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I& #39;m from the era where you could get credit cards without too much due diligence being done by finance houses. For some reason I believed a credit card was a sign of "having arrived". At one point I had 3 of them. @HeartlinesZA #ValuesAndMoney #DealingWithDebt
Back then your limit was increased without banks even asking you. It was marketed as a "reward" for using them. I totally bought into the smoke and mirrors. Add clothing accounts, car loans, phone contracts etc & my salary was literally 80% for servicing debt. #DealingWithDebt
We have this thing of believing that we need to show that we& #39;re working and earning money. So I moved to an affluent area, shopped in more affluent stores. Dealt with high debt like it was a normal thing one has when they& #39;re working. It& #39;s not. #DealingWithDebt
Buying clothes on 12 month credit terms. When one got maxed I& #39;d just open another one. Didn& #39;t even think it was an issue.
Then my first car got stolen, it was just 3 months old. Ko Who Zoo
https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ" title="Gesicht mit FreudentrĂ€nen" aria-label="Emoji: Gesicht mit FreudentrĂ€nen">. Insurance refused to pay out. That& #39;s when I had to wake up quick. #DealingWithDebt
Then my first car got stolen, it was just 3 months old. Ko Who Zoo
I wrote a plan down. Listed all my debts and how much each one was. Then listed them in terms of highest interest to lowest. I systematically paid them off one by one. You& #39;ll be shocked at how high credit card interest rates are. Its insane. Started with those first. They fought
If you& #39;ve ever tried to close a credit card you& #39;ll know just how hard it is. They offer to reduce your limit, but avoid letting you close it. They don& #39;t want to make it easy for you. Found the same issue with clothing accounts and gym contracts. I would use Hello Peter like a pro
Writing down the actual numbers for each one of the debts each month helped bring the reality home. Having a plan and paying debts off first before spending on yourself was hell but one of the smartest things I ever did. Seeing numbers wakes you up.
I& #39;ve used the same strategy in my business. Have never applied for funding or a loan. Every thing started small and with the profit I& #39;d buy more equipment. Wrote down what I need the most, had a list #DealingWithDebt
I have a creative brain...but I& #39;m also very technical. So things I could do myself without funding, I did. My website, my logo, photography, admin...all one man. I wouldn& #39;t recommend to others but it was all to avoid getting into debt again as a business. #DealingWithDebt
The avoidance of debt also allowed me to be more flexible with how I handle my business. Its probably why I& #39;ve been able to survive Covid lockdown. I don& #39;t owe anyone. Thankfully. It also allowed me to quit engineering and go to chef school without stressing.
It& #39;s not easy but systematically handling debt and being frank and open about it and not treating it like a shame is so important. My folks always told us about their money situation, down to even how much they earned. It wasn& #39;t a secret or hidden thing. #DealingWithDebt
