by L. Marie Joseph
Having consumer debt can be toxic not only to your finances but also your family life.
For some, their entire paycheck goes to monthly expenses and housing. Then they use their credit cards as a security cushion, to get by until the next pay period.
This becomes a perpetual process that becomes harder to escape. You feel normal because all your friends, peers and co-workers are living the same way. Living paycheck-to-paycheck is not embarrassing any more. Using debt as a crutch is almost expected.
The economy crashed because they are more people that believe in having credit than CASH. I have seen friends lose homes, jobs, and cars. They have all lived well above their means. So when they experienced a job loss, everything came crashing down.
I do not have a credit card and all my friends thought I was abnormal. They couldn’t believe it. But when the recession loomed, I had no panic moments.
When you lose a job and owe money to creditors? It quickly becomes a headache. Losing a job and having no debt is something you can overcome quickly, less stress can make you think clearer. Looking for a job and doing an interview when you constantly have bill collections calling you everyday will make you become desperate.
Do not over leverage yourself. My husband and I live modestly; actually we live on one salary. We pay bills from one salary and use the other as saving and discretionary income. It has worked for us. Why? We have no consumer debt lingering. So if one of us loses a job, we will not panic.
This guest post comes from L. Marie Joseph, author of First Generation White Collar: A practical guide on how to get ahead and not just get by with your money. You can also follow her on twitter