When most people consider such a question what they really are considering is whether a person can afford to make the minimum payments on it or not – what ever IT happens to be at the moment. A house, car, boat, RV, lawn mower etc. To me whether or not you or I can afford something is a simple matter. It has nothing at all to do with income to debt rations or credit scores or any other such things – it comes down to this: Do you have the cash on hand right now to pay for it in full? When I say cash I mean your own money that you have in your possession right now that is not borrowed in any way shape or form. Its yours to spend and do with as you wish. If you don’t have it then you cant afford it. It really is just that simple.
Of course that is not what you or I were taught though is it? Society conditions us all to think of affordability in terms of payments – not payment in full up front. That is why so many people are so deep down in the rabbit hole of life long debt. In truth financing stuff benefits the few at the expense of the many. Lenders gobble up interest and fees eroding the true buying power of the people.
Impulse purchases are made so easy that it is very hard to say no when all you have to do is sign and take it, or swipe the magic plastic card. Then of course you do have to remain in the rat race and stay at least a step ahead of the eternal bills in the inbox and mail box every month for life. The true cost is hidden by the deeply conditioned belief system that consumer debt is not only NORMAL but that it is preferable to paying cash for things.
So not only do millions of people wind up deeply in debt and on the brink of personal financial disasters – they wind up with garages, basements, closets and storage units full of junk they don’t need, seldom if ever use and in truth can’t afford.Before you dismiss the idea – take a long walk around your own home and look in all the cracks and crevices and see how much stuff you personally have accumulated that you don’t need and don’t use. How much of it was bought on a credit card or an installment plan or loan of some type?
Something to think about, and then if you decide to change your life read Extreme Debt Elimination.