When I first read the story about a real estate agent who got into a debt of almost $100,000 by the age of 27 because of her foolish spendings, it reminded me of a famous saying:
Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.
Borrowing money from credit cards to use on lavish spendings, letting the debt roll over and paying astronomical amounts of interest in the process is a sure way to get into financial trouble.
Many people take a keen interest on how to grow their money using investments. I would say that learning how to manage your money and your debt is just as important.
If you have a habit of not paying the full outstanding amount on your credit card bills, you need to stop this habit right now. Making a conscious effort of paying off those bills entirely every month would probably beat 99% of the investments that you can find out there.
I’m sure none of us would want to end up in a position that the real estate agent ended up into. You can read about her story in the link below:
Trapped in Debt to Save Face (The New Paper)