Managing Money – Don’t Let a Warped Mindset Keep You Trapped in Debt
Managing Money – A warped mindset will keep you in debt longer and cost you more just because you can’t see the BIG picture. Talking to a family member that stopped by yesterday – she is still paying on a personal loan that she took out three years ago on a car that she hasn’t owned for a year. She was complaining that she was paying 18% APR now.
I asked how much she owed – the answer – “$2,200 but my payment is only $70 a month and I pay $150.00 every month.” She had just been talking about being caught up and even a month ahead on all her “bills” with a bit over a thousand in the bank.
It didn’t make sense to me. Paying every month on a car she paid $3,000 for three years ago and still owing that much on it without trying to clear it up. I suggested that she try to knock out some of this debt whenever she had some extra money.
Her view?
Why would I want to part with twenty two hundred dollars when I could simply pay $100 a month.
I said “for how long?”
Her response, “It’s a ten year loan.”
“You would rather pay $100 a month for another seven years than pay it off in a couple months and be done with it?”
“Of course.”
I just don’t get it.
Logic will not win out. Completely paying off a debt and know that car, that time is taken care of would make ME feel better because I know the great feeling of paying off a loan.
She on the other hand has never paid one off – she refinances and extends loans because the smaller amount of a monthly payment rather than the full cash price or cash outlay of paying of the debt is easier to accept.
Let’s see:
Give this company $100 or give them $2,000.
$100 wins – hands down.
Unless you want to be FREE – of debt, of monthly payments, of interest and late fees.
When your money is valuable, when wasting money makes you cranky – then you just want the debt GONE.
What do you think?
Tammy
Tags: debt, debt free, interest, managing money, Mindset, money, personal loan, warped
