In the case of most people, managing credit and debt is the ideal, but they fall short. We learn about basic math in school, but we seldom really learn to understand debt, credit and the dangers of both. In today's world, many have been raised by parents who depend on debt and credit to buy things they really can't afford. This has been our example. Our government doesn't give us a better example. They also live on money they don't have, or rather, money we don't have.

With no example, where do young people look for wisdom to know how to manage their money? Fortunately, there are people out there beginning to see that living above our income is not a good thing. Life is hard enough without being drowned under debt, even if we don't drive the newest cars. Most young people either go into debt for college, or as they enter a marriage. They often spend too much money on a wedding and then go into debt so they can have a house and a car and all the things that are considered necessities' today. Then the bills start coming in, and they extend their credit so they can make it, and the bills come in and so on until they are under a debt they don't know how to get out from under. Debt management may help, but it doesn't solve the problem.

So what is the problem? The problem is that we have not learned to live within our means. We feel entitled to certain things, and we are willing to go into debt to have them. We want things now instead of patiently saving for the day we can actually afford it. These are not the values of our fathers, and these should not be the values of our children. If you have money for what you need, there is no need for credit and hence no need for debt.

Toward that end, I would recommend for youngsters or oldsters that they have a savings account and save for the things they want and need. Set up a budget and live on it. Pay God (if that applies); pay yourself; then pay your budget accounts with cash. When the cash is gone, no more spending in that category. This takes discipline, but in the end you will have so much more than the rest of us who have squandered our money in interest fees and such.

If you must build credit, do it by getting a loan that you pay back right away. You do not need credit if you don't plan to borrow money. Many out there have a vested interest in making you believe you must have credit, credit cards and debts. They make their money on it, so of course they want you to believe it. But, I am here to tell you that is not the truth and for many of us, any credit cards make it too easy to spend when we don't really have the money.

It's time for people to wake up to this lie and take back our lives from the credit sharks, even the well-meaning ones, by living within our means or raising our means if we want more.

Learn more about this author, Angela S. Young.
Click here to send this author comments or questions.

---

Add your voice

Know something about Reflections: Managing our finances the old-fashioned way?
We want to hear your view. Write now!