We Create Many of Our Own Financial Problems

A coworker came to me moaning about her debt level the other day. Her New Year’s resolution is to get out of debt and she wanted to know where to start. I asked her what kind of debt she had. Car loans? Student loans? Credit cards? Almost all of the debt she had was from simple overspending on stuff she couldn’t afford. Expensive cars, trips, meals out, clothes, and electronics made up most of the credit card debt. She said, “I don’t know how we got into this mess. We don’t do anything that out of the ordinary. Everyone has this stuff.”

Now, I don’t know exactly what she and her husband make, but knowing their occupations I’m betting it’s


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6 Responses to We Create Many of Our Own Financial Problems

  1. Stephen says:

    I can sympathise with both sides of this conversation I know what it is like to have friends that have the latest car, a nice big house and regular holidays and I would like those things also but it gets to a point when you realise you can’t go on spending, we learnt this lesson early on and although it was a hard lesson we got there.

  2. 20 and Engaged says:

    I also want to get out of debt but the difference with me is I know it’s my fault. At the time, I justified my overspending with things like “I deserve it” or “But I can afford” knowing that I’m not entitled to getting into debt and I certainly couldn’t afford it. It’s just something you have to get used to and adjust.

  3. larabelle says:

    I could not agree more. I have a coworker who laments her finances and complains that she is unable to retire due to finances. She has worked at the company for over 35 years…a person can retire at 30 years. However she spends, spends, spends…cruises, vacations abroad, clothes, cars, lives in an expensive house with land. She also is having her wages garnished due to back taxes.

  4. Parick says:

    Unfortunately many of these people who want more than they can afford end up in government where they continue their profligate behaviour.

    Instant gratification and status lifestyles now seems to be an endemic problem but unfortunately there is always a price to be paid.

    Many of these people will have to work their whole lives and when they can’t work any more they will expect the state (using our money) to look after them!!

  5. Isabelle says:

    Oops! Did the coworker deal with the problems? Trouble is, in this much debt you have to not just live within your means but live below that to free up the money to pay the debt.

    So, a double whammy! She goes from a ‘high on the hog’ lifestyle to a life of frugality. Selling some of the stuff and completely reassessing her life.

    Or, did she go to someone else with her dilemma, they may just have the magic wand to wave to make everything all right! Pity you left yours at home.

  6. Gail says:

    How could someone NOT be comfortable in a Hampton Inn? I got to stay at one once courtesy of work and it was lovely. As too cell phones, since when does a compnay require cell phones that are the latest thing unless they buy them for the employee? Yes she is full of excuses. I’ve worked with people like that who could never figure out how I survived on what I was making because she couldn’t on the same salary plus child support. Well I wasn’t buying new clothes constantly or gambling every weekend at Niagara Falls or taking my young child to Red Lobster to eat since he didn’t like McDonald’s and of course she needed to get her car detailed at $50 a pop. Well she went bankrupt but didn’t learn her lesson. She just used the bankruptcy to start all over again racking up bills on her sister’s credit card!

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