10 lies we tell ourselves that get us into and keep us stuck in credit card debt:
10. “OMG emergency!”
9. “What a deal!”
8 “It’s only a widdle bit of money.”
7. “I’ll only be paying a widdle bit on it each month.”
6. “The reward points I’m getting make up for it.”
5. “It’s for my business. “
4. “I can claim it as a business expense on my taxes.”
3. “I deserve a treat.”
2. “0% APR means it’s free money!”
1. “I’ll make a bunch of money after college and pay it off then.”
What’s your favorite debt-inducing lie? Sound off in the comments. [via monycentral] (Photo: * Photography by Chris *)
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Lie #44: I needed that free t-shirt / drink cooler.
11. Convince yourself you really NEED and will die without all that crap that is now cluttering the garage and hasn’t been touched in years.
Me: “I need this now, but I’ll have it paid off in two months. I just need to be disciplined and aggressive.”
11. The guy next door has that gizmo and I need to keep you with him. Of course, the guy next door is in credit card debt up to his eyeballs and 1 missed paycheck from living in a cardboard box on the sidewalk. Of course, I don’t know this added information.
@kwsventures
Hindsight is always 20/20.
#4 is something that I do spend more than I would normally if I could not deduct it. I am not in debt but I do fall in the trap of spending more then I should.
1. “I’ll make a bunch of money after college and pay it off then.”
Yeah, big time.
If you’re still in college, take heed – #1 is dead on. Everyone and their mother thinks that they’re going to make a six figure salary and set the world on fire within 2 years of getting a bachelor’s degree.
Hate to break it to you but chances are you’re going to start near the bottom of the corporate ladder and have to work your way up over time.
I work for a large company and make a pretty good salary at 27, but that doesn’t change the fact that I will be paying my 20 grand in student loans until I’m in my early thirties.
We can pay if off when my bonus comes in.
@axiomatic
Mmmmmmmmmm shoes!!
Student loans… my biggest source of debt right now. No regrets, though.
“It was on sale. I ‘saved’ $500.”
Numbers 1, 7, 8, and 10 got me into serious debt during college. Thankfully that’s over!
@jmujeff: I’m in the same situation. Though I do make a ton of money compared to what I made in college. I forgot to factor in that I would be paying for my health insurance, the car I had since high school would die and that I would grow tired of grilled cheese and cheap beer as my main sustenance
It’s only $X a (day/month/quarter/year)! ( doesn’t matter how small X is since it adds up over time ).
The worst offender is cell phones, especially smart phones. Yeah, sure, with discounts on your plan the iPhone can be had for what, $60/month before overages. That’s a cool $720/year or $2160/3 years for the service alone! For a family of 5 iPhone users without a corporate discount it’s a cool $10k/3 years before adding a TXT’ing plan, apps, and overages!!!
@snowmoon: Yours is a great tip.
I always calculate the yearly cost of subs, much to the annoyance of my friends (it depresses them). Sigh. Great friends, but spendthrifts.
@snowmoon: Yeah, at this point you have to ask yourself if its really worth it or not. Also factor in upgrades since a new Iphone gets released every year and sometimes more often. It might even get to the point where they discontinue service for old models, and hey if your buying into the plan why not upgrade your phone as well! The type of person who buys an Iphone isn’t going to stick with the same Iphone for 3-4 years, they are going to buy the latest model as soon as it comes out.
To my mind, the single biggest lie we tell ourselves that screw us into debt is this:
“Everybody else is doing it, so why can’t we?”
“That’s purdy.”
Or as @Trai-Dep said, hubby says I look hawt.
/done spelling things wrong. Just feeling phonetic.
But it’s so… Shiny….
“I’ll sell the old one on Craigslist or eBay to offset the cost!”
3: I paid off $100 of the balance last month… I can spend $100 this month and it works out, right?
2: I have 3-months to pay it if I just spend another $50 (Home depot $300 deal)
1: I will pay it before the bill even comes.
No matter what I do, the cats seem to thwart my plans on being debt-free.
“OMG, human haz moneyz. I has hairballz in my gutz.”
“Human haz moneyz – I needz thyroid treatz.”
1. This DOES make my butt look smaller
2. This small size is such a bargain and If I just eat lettuce and cardboard for the next three weeks it will totally fit
Ha Ha, it’s for my business. I thought that was my little secret.
Should just switch the list from the point of view of the business that endorses the use of credit to buy their stuff wether it’s a car dealer or TV/electronics store .
I’ve frequently had the 0% financing tauted as free money and you get reward points .
On a related note I read in USA Today that 0% financing know as ‘ same as cash ‘ in the industry is going to be much more regulated due to the number of people getting caught by the interest/fine print when they don’t pay it off on time . 0% offers are frequently a seperate entry on your credit report as well .
Biggest Lie that screws us into debt: The Democrats will make everything better.
Well that Hope and Change sure worked out just swell.
Well, the emergency one kind of hits home for me, as in REAL emergencies. As in I don’t have thousands of dollars for house or car repairs emergencies. You can’t fake that shit…
I don’t do any of those. But I have had a lot of friends stick themselves with stupid debt with this line:
“It’s for the baby/kid!”
Which is good for me, because all those chumps who still buy full-retail boutique clothing then desperately try to get money back by selling it to resale shops, where I buy it at $5 fill-a-bag sales that average about 25-50 cents per article of clothing. And it’s usually hardly worn because these same people buy current-size and then their kid grows out of them in two weeks.
I’m a female techie, so for me it’s electronics AND shoes that are my weaknesses!
Wow man all these reasons are so true !! I believe that I have participated in everyone of these lies to get me further into debt. It has been so stressful. I finally got into a program and am starting to see the light. I found a great settlement program at [www.creditcarddebtconsolidationsite.com]
I will never use a credit card again. I will treat myself and buy electronics whenever i can officially afford it with cash.