With everything going up in price every other day. It’s hard to stick to a budget. Which is why a lot of us find ourselves swimming in a pool of debts. Which is why it’s important to think twice before opening an account or getting a credit card. Because whilst it may seem like a quick fi to any financial problems. Owning a credit card or having an account requires lots of discipline. Discipline that most of us just don’t have.
However not all debt is bad. Some debt, like house debt is good debt. Mainly because most houses are an investment. And the value of the house is not very likely to go down if you choose a good area. Other debt like car debt is considered bad debt. Especially because all cars loose their value as soon as you drive them out the shop. Which is why going for an affordable car is the best bet. Especially because can sometimes cost as much as house. And sometimes you will find that your car is costing you R 7000 a month when you only earn R 15000.
Because whilst it may not seem like a lot, it is. Especially when you consider that you still need to buy groceries, pay policies, pay insurance, petrol and other expenses. Which is why the less debt you have overall the better. As bad debt and high installments can lead to even bigger debt. I also know that sometimes it can feel like you cant help yourself. And you end up spending money you don’t have when you convince yourself that you need something and end up in debt.
Which is why if you really like expensive things, it is always best to save and only spend on important things every month. Especially as bad debt can lead to you being listed on the credit bureau because you wont be able to pay you debts. Sometimes being listed can affect you to get a job especially in the financial industry, or when you want to buy a house.
So whether you are thinking of getting a credit card or open an account. Or simply rethinking your spending habits. It’s important to remember that debt can ruin your life. And cause undue stress in an already stressful world.