Debt Relief Doesn’t Give You a License to Spend
A child learns about “hot” by touching the lit range-top on an oven. They learn not to do it again. Animals quickly realize that if they go to the bathroom where they sleep that they’re probably stuck with that until someone cleans up after them. They learn to hold it or let someone know so as not to make the mistake again. Adults ruin their credit, pile on the debt, lose all of their purchasing power and turn to debt relief as a solution. Eventually they’re able to dig themselves out of that hole, but have they learned a thing?
The ugly truth is that more often than not the unwritten rule is “once a debtor, always a debtor.” It’s a shame really, so many consumers worked so hard to repair their credit and debt mistakes they made when they were younger, only to relive the same errors later in life.
Living debt free is meant to empower us financially. We’re not supposed to ride this roller coaster of debt free highs & overwhelmed with debt lows.
Don’t Lose Focus
When we’re struggling with debt we have a focus, a plan to get out of debt. Every penny is spoken for even before it’s in our hands. We adapt to that way of life because we know that in the long run it’ll get us to where we’d like to be financially.
We have no problem living paycheck-to-paycheck when we know that it could mean the difference between a bankruptcy and being debt free. We’re willing to plan ahead and stick to our budget. But once we’re actually free and clear of credit card debt, we forget about all of it and go right back to our bad spending habits.
If you’ve gotten used to the financial arrangement you had in place before you were debt free, then you can certainly keep it going afterwards. Instead of paying off your debt, start paying off your savings accounts. And most importantly, don’t start overusing credit cards again.
Learn to Say “No” to unnecessary debt
For whatever reason, the little voice in our heads that told us, “No! You can’t spend this money right now,” just disappeared as soon as we cleared our debts. It was replaced by a voice that said, “We’ll pay it off with our next paycheck.”
For those of you that have been through debt relief and somehow managed to drown yourself in debt again, you know that paying it off “next time” never actually happens. We end up paying the monthly minimums and buying yet more; it’s a vicious cycle.
The Bills Aren’t Stopping
You may have paid off some outstanding debts, but you’ve more than likely still got a mortgage or a car payment. Life isn’t going to stop presenting you with obstacles just because you’ve paid off your debt now.
Unexpected expenses have a way of finding their way into everyone’s life. Car repairs, medical bills, leaking pipes, loss of income. You never see it coming. It’s going to happen to everyone at one point or another and it’s best if you’re prepared for it.
Stick to the budget
If budgeting got you out of debt, what it can do for your financial future is even greater. It’s admittedly a trade off: You could have that big ticket item today, with borrowed money that’ll cost you much more to pay back. Or you can have it in a few months or years, with the money you’ve saved through hard work and a financial plan. If you worry about your money now, the idea is that one day you’ll never have to.
