Money management: a crippling problem in today’s America

From the time I was a child, my granny always said I loved water. There’s just something about the calm that happens when you hear nothing of the world that surrounds you and you are just able to concentrate on floating on the surface with the sound of your breathing and the gentle waves.

One of my favorite exercises during my competitive swimming days was sinking to the bottom of the pool and kicking off of the bottom to propel up.

Over the past few years, I’ve felt that sinking, but not in a good way.

I’m talking debt.

Debt does something to us psychologically and physically. More often than it should, debt or financial woes ruin marriages, job opportunities, our livelihood and sometimes, it tears families apart in the most tragic of ways.

It’s a situation that brings so much guilt, stress and anger. But why?

I believe that in one aspect, debt takes away the security that famous psychologist Abraham Maslow discusses in his theory of the hierarchy of needs. Basic needs for humans include breathing, food, water, sex, sleep, homeostasis and excretion. Above that lies security of the body, employment, resources, morality, family, health and property.

When our sense of security is gone, it throws life off of balance — affecting our mental and physical health.

When the stress is an ongoing issue, we are more quick to anger and depression; which trickles down to our children, spouses, parents and other close relationships.

For the better part of eight years, I have used credit cards like my life depended on them — for a time, they actually did. At the ripe age of 19, I thought about the future and decided I needed to start building credit. So, I applied and was approved for my first card. Armed with a $300 limit, I told myself that it would just be used for gas and emergencies and followed Granny’s directions of not charging so much that the balance couldn’t be paid off the next month to avoid interest.

It worked for a while, and the company steadily raised the limit on the card after faithfully making regular payments as a “reward.” I remember being so proud to see my credit score rise.

One day, I found myself in debt $600 and having that sinking feeling, terrified and wondering how it would be paid off within that month. Now, it seems almost laughable.

Through the years, I’ve found myself a few grand in debt and eventually being able to pay them off, obtaining a few new cards here and there. Before too long, my credit score was in very good standing. I felt so powerful having a great credit score. Sure, it required being in debt to get there, but it was so easy to open new lines of credit.

Eight years later and as many accounts, the result? Terrible credit, unachievable minimum payments and the relentless phone calls — it was like being backed into a corner. “Why are you late making payment?” “When will you be able to?” Those are just a few of the questions that one faces when receiving the calls. If they can’t reach you by phone, they will send certified letters.

That downward spiral continued and hopelessness took over and I felt that rock bottom punch to the gut. There were many nights that insomnia took over, the wheels constantly clicking and wondering who would call the next day, or if a letter would pop up in the mail. Tears streamed and I prayed. I prayed for a solution to what seemed to be a hopeless situation.

The solution came within days when I discovered Dave Ramsey on a Facebook post. I immediately went to YouTube and began to listen and watch his Financial Peace University teachings. What an incredible concept he teaches people just like myself. I’ve been hooked on watching his videos since then.

So, to begin this new journey to become debt free, a plastic surgery celebration was in order. Plastic surgery, as Ramsey puts it, involves cutting up every card.

It was scary, and I found this strange loss to these pieces of plastic that had been a part of my life for so long. But it was liberating as well.

Is it actually possible to live without a line of credit? I think so. Certain things may not be quite as easy, but I do remember a time before the plastic came into my life.

Unfortunately, the majority of Americans live this way. Between student loans, car notes, house payments, credit cards and a multitude of other lines of credit, it’s easy to fall into the hole. Let’s not even talk Murphy’s Law. Every day, Americans are filing bankruptcy and looking for the right solution.

Sometimes, it takes being backed into a corner to fight back.

Kelsey is a staff writer and page designer for the News-Times. She can be reached at [email protected].

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