Normally I don’t like to quote so much, but this article is very good. The point is harsh, but it’s reality: most of us use credit to live the life we want right now whether we can afford it or not. In the long run, that costs us more than it’s worth.
It is easy to assume this debt is from buying too much stuff. Many people don’t see it that way, I suspect. A lot of young people with credit card debt think they are buying abstract nouns - experiences, memories, togetherness, exploration and freedom.
When you use debt to buy abstract nouns you can explain away the guilt. You are not a shallow materialist living beyond your means if you slap air fares, mobile phone bills and scuba diving lessons on the plastic. Oh no. You are simply living life to the fullest. The anti-consumerist consumerist says things such as “you can’t put a price on memories”, “keeping in touch is more important than money” and “I have no regrets because I’ve had some fantastic experiences”. Been there, done that.
There is sense to this approach. Why not make the most of opportunities? Why not have fun before you are tied down with responsibilities? Why not experience as much of life as you can?
The retort to this is so obvious it hardly seems worth saying, but I will because it escapes many of us when we are racking up debt. You cannot buy more experiences or memories by going into debt. You might get the experiences sooner but that’s about it. Really, you end up with less money to spend on experiences because you have to pay back the debt - with interest.
Read the whole story here.
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