It's a simple rule that many people can't seem to follow. I've said it before that many people seem addicted to debt and expect to borrow against everything to live in the moment. Ordinarily, I see people refinancing with mortgages to consolidate their debt, but I've seen other things, such as giving up a business as security, offering to allow wages to be garnished in advance, and secured lending with an owned automobile as collateral. Why can't people just save up for things and buy them when they have enough saved?

I was playing poker with several friends who held MBAs and they were telling me about a new version of the board game Monopoly that did away with the concept of cash and allows the use of credit cards. I guess on one hand Parker Brothers wants it to be more realistic, but on the other hand, it doesn't teach kids fiscal responsibility.

An article came out from MSN Money discussing ways in which one could abandon the use of credit and focus more on spending within a budget. To me, the items contained there are pretty common sense, but I guess a lot of people just need to hear it again.

In today's economy, homeowners cannot simply rely on increased housing value to refinance their property and cover their debt. Homes were never meant to be credit cards and the current housing situation clearly shows that they cannot be used as such for the long term.

 

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