down on credit bureau class-action dealIndianapolis Star, United States - 46 minutes agoIn a class-action settlement, credit bureau TransUnion has agreed to provide free credit- monitoring services to millions of consumers to settle claims it ... |
MORE COLLEGE CREDITChicago Sun-Times, United States - 10 hours agoDespite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ... |
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