Don’t Wait Until Your Debt Hurts to Start Solving It.
Whether you have a choice between paying off a small amount of debt or paying your bill right away, most of us will choose the latter. However, this is how small debts get big.
As personal finance site Fruclassity explains, most of us usually don’t want to deal with our growing debt until it’s big enough to hurt us. After all, having $ 1,000 in credit card debt every month costs less than a night to eat every month at interest. Why waste $ 1,000 today when you can just pay the interest and deal with it later? However, it is this mindset that drives up debt. This means that most people will not get through their debt until it is sick enough to wake them up:
I don’t remember exactly what made us look at ourselves financially; I only remember that we recently charged almost $ 5,000 from our credit card for a new snow blower. Something about this purchase prompted us to look in the mirror at ourselves financially, and we saw an impending train wreck.
We began to wonder how we would have survived if Rick had been fired – or if we had the smallest of contingencies. Thus began our journey to freedom from debt.
It is, of course, understandable why most of us put off solving a large but manageable debt. I was there too. However, if you can afford to make the decision to pay off the debt early (to be honest, not everyone can ), it is much better to do it before it hurts than after.