(part one is here)
I am even using the same photo.
You can check part one of Will You Ever Get Out Of Debt? here.
After not knowing how much you owe, making only the minimum monthly payment, and, too big of a mortgage, we get to #4 Student Loans
With 1.4 trillion, yes, trillion, dollars of student loan debt out there, this would be my number one.
Not as impossible to deal with as they would have you believe, see my other blog, www.dischargestudentloan.com, but, a lot tougher nut to crack than mortgages and credit cards.
A crushing debt burden that falls disproportionately on the young.
#5 You can’t say no to your kids
Hey, don’t train them to spend more than they earn!
Again, we make decisions based on our emotions, and it provides instant gratification to buy them something they want, and be rewarded with that “you’re the best Mommy in the world!” reaction.
Is that their college savings you just spent?
Or the house payment?
#6 No emergency fund
So you may be current on everything, even, paying off your debts.
But, what if something happens?
Something is always happening.
You can avoid that, if you have an emergency fund.
#7 You feel a sense of entitlement
Read more at http://www.kiplinger.com/slideshow/credit/T025-S001-reasons-you-will-never-get-out-of-debt/index.html#pD6Rf3s9SAm0yAJk.99
The article says stick with the average car loan, 5 years.
In the 1960s, car loans were 24, maybe, 36, months.
The industry had a term: “the equity month,” when the car would be worth as much or more as the loan.
Don’t need that one anymore!
I have a 3 year pre-paid lease.
Over my miles now, but who knows what pull ahead programs they will have by the time it is up 2 years from October.
Anyway, NO monthly payment for me.
You can save(?) and pay cash for a decent used car.
Here in Detroit, we have the highest car insurance rates in the country. Which adds on to the cost of that car.
And don’t trade in that negative value from the last car loan/lease.
I had a client who owed over $70,000 on an SUV, 15 for the first one, another 15 left over from the second, and 40 for the new one.
That is not saving.
#9 You rack up late fees
You have to work to do this now, set everything up for auto pay from your bank account.
#10 Your interest rates are too high
Some debt, like mortgages, can be re-financed.
And you can bounce from one credit card to another with zero per cent on cash advances.
But be careful with that one.
Bottom line: write down your monthly budget, keep track of what you spend, include savings as a mandatory expense, know your debts, and assets.
If all this shows you are still in the hole, contact me.