I don't know about you but I don't like debt and as I get older I like it less. There are lots of friends and people out there who have 10 and 20K in credit card debt, own little of their home and owe significantly on their cars. While some of that such as home and car debt are normal the credit card debt should be paid off in short order. Ideally, it should be paid off every month because the interest you save could be used for making your house nicer which raises its value (..one thing to do with it. There are others.)
Like many of you, I was not born with a silver spoon in my life and have had to deal with all the unfairness of life. Yes, there are unfairness and there are those who encourage that unfairness. So, I come from the school of hardknocks and have built my way to where I am now (wherever that is. :). My best advice is to minimize your debt as much as possible.
One thing I have done is everytime I make a purchase on my credit card, which provides protections that my debit card doesn't, is that I add a little extra. For example, I put $100 on my CC then I might pay $120 that night when I get home. (I'm not sure the bank likes but I shouldn't have to work for them so I try and pay of my debts as best I can.).
A few things....
1.) Put extra down.
2.) Keep balance low.
3.) Ask yourself it truly adds value to your life and is worth the purchase.
4.) Are you putting away enough for assets and retirement.
5.) Don't care what your high debt friends are buying and just do your own thing.
In the chart it looks like Michigan is about average, California higher.
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| Source: virtual capitalist |
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