Why Do We Get Into Debt?
One couple’s tough lesson and how you can avoid it happening to you!
Andy was looking for a new vehicle. Because he traveled a lot for his job, fuel efficiency was a big concern. He also wanted something fairly new so he wouldn’t have to worry about the cost of repairs. His wife, Lisa, managed the family finances, took a look at their numbers and said, “All right, we can afford a car payment of $400 a month.”
“It made sense to me that by investing in a new, more efficient vehicle, I would save the difference in the cost of fuel over the course of the loan,” says Andy. “So I let myself get talked into a payment that, at the time, didn’t seem that much higher. Only 200 some-odd-more dollars a month, right? I thought, I can earn that! Lisa and I were very hopeful. We just thought it would work out somehow.”
“When the dealership was able to get us the loan at a competitive interest rate, we thought, wow, I guess this was meant to be. Two years later, my wife and had over $6,000 of credit card debt.
I thought because the dealership gave me the loan, that meant I could afford the loan. All it meant in the long run was that my wife and I would be stressed out, stretched to the max, and worried constantly about making ends meet. It was the most stressful two years of our lives.”
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