Debt is the biggest thief of your personal wealth. At one time in the early 90's I owned 4 Visa and 4 Mastercards. It was so easy to walk into a bank or credit union and just fill out a paper application on the spot. Go home, wait a couple weeks and card is in the mailbox.
I also applied for and was approved for an unsecured LOC with the Royal Bank for 5K. I now had access to an unlimited supply of money that wasn't mine and I had no problem using it. In those heady days of a debt fueled lifestyle, I didn't just live paycheque to paycheque but instead tax return to tax return. You see I couldn't address the principal on my debt payments but interest only payments. Well, barely.
I also had child support payments of $500 a month to deal with.
No longer could I afford to live alone but I needed a roommate to help with the monthly rent. It was a crowded restricted life I was leading. I knew I hated being in debt and Ijust couldn't go on this way.
I ended up volunteering to take a military posting to Egypt for six months. I no longer had to pay rent and on top of that dramatically increased my income. This allowed me to address my ballooning debt with the added cash flow and new posting. I also worked our contingent bar for extra money in tips while in the Middle East.
Once I returned to Canada, I paid off all my debts (free at last). These drastic measures cost me a lot of time away from my kids and the cost of separation from family and friends can not be properly measured. It was a lonely time and spurred on only because I couldn't stop myself from borrowing money.
A couple years before my tour I had read 'The Wealthy Barber' by David Chilton. The year was 1990 and I was 34. I thought I would be able to get my financial house in order after my new found financial knowledge but I didn't.
The only thing I did was start investing in mutual funds that I later cashed in. I chose the Altamira family of funds as at the time they were doing well and were highly rated. I went on to later invest in Mackenzie and Fidelity funds before eventually many years later leaving the high cost world of mutual funds forever.
In a new study by the Bak of Canada, Canadians owe 168% of their disposable income to credit card debt. This statistic is actually trending down if you can believe it since 2016. That is $1.68 in credit card debt owed for every one dollar a Canadian makes. It seems I'm not the only one addicted to plastic.
I think the population just looks around and sees their provincial and federal governments in debt and decides that I might as well too. Just don't be like those guys, they have the power to tax other people for more money and you and I don't.
Get out of debt, save some money and invest the rest for your future retirement and post working life. It really is the only way to live. I wish my kids would listen to me every once in awhile.
If this is you, start by reading this new book a Worry-Free life and get your financial house in order before it gets out of control.
I could go on about the hazards of this debt lifestyle but if this has been you then you already know how pissy a life it is to be in debt. Get out now while you still can. Make more money or cut your expenses. Go over each and make the necessary changes to make a better life happen.
Are you a debt junkie? What have you done to get out of debt?
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