By Michael Mihalik.
Debt has a dramatic impact on people’s lives. According to the federal government:
· Today’s consumer has an average of 13 debt obligations on their credit report
· The total amount of debt owed by Americans is more than $2.5 trillion. $8,500 per person on average.
· 38% of the $2.5
|Debt has a dramatic impact on people’s lives, and Michael Mihalik was no exception.|
trillion comes from credit card debt
· The average amount of credit card debt per card holder is $12,500
· 74.9% of families have credit cards and 58% of those carry a balance.
To reiterate, debt has a dramatic impact on people’s lives, and Michael Mihalik was no exception. Mihalik, author of “Debt is Slavery and 9 Other Things I Wish My Dad Had Taught Me About Money” from October Mist Publishing (www.debtisslavery.com) , is now a successful mechanical engineer, but he got deep into debt during his college years. Michael has since refined his philosophy about money. Once he changed his attitude, he realized his first step toward personal economic recovery was to stop accumulating debt.
Mihalik’s lesson is simple: “You don’t have to charge expensive items on your credit card to get into trouble. Unchecked spending — a few dinners, some clothes and maybe a short vacation — can result in balances you can never pay back on your existing cash flow. The result is that every hour you spend at work, you are actually working for the credit card companies, because they’ve spent your paycheck before it’s cashed. That’s how debt becomes slavery. You are now a slave to the bank, with your debt as the ball and chain that binds you.”
“You can’t get out of debt by simply changing the way you handle your money, or making a savings plan or hiring a credit counselor,” Mihalik says. “In order for any tactic for getting out of debt to work, you must first change the way you regard money, and understand how to be its master, as opposed to allowing debt to master you.” HBM V17-6 Add: 5/12 HP: 10/31/12