Debt is Not a Financial Problem

All Quote are From: Why Debt is the Symptom, Not the Problem | MSN Money News

If you want get out of debt permanently, first consider this: Debt is not a financial problem. Hard to believe, but true. 

Debt is actually a personal problem that masquerades in financial clothing. That is why so many people have persistent problems with debt. They look outward for financial solutions when the true solution is found by looking inward.

I can tell you from our personal experience that making more money is not the answer to your financial debt crisis.  Thanks to becoming health coaches, Dan and I more than doubled our previous income (he is an architect and I was doing some paid writing from home).  We had big plans for our health coaching money.  The biggest of which was to get out of debt.  BUT...we aren't out of debt.  In fact, to be honest, we are in the worst financial place we have been in since we've been married.  

WHY?

Because we were trying to fix a "heart issue" with money.

Everyone knows they need to make more and spend less to solve their debt problems. So they pursue financially driven solutions to relieve financial symptoms. It seems logical on the surface. 

Whether you choose to consolidate your credit card debt to lower interest rates or you choose any of the quick-payoff strategies (inheritance, gift, sell an asset, bankruptcy, home equity line of credit, or refinancing), the reality is you are treating the symptom and not creating a lasting cure.Your financial problems are merely the accumulated reflection of the many small financial mistakes you are making on a daily basis -- often without knowing any better. That's why teaching a debtor to spend less and earn more is like telling someone to lose weight by eating less and exercising more.

Everyone already knows that is the answer. The difficult part is not knowing what to do, but actually getting it done. The solution lies in your daily habits and attitudes.

Sound familiar?  Sounds like the weight loss and health journey, right?  It's not wrong to lose weight--it's a GREAT thing!  But why do we emphasize the Habits of Health system?

Because if you aren't address the underlying habits and attitudes, you will relieve a symptom, but never truly treat the underlying habits of disease.    

This week, I want you to challenge you to really consider what lifestyles, attitudes and habits are you hanging onto...even as you've been having measures of success...that are actually hurting your desire for longterm health in body, mind and finances?

There's nothing wrong with making more money.  It's a blessing!  For some of you, it is critical. (And I'm always looking for motivated, caring health coaches to add to my team. It is a fabulous at-home job with great financial benefits.) HOWEVER, the blessing of money isn't the cure to poor financial decisions.

The truth is the financial results of your life aren't dependent upon how much money you make. Instead, they depend on how well you manage the money you already have.

Today's post is about healthy finances.  I'm posting from Dave Ramsey's website.  If you are not familiar with Dave, I'd encourage you to consider checking out his website, his books, his classes.  Also, as you read his 6 reasons, the same things could be said for "Reasons Why People Stay Unhealthy."  So think of it that way as well!

6 Reasons People Stay In Debt

From Dave Ramsey

Do you remember the moment you decided to get out of debt?
You were sick and tired of being sick and tired. You might have even gotten angry at being in debt. Eventually, the burden and the stress of the constant bills and piling debt broke you down. Something inside you “clicked,” and you decided it was time to make a fresh start.

But what keeps people from getting out of debt? Why would someone want to stay in chains instead of living in freedom? Sadly, there are all sorts of reasons people choose MasterCard over being free from debt.
Here are just a few:  

1. They want to keep up appearances.

This is the dreaded “keeping up with the Joneses” mentality. But little do you know, the Joneses have a leased BMW, an underwater mortgage, and an unwelcome visitor named Sallie Mae living in their basement. The Joneses are the most broke people in your neighborhood. And if you’re trying to follow their example, you’ll be following them into bankruptcy if you’re not careful.

2. They are unwilling to sacrifice.

How can you possibly give up eating out three nights a week? Or what would your life look like without cable? You’ll never know until you’re willing to give those things up in order to build a legacy for your future. If you’re in a lot of debt, something in your lifestyle has to change. It’s about priorities. Here’s the question: What are you willing to give up?

3. They fear change.

Debt can be comfortable, kind of like slowly cooking in a pot of boiling water. If you’ve always used a credit card, and if you always had car loans, then you know what to expect. The unknown can be scary—except for the fact that millions of families have gone throughDave’s plan to get out of debt and changed their lives. We can promise that you have a lot more to fear if you stay in debt, rather than if you make this change in your life.

4. They’re addicted to stuff.

In other words, they’ve bought the myth that you are what you own, and they simply can’t get enough. The more they have, the more powerful and confident they feel. But it’s all a fraud. They can’t afford that stuff and, eventually, it’s going to weigh them down. Their addiction to debt will, at some point, cause a financial heart attack.  

5. They don’t know how. 

Everything we do around Dave’s office revolves around helping people make a plan with their money. These people have good intentions—they want to kick debt to the curb—but they don’t know how. They’ve been in debt so long that getting out under a pile of $50,000 in credit card bills seems impossible. But it isn’t. People call The Dave Ramsey Show every day to tell us about their debt-free stories. Getting out of debt isn’t easy. It takes a lot of hard work and discipline. But it’s definitely not impossible. All you need is a plan.

6. They’re lazy.

These people know what to do. Maybe they know about the debt snowball and they sorta, kinda want to get out of debt. They know how debt can affect their marriage, their stress levels, their relationships, and their future, but they just aren’t motivated to make a change. How sad is that? You know that you’re ruining your future—and if you have kids, you’re putting them behind the eight ball when they go out on their own—but you still go into debt anyway? If you know how to get out of debt, but you’re just too lazy to do it? Well, that’s just embarrassing.


Every day, people are making the decision to get out of debt and change their lives. 


They’re ready to sacrifice and get rid of their fear of change or their addiction to stuff.
If you’ve yet to make that decision, what’s holding you back? And if you’re already debt-free or moving in that direction, what caused you to make a change in your life? 
We all need a plan for our money. Financial Peace University (FPU) is that plan! Find a class today.