The Very First Step: Recognizing You are in Debt
Browsing around this morning I found a blog post I really wish I had written, Do You Realize That You Are In Debt? Seriously, this one is good! It also triggered the forehead slap on this end, because DUH this really is the very first step. You can’t address a problem until you acknowledge the problem. At least that is what each and every 12 step program says.
So, I have to ask: do YOU realize you are in debt? I have heard many say they aren’t in debt, then list things like a student loan, a mortgage, or even (gasp!) a car lease or payment. If you don’t count these as debts, then just how can you work up a decent debt reduction plan?
Another one I tend to hear is people say they don’t have debt because they pay off their credit cards every month in full. This one puzzles me, because when I start asking why they use a credit card to begin with, they claim it’s for a “free” 30 day loan. Ummm, loans are debts…no matter how short or long they last. Debt is debt is debt. And debt is one place I don’t want to be in anymore!
What I really like about Lynnae’s post at Being Frugal is she tackles it from a personal integrity point of view. Simply paraphrased, if you are in debt you are under obligation and the question becomes “Am I good for my word?” because debt is actually a promise. I think that is an excellent way of looking at it.
