Spending Money You Don't Have

This is becoming a more and more common problem in the United States. It has become extremely difficult for the average person to get by in life without using some borrowed money. We all remember getting our first credit card. Maybe you got it to help out with school. Maybe you got it because you were turning 18 and it was a sign to show that you were asserting your independence. Whatever reason you got it, you have one, probably more than one. When I got my first credit card, I always paid it off immediately. I got a job around the same time, and I was going to school. Gradually, I had to use the credit card more and more to make payments for college. I had to use it to buy books, and to pay for daily expenses. My job just wasn't quite making the payments anymore. So, I got more and more into debt. I had to take out a second credit card to make up for the slack brought about by the first one. The scary thing is, most Americans can identify with my situation precisely.

A credit card seems like a get out of jail free card to a young college student. You get money for nothing, you pay it back later, no problem. But, it is all too easy to let your spending get out of control. Buy a pizza, put it on the card. Books, put it on the card. Tuition, new shoes, a few movies, a new CD, put them all on the card. Before you know it, you're five dollars away from maxing out your card, and you have some payments coming up.

I'm not saying that you shouldn't get a credit card. They can be a very helpful resource in emergency situations, but we want what we want when we want it. It's not easy to ween yourself off of using the credit card, but it may be essential to keeping your life financially on track.

First, you need to set a strict budget for yourself. I would suggest keeping yourself on a strict budget throughout life, to really get some savings for yourself. However, you may want to terminate all frivolous spending from your budget at least until you are out of debt. Yes, it hurts, but so does being in debt. This means no eating out, no buying new clothes or shoes until your old ones are absolutely unusable anymore. Don't buy any new movies or CDs, and it also may be smart to take out a small savings account and let interest build. When I say, "strict" I mean "STRICT!" So, sit down with a pen and piece of paper and budget yourself.

Second, depending on how far into debt you are, you may want to consider getting a second job, getting a better job, or finding a way to make some extra money. I write for AC. Remember, this is not pocket change. All this money should be fitted into your budget. Again, this hurts, but if you don't put every dime you have into getting out of debt, then you won't have any dimes left in the end.

Third, forget the "Get Rich Quick" schemes. I don't care what the people on the commercials say, you can't take a chance on that. For every 10 people who are giving you their success story, there are at least 500 who are worse off than ever.

Like I have said, none of this is easy. You may have become accustomed to a lifestyle that your finances just can't keep up anymore. You have the power to get yourself out of debt. You're going to have to live like a person without money to get any money back. It is possible, and you can do it. The only magic wand that can fix all your money woes is this: Responsibility.