You may have noticed, January is infamous for talking about the #1 thing people (men and women both) want the most. And that is how to lose weight.
This trend is something that happens every year! Whether that is something you talk about or not, whether you have a plan in place or not, the verdict is that it doesn’t work for everyone.
But I’m not talking today about weight loss. There is another topic that is just as toxic each new year but isn’t talked about so much … I’m talking about that heavy anchor of debt weight loss.
Prevalent issue – Debt Weight
It’s a prevalent issue and although people don’t talk about their debt so much on social media, they beg and want to know how make more income.
I didn’t know until I read some figures and I feel like you should know…
It’s a HUGE problem faced by about 80% of women and men who struggle with their debt.
But nobody is really talking about it.
The latest statistics from the Federal Reserve indicate consumer debt in the United States continues to increase, reaching nearly $3.2 trillion in July 2014.
That’s consumers… you and me.
According to statistics published by the Census Bureau, that works out to over $10,200 in debt for every man, woman and child that lives in the United States. The statistics are similar up here in Canada. Stats Canada confirms that Canadians have incurred as much debt proportionally as Americans whose population is 10 times more.
Consumer Credit is Staggering
Roughly 26% of all consumer debt (as of July 2014) is termed revolving credit. This is credit that is repeatedly available as periodic repayments are made to lenders. The most common type of revolving credit would be credit card debt.
The other 74% of that debt is derived from car and student loans, as well as money borrowed to purchase boats, trailers, or even vacations. In fact, these statistics tell us the average new car loan is over $26,700, and the loan to value ratio is 80%. That means new car buyers are using down payments that are 20% of the car’s purchase price.
And yet, the internet is buzzing with people wanting to earn more. What’s more, every tom dick and harriet is willing to charge them how to do it!
Sorry, but this annoys the heck out of me!
You might have misread the subject line. I wrote debt weight loss, not weight weight loss.
After reading up to here, are you guffawing and wanting to quit reading on? Or is this something you would be interested in hearing more about?
Earning more does not cure the internal habit of acquiring debt!
Here’s the rub I want you to get. Because really, earning more does not cure the internal habit of acquiring debt!
Creating debt is a habit. It’s a bad habit.
A habit is a lie you tell yourself in your head and in your heart over and over until you decide it has truth and validity.
You choose your actions. Sometimes those actions are prompted by erroneous thoughts.
As someone who is debt free, I know what I’m talking about.
Some of my coaching clients were just like you, delusional about the truth about debt. They strongly believed that if they made more money they could pay off their debts and they would be happier.
The reality is, it doesn’t matter how much money you bring in, if you don’t deal with the underlying habit of creating debt, no added amount of income is going to fix the problem.
What happens is, without becoming aware of the habit, will only get you in deeper and deeper and deeper. Now you have a debt weight that feels heavy and black.
People are frustrated with their own bad habits
People are frustrated that they don’t have enough money to support themselves and their families. They want opportunities to earn more and I don’t blame them, life costs.
If I’m being told totally honest here, I’ll tell you right now it doesn’t matter if you get more money if you don’t first break the habit of creating debt. What happens is you wind up spending more because there is more.
Here’s the key: once the habit to spend is curbed, a new habit must be formed. In fact 2 new habits must be formed. #1 is to live within your means. #2 is become diligent, responsible and accountable paying bills so the bills don’t overtake you.
Are you someone who has debt weight issues?
Stay tuned because I have a program ready for you very soon – a 21 Day Debt Weight Loss Challenge. Its specifically designed to reduce and eliminate a bad habit. Stay tuned because details are coming very soon.
And remember, great job today!