America is a country that runs on debt. In fact, most of us are in some type of debt or another. 80.9% of baby boomers are in debt. 79.9% of Gen Xers are in debt. 81.5% of millennials are in debt. That’s a large number of people! While most of them either have a mortgage or student loans, there’s a lot of different types. From credit cards to medical debt, we’re struggling to keep our heads above water.
When people find themselves in debt, it seems they do whatever they can to make the problem worse. They want to maintain their lifestyle, so they abuse their credit cards. They can’t maintain the status quo by saving, can they? And they know that if things get too bad, they can just declare bankruptcy.
But it’s time to admit there’s a problem. You can’t sustain a lifestyle on debt. Living above your means is not the path that leads to financial freedom. Worse yet, you could be leaving a pile of debt for your children to deal with. If you find yourself with this problem, the time is right now to take the bull by the horns.
Should People in Debt Go on Vacation?
We’re not here to tell you what to do. Rather, we want to encourage you to look at what you’re doing with your finances. If you’re in debt, you may not see it, but there are flashing DANGER warning signs all around you. No one is impressed if you saved up for your vacation this year. It’s not impressive to anyone that you’re taking your kids to Disney.
Why? Because if you’re in debt and going on vacation, you’re being financially irresponsible. Is taking the kids to Disney going to matter when you haven’t even started saving up for college? How much money do you have put away in a rainy-day fund for an emergency? Can you afford health insurance and retirement payments?
If the answer is no, you’re putting yourself and your family in danger. Taking that vacation is irresponsible and unimpressive. You don’t have the important things figured out. But don’t worry! There are a lot of other Americans who decide not to take their vacation. Instead, they understand the value of putting their money towards something more important.
Americans Forgoing their Vacation
Bankrate.com released a new poll recently that found millions of Americans won’t be going on a summer vacation this year. They cite their debt as a reason why. 44% said their monthly bills were too high. Many find that taking a vacation would end up putting them even deeper in the hole. That’s enough to take the enjoyment out of the trip.
“While a vacation is worth it, getting into debt isn’t. That just adds to the stress and takes away from the enjoyment of your vacation,” says travel expert Christopher Elliott, who writes the Navigator column for The Washington Post. While that trip to Disney or to the Grand Canyon won’t be happening, there are alternatives.
“Yes, people can stay home and have fun,” says Elliott, author of “How to Be the World’s Smartest Traveler.” “Think of all the time you’re saving by not having to go to the airport or spend hours or days sitting in a car. There’s no ‘Are we there yet?’ because you’re already there.”
Staycations Are a Thing
Every city in America has some sort of tourism board. They have activities, events, picnics, fairs, and more. Rather than spending thousands on a vacation, stay home. Maybe you avoid your chore list for a few days. Camp out near a lake for an extended weekend. Find a community pool if you don’t have one yourself.
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There’s cheap (and even free) concerts you can attend. Head to the city and hit up the museums. There are plenty of local and cheaper options to choose from. This is incredibly important if you want to stay ahead of your budget. And you still get to spend valuable time with your family. It’s just more important to get your budget in order.
Getting Your Debt Under Control
If you’re having a difficult time with your debt, there are several things you can do. The first is to get organized. You may not have a full picture of what you owe and who you owe it to. Sit down and lay it out in front of you. Write up a list of every debt, what’s owed, monthly payments, and so on. When you can see it in front of you, it helps you see what you’re up against.
If you have a lot of debts, you can try to consolidate them into a single payment. This can help save you money and lower your monthly output. Having a little extra money will help you be a better saver and put money towards worthwhile things. You can even refinance your auto loan and mortgage to get a better rate.
If you’re struggling with student loan debt, you may be eligible for a repayment plan. Repayment plans can lower your monthly payments based upon the money you make. They may even help you pay off your loan quicker than you realized you could. Again, putting a little extra money in your pockets can be a lifesaver when you need it.
Finally, learn from your mistakes! Make on-time payments to keep your credit in the green. Having good credit can help you through this process. Be proactive about your debt. Don’t just let it linger and not give it the attention it deserves. You’re not truly financially free with that black cloud hanging over your shoulder.
Photo by: Ryan McGuire
