Why is it so easy to get into debt, yet so miserable to get out?

One of the reasons it is so easy to get into debt is because we have very little emotional connection when we swipe our plastic. We think...I can have instant gratification now and worry about the bill later. We may not say it to ourselve like that, but that is ultimately what we are thinking. Even with a debit card in hand. We know where the money is going to come out of, but we only think a little harder about the purchase than when we use a credit card.

If you do not think this is true, try carrying around $100 in cash. Make it a nice crisp Benjamin Franklin. See how slowly Uncle Ben leaves your grasp. You really didn't need that Caramel double machiatto chai latte for $6.00. If you had your plastic on you though, it would not be that big of a deal. Try it some time. I bet I am right. Do not break Uncle Ben just to spite me. Do it only if you think you NEED it.

So many times in America, the land of opportunity, we force ourselves into debt because we want instant GRATIFICATION! If you think I am wrong on this, look at your living room. Is the TV financed? Is the sofa you sit on financed? What about the side tables you had to have, were those put on the credit card? Take a look at your bedroom. What about the bed you sleep on? 90 days same as cash? 12 months no payments, no interest? Chances are if you fell for one of those two, you will have a large bill after 90 days or a year asking for all the interest gained during those 3 or 12 months. That's just reality. Very few people have the discipline to pay things off in that allotted time.

This is why it is so easy to get into debt! You think credit card companies do not know you have no emotional attachment to their plastic? The credit card industry is one of the most lucrative industries around. Sears makes more money on interest earned on their credit cards than they do in selling stuff every year. (Scary isn't it?) You do not have to think very hard when there is no emotional attachment. If you carry cash on you, it is normally a lot harder to spend than swiping that card. That is why credit card companies GIVE you PLASTIC and not CASH!

Take a little step today and destroy the enemy, your credit cards. I know I know...Mike, what if I have an emergency? Good news for you. Keep one of your credit cards open. Leave it open until you build up an emergency fund.( And no, PIZZA is NOT an emergency.) Once you have roughly $1,000 in your emergency fund (some of you will want to save a little more becuase you would feel more comfortable) then cut it up. Now that you have an emergency fund, you no longer need your "emergency" credit card. CUT THEM UP!

Carry cash. It is harder to spend. Once you are out of cash, do not go back to the bank or ATM to get more. You are done spending for the week. Create envelopes and fund the envelopes! We will get more into this on another post. For the time being, I think this is enough to chew on.

Feeling better than I deserve,

Your Financial Health Moment!