Can you afford your own life?

Do you feel like you’re drowning in debt, or do you live within your means? Many young people owe thousands of dollars in student loans. Money spent on education should lead to financial freedom in the long run. This is not always the case, however. Newlyweds often find themselves drowning in debt. After paying off an expensive wedding, they face a higher cost of living with new expenses such as a mortgage, day care bills, and health insurance. While some families dig themselves out of debt and begin saving money for a rainy day, others remain in the red throughout their lives.

Living debt-free is not easy. Without loans, we wouldn’t be able to buy homes or pay for post-secondary education. Financial experts call these debts that lead to assets “good debts.” On the other hand, debts on a credit card are usually “bad debts.” People buy cars and vacations they can’t afford, and then pay high interest for unnecessary purchases. Some people use one credit card to pay off another. They rack up huge bills and spend all of their earnings paying off the interest. Have you ever found yourself still paying for something you don’t own or use anymore? Getting out of debt takes hard work!