The Truth of Credit

When you read headlines such as, “Consumers increase borrowing in June”, do you feel guilt because you are included in that statement or do you judge those who spend so irresponsibly?

The headline highlights thousands of people who have given up trying to save and are falling even further into debt as they use their revolving lines of credit to furnish their lifestyle. No one is very bullish on the economy lately but here is more proof that there is a very big issue that needs to be resolved.

Finances and you: Are you a cheap or foolish spender?
A cheap spender is someone who is very prudent with money and will deny themselves or others very little pleasure from the money that they have. On the contrary, a foolish spender will shower friends and family with lavish gifts even if it means going into debt.

The debt cycle: So why can some people save and others spend frivolously?
Money habits usually start with your parents. If you were brought up in a household where it was important to count every penny, then it is likely you are still careful with money and will probably still stay this way even if you win the lottery. On the other hand, if you came from a family background where you were often showered with gifts to make you feel special, it is likely that you will continue spending money to use as an emotional crutch.

The TRUTH is this shows that for everyone, debt is always at the back of the mind and it is important not to judge others for their financial position as they may not always be the ones to blame. Whether you are a cheap spender or a foolish spender, you can change the way you spend money. Start today to treat your debt like a Fortune 500 company does. Resolve to improve your personal balance sheet. Would you invest in you given your current financial shape?

If you enjoyed this post, make sure you subscribe to my RSS feed!