I want to tell you that today, and for a very long time now, that is no longer the case. It is a pretty radical idea, but I want to share with you what I did in order to get out of debt, stop paying interest to everyone and his dog, and actually have enough left to save up for a down payment on a house and a car that would start in the morning. Here goes.
What I did was, I stopped borrowing money and we tightened our belts. I contacted all my creditors and told them how much I made and how much I could truthfully pay them each month (some made me pay every week) and I kept my word. A lot of hamburger and beans and macaroni were consumed during that bad time in my life, but my little family stuck with me. Somehow I managed to keep the car running to drive to work.
But you know what? After what seemed to be a lifetime of doing without and not being able to get extra things for the kids (and that killed me, because I used to put stuff for them on the credit cards) the bills started to get paid off, one by one by one. There were a lot, too. Once the creditors were paid off, we continued to live on a percentage budget, and part of that budget was savings and a little each month for investment. Not much. One day, a few years later, actually, after rebuilding our credit and saving a little out of each paycheck, we found outselves with a new car and then a small two-bedroom house that we actually could say that we owned, along with the mortgage company.
Now, I am not trying to be smart, or trying to insult anyone. Honestly, I am not. But I am here to tell you, as living proof, that the way out of crushing debt and the way to take care of your family, and perhaps your whole country, is NOT to borrow more and more money.