Josie
Has No Life - Lives on TB
The bottom line is when you have less coming in than going out, there is a problem. Sometimes the outgoing is because of medical/health issues. When I see family member's medical bills for treatments, I just about pass out! The cost of these things is just unreal. Sometimes things can't be helped and some people will find themselves with nothing but a plastic spoon to try and dig themselves out of that debt.
Other people bought lies of higher education. They were told it was the next step to becoming a responsible adult. They signed on the dotted line with absolutely zero guarantee that they could get a job in their field of study that would allow them to pay back those obscene loans. So they settle for a job as a barrista in a coffee shop and bring in so little that they can't hardly make rent and buy food and they are reduced to begging for tips. The anger is there but let's be fair about where it belongs. It's not the guy/gal stiffing you on a tip. Look at your paycheck and see how much is taken out in taxes before you ever set eyes on your wages.
Other times, the debt is due to just poor decision making. When times are good, there is no problem and you spend. When times get tough, it's really, really hard to change your spending habits and lifestyle. It's very difficult to actually understand the difference between NEEDS and WANTS. For example, I need to pay the power bill but a want that double foam latte with a shot of sugar free caramel. (I don't know if that's a real order, which just shows how often I frequent coffee places.) Just one won't make a difference. Maybe not just one but the habit has started and one becomes 30 over the course of a month. Now you find that not only have you drank the money for your power bill but at 15% interest, you can't pay your credit card bill either!
The issue is that we have a generation or two that have absolutely no financial understanding. Balancing a paper checkbook is antiquated but it gave you a sense of how much money you actually had. Writing a paper check actually gave you a minute or so to try and figure out if this was a want or a need. Paying with cash left your physical wallet a bit lighter, so the consequences of your actions were felt immediately. You knew where you stood.
Other people bought lies of higher education. They were told it was the next step to becoming a responsible adult. They signed on the dotted line with absolutely zero guarantee that they could get a job in their field of study that would allow them to pay back those obscene loans. So they settle for a job as a barrista in a coffee shop and bring in so little that they can't hardly make rent and buy food and they are reduced to begging for tips. The anger is there but let's be fair about where it belongs. It's not the guy/gal stiffing you on a tip. Look at your paycheck and see how much is taken out in taxes before you ever set eyes on your wages.
Other times, the debt is due to just poor decision making. When times are good, there is no problem and you spend. When times get tough, it's really, really hard to change your spending habits and lifestyle. It's very difficult to actually understand the difference between NEEDS and WANTS. For example, I need to pay the power bill but a want that double foam latte with a shot of sugar free caramel. (I don't know if that's a real order, which just shows how often I frequent coffee places.) Just one won't make a difference. Maybe not just one but the habit has started and one becomes 30 over the course of a month. Now you find that not only have you drank the money for your power bill but at 15% interest, you can't pay your credit card bill either!
The issue is that we have a generation or two that have absolutely no financial understanding. Balancing a paper checkbook is antiquated but it gave you a sense of how much money you actually had. Writing a paper check actually gave you a minute or so to try and figure out if this was a want or a need. Paying with cash left your physical wallet a bit lighter, so the consequences of your actions were felt immediately. You knew where you stood.