Why Are You Still In Debt?
With options like debt review available as well as traditional saving and spending strategies there have to be reasons why you are still in debt (other than the obvious one: that it takes time to pay off debt). In this series of articles, we look at different reasons why people find they simply live in debt instead of being proactive and breaking the cycle.
Debt Helps People Appear Rich
The age old story of keeping up with the Joneses (or Khumalos). It is a classic but real thing. So many consumers want to project a picture of wealth and success. To do so they are happy to sell their future time and effort for the appearance of having nice things.
‘The truth of most “well to do” families is that they are up to their eyeballs in debt’
The truth of most “well to do” families is that they are up to their eyeballs in debt only weeks or perhaps days away from losing it all if they miss payments. The banks own their house and their car, their fancy dinners, exotic holidays and designer furniture are all bought on credit and they will have to work for decades and decades to come close to actually owning any of it.
The danger of appearing to be rich is that it creates pressure to spend money to keep up these appearances. The latest gizmos and gadgets cost more and come out so regularly that falling behind is inevitable unless you spend and spend.
Being Debt Free Is the New “Rich”
2020 has taught everyone that the world financial situation is fragile and income can drop or disappear overnight. To live in a fancy house you can’t really afford is to live in a ticking time bomb. To drive a fancy car that you can’t really afford is to drive around in the same ticking time bomb.
Having no obligations to anyone financially is so rare these days that it is the real 1% who are debt free. If you want to join this exclusive group of people then you will have to decide who you want to really impress. People you do not know and care about or your family and friends who are closest to you. Getting out of debt can be the first step on your journey to find a better financial future for your family.
If you rely on the things you have to impress people rather than the depth of your character and your actions then you are a poor person indeed.