Getting stuck in a debt trap

It’s certainly not hard to get into debt today. Companies create attractive advertisements that entice him to buy things he doesn’t really need. Paying in cash is a thing of the past. Items can be easily purchased with credit or debit cards, either in person or online. This results in careless spending and inadequate financial planning that can quickly land you in the debt trap. Then once you get caught, it’s very hard to get back on track.

Why are so many people caught in the debt trap? This is mainly because we have developed an entitlement mindset and believe that we deserve to have everything we want. We don’t even need the cash to cover our purchases, all we have to do is put it on our credit cards and pay later. Sometimes we even ignore the needs of our families and waste money on things we don’t need instead of paying for important things like bills and shopping.

We continually hear these statements: You deserve the best, shop till you drop, just charge it up, treat yourself, pay later. What seems like a good idea ends up becoming a drag when the credit card statements arrive and there isn’t enough in our bank account to cover the minimum amount.

Have you ever considered how much money you spend on things you don’t really need? There is a big difference between needs and wants. We may actually believe we need something when in fact we don’t really need it, we just want it. Here’s a quick list of some expensive wishes:

• COFFEE – If you buy 2 coffees a day that cost $1.60 – in a year you will spend $1,168.00.
• EATING OUT – If you eat at a restaurant once a week and spend $80.00 – in a year you will spend $4,160.
• TAKE-AWAY: If you bring home food once a week and spend $40, in a year you will spend $2,080.
• CLOTHING: If you buy 1 new item of clothing each week and spend $50, in a year you will spend $2,600.
• GROCERIES: If you buy extra snacks, sweets, and treats each week when you shop for groceries and spend $40, in a year you will spend $2,080.

If you add all these things up, it comes to over $12,000! Oh! This could buy a car, a down payment on a house, or even save for the future.

Think about the things you buy that are totally unnecessary. It may not seem like you’re spending a lot of money at the time, but it really adds up. Don’t get into debt for unimportant things. Getting into debt is no fun and it takes a long time to recover. Make sure you spend your money wisely. Don’t get into a debt trap.