≡ Menu

The Top Ten Reasons People Stay In Debt

Why do people stay in debt, instead of working to get out of debt?

More on that in a moment, but first a personal note. If you are one of my loyal readers, you will have noticed my absence for a couple of weeks (thanks for noticing, by the way 🙂 ). I have been busy busy busy, and within the next week I will be telling you all about why – with videos to boot!

And now onto our regularly scheduled blog post…

I have recently decided to try my hand at humor – I am reluctant to call it “comedy” – for several videos.

This one is humor with a message, inspired by David Letterman’s Top Ten sketches. To watch the video, scroll down (and please remember to hit the “thumbs up” button if you like it!). Following is the text of the video, plus a little side note on each Reason.

Reason number ten: Without a car payment, what would they worry about every month?

Obviously tongue-in-cheek. But the American lifestyle seems to be embroiled with never-ending debt. Even if a person pays all his bills on time, once he gets one thing paid off, he buys something else that requires monthly payments.

Reason number nine: How can anyone stand to live in a house that isn’t completely redecorated every six months?

This is an exaggeration for most people; nevertheless, most American households do regularly update their furniture and décor – and much of that is done with credit cards. Larger projects, like remodeling the kitchen or bathroom, are financed with special loans.

Hint: being happy with what you have is a lot cheaper.

Reason number eight: The devil makes them do it.

People have all sorts of lame excuses for getting into debt.

Reason number seven: They’ll pay off their student loans…when they win the lottery.

Some people do live in such ridiculous fantasies. They try for the Publisher’s Clearinghouse, buy lottery tickets, join MLM, or get involved with any number of get-rich-quick schemes. Why waste their own hard-earned job money on paying down debt?

Reason number six: They believed their financial planner.

Many financial planners care more about what goes into their pockets than what goes into yours. My own financial planners has never even heard of The Permanent Portfolio – and tried hard to talk me out of putting a fourth of my investments into a money market account when our Permanent Portfolio money is performing much better than our mutual funds!

Perhaps worst of all, financial planners tell you not to pay extra on the principal on your mortgage, but to invest it. If you read my book Hatching The Nest Egg, you will find out why this is an abysmally horrible idea.

Read books, research, and think for yourself. Don’t let a financial planner determine your financial future.

Reason number five: They’re trying to win the Guinness Book Of World Records for the number of debt collector calls in one year.

Getting a letter from a debt collector is embarrassing enough. Dealing with phone calls from them is stressful and humiliating. (So I know from having heard stories, not because I’ve had personal experience.)

Reason number four: They have stock in Visa.

You know, as in, the stock market. Okay.

Reason number three: The Joneses are watching.

Who cares what your neighbors think? Your neighbors may have more debt than you do, their marriage may be on the rocks, and their kids may be on drugs. Live your life responsibly, with a standard of ethics that cares for both the planet as well as other people, and you’ll be able to get – and stay – out of debt.

Reason number two: They believed the Time-Share salesman.

Never, ever, EVER buy a time-share.

Reason number one: Your mother-in-law hides all the credit card bills.

Back to lame excuses again.

Are you in debt? Then, ask yourself this question: how free do you really want to be?

Enjoy the video, and remember to “like” it. Thanks! 🙂

Please like & share: