October 8, 2013

What is the “monthly payment mentality”? How can you kick it out of your life? Why would you?

2 thoughts on “October 8, 2013”

  1. Alex Christianson says:

    The monthly payment mentality is only paying the minimum amount required every moth for a debt. This is particularly bad for credit cards because interest rates are so high and the debt can keep piling up from your continuous spending.Stop with the monthly payment mentality. If you always pay the bare minimum you are throwing money away and paying back more than what you initially owed from your credit charge. Pay the bill off as soon as you get it. DON’T WAIT. It is also good to pay more than the minimum for other debts too.

  2. Mike Finley says:

    Well said, Alex. Let’s recap.

    It is easy for a salesperson to get you to assume a big debt (car loan, furniture, home improvement, etc.) by simply focusing on the monthly payment. It ONLY will cost you $305 per month. This ignores the $32,000 debt that you are actually assuming. STOP thinking in monthly payments and START thinking about how much debt you want to assume.

    Keep your debt to appreciating assets only (needed debt). This would include a home, a business and YOU (school loan). Be careful though, these debts can lead to bankruptcy and foreclosure if you are not careful and prudent with how much you assume. Everything else? Pay with available cash. If you don’t have the cash? DON’T BUY THE ITEM.

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