My husband and I want a king size bed. The older we get, the more children we get, the bigger the bed we need. However, we just don’t have the expendable income to get what we want right now. Buying a king size bed means a whole new frame, new bedding and if we can’t find a matching frame even a new set. It’s a pretty big expense. And after talk of financing this large purchase at zero percent for 4 years, we decided the debt wasn’t worth the purchase and we can get a little more cozy in our queen.
And why? Because debt is bad, here’s why.
1. It affects your credit. The more debt you have the more it lowers your score. This really comes into play if you’ve maxed out your credit resources. Low credit scores affect most anything you want to qualify for. Higher interest rates for poorer scores and of course a lesser probability of being approved period.
2. Debt will cost you more. That’s how debtors make their money. They don’t want you to pay off their debt. They want you to keep accruing interest and in turn make them money. So your purchases ends up costing you more.
3. It’s an endless cycle. Once you start accumulating debt, it’s hard to get out of it without a concrete plan. Most people just keep accruing it. It’s hard to stop living above your means because it usually means more self discipline and less of the “I want it now mentality.” That can be hard for a lot of people.
4. No house! My husband ran into this problem when we wanted to buy our first house and we had a lot of debt. We had more than they allowed. We had to pay it down before we could buy. Our debt was actually keeping us from our dreams of owning a home. It was a long hard road and I wish someone would have told us before we got so much debt.
5. It ruins relationships! I heard that money is the number 1 thing that couples fight about. I am sure it’s not because of an abundance, but because there’s not enough or this funds are misappropriated. Less debt will mean less arguments about money.
That is the most untrue statement ever made here on Thrifty Divas. Americans accumulated over $11.31 trillion in debt in 2012.
I promise, with those statistics, you are NOT alone. One of the hardest things about paying down debt is feeling alone. You feel like no one else is in your place and that it’s hopeless. Again, another lie! There is also a sort of stigma that goes with people who are in debt.
Just a few are, “You are irresponsible with your money,” “You don’t pay your bills,” “You just want everything now and you don’t want to save for it.”
Those are some pretty strong words that some of us in debt have heard. So if you keep your debt a secret you’ll never have to hear those things. However, how about coming into the light and be honest, then get the help you need to get out of it.
One of the biggest ways to get out of debt is to bring it into the light and get into a support system. Get with other likeminded people who want the same thing you do. If you’d like to pay down your debt with the help of likeminded peers, join the members of AFullCup (for free) http://www.afullcup.com/forums/frugal-living/656663-big-debt-payoff-2013-a.html. These guys are serious about getting out of debt and helping each other through it.
Those guys are talking about everything from paying off huge home loans to smaller credit card bills. Regardless they aren’t going at it alone and neither should you!
Go kill some debt in 2013!
I am SO excited about this program. We all know about getting rewarded with cash back or points or sweepstakes entries, etc. for shopping online, but with SaveUp you get rewarded for choosing to save your money instead of spending it! What a cool idea!
How does SaveUp work?
After registering savings and debt-bearing accounts with SaveUp, users earn credits by making deposits into their savings account or paying down debt. Credits can be redeemed for a chance to win prizes and users can earn additional credits by participating in daily challenges, engaging with educational content on the site or participating in social actions to help others save.
What kind of accounts can be linked to SaveUp?
Users can register any savings or debt-bearing accounts with SaveUp, including IRAs, 401Ks, mortgages, student loans or credit cards at more than 19,000 US financial institutions.
Get started now with SaveUp!
And let us know if you win a prize. 
How can paying off your debt or adding to your savings be fun? (Well, other than the financial freedom that comes with that, of course!) Set goals on Payoff.com and track your progress while also earning badges, and possibly earning cash prizes too. Check it out and let us know if you think it’s as fun as we think!
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