Why Don't People Pay Off Their Debt?

[disneysteve]

I also think when we use a credit card to pay for things, it doesn't feel like "real" money - then subsequently the credit amount owed seems rather imaginary as well. If she switched to paying all cash for everything for a month or two, that might help with changing her mindset.

It is interesting because I think some people are like this and others are the exact opposite. To me, the cash in my pocket is the "imaginary" money. As far as my mind works, the money is spent once it comes out of my bank account. It doesn't matter where it goes once it is withdrawn.

With a credit card, though, I'm more careful because I know that there will be a bill to pay at the end of the month.

[amarowsky]

Most common debt is bad. But there is some debt that can actually make you money if properly used.

I remember a bunch of people on this forum talked about using different methods of interest free debt to generate passive income though secure investments. Right now because I am a part-time student I can get the same loan my brother has (that he needs to use) that is I believe $7500 yearly money that does not have interest or even requirements to be paid back until I get out of school. Being a part time student I could bank off of that for a long time and hopefully make a lot of money off of it.

But when it comes down to it Debt seems more like placing a bet that you just think you will be able to afford when all is said and done. Even a loan for your education is just making a bet that you are going to make enough money when you are done to afford what you were taught, which is never guaranteed. Most debt is bad, but SOME debt allows you the opportunity to better yourself by purchasing more valuable assets (education, a business, or an investment).


I like how Robert Kiyosaki's rich dad put it, something like this " Don't take on debt, and if you do make it small. If you take on large risk and debt, make sure someone pays your for it." It's a very unique quote on how to have people pay your debt for you. (this only works for certain kinds of debt though)

[amarowsky]

wow posted this on the wrong thread disregard

[kenyantykoon]

no body likes the feeling of being broke, even if its just an illusion, that is why i would keep cash that is not mine.