Paying interest, especially high-interest charges on credit cards, can be painful. When you find yourself owing on several credit cards, and it becomes harder and harder to make the payments, that’s when you begin to look for some kind of relief. Debt consolidation, a practice of consolidating all your debts into one with one monthly payment, usually at a lower interest rate, can seem like the right choice. However, there are several things to consider before pursuing this solution to your debt problems.
When I was 18 years old I purchased a 1983 Chevy Camaro Z28. To be honest, I couldn’t afford it. It was one of those scenarios where I ended up working just so I can pay for the car. My dad tried to talk me out of it but I didn’t listen. Know why? Because I was an 18-year-old young man. I was emotionally insecure, I wanted to be liked, maybe even a little envied by my friends. I was also dating this cute little red-head whom I was really trying to impress. I made a totally emotional decision and it cost me dearly. Have you ever been there?
There’s been a lot of talk in the news lately about student loans and the growing student loans debt, which currently stands at $1.5 trillion. To give you a better perspective of this enormous problem, the national credit card debt, which is of great concern is only $1 trillion by comparison. What does this mean for this and future generations and what can you do to ensure your children don’t become part of this statistic?
Most of us, if asked, would admit that we want more than we already have. Whether it’s money, relationships, career, or possessions, we’re wired to “reach” for more. This isn’t always a bad thing. Considering the innovation we’ve experienced over the past 100 years and how it’s improved life for so many, I’m grateful that we keep reaching forward and upward. But, when it comes to finances how can we know when reaching for more is not a good thing?