The Debt Clock that Really Matters

I’ve noticed a massive amount of attention placed on the U.S. debt clock, which is a depiction of just how much debt the United States is racking up each second. It’s horrifying to watch, really. The United States is amassing debt every day that most of us can’t even comprehend, and it ultimately affects the lives of every single American.

But the debt clock that really matters, right this second, is your own personal debt clock.

Just like the U.S. debt, your own personal debt increases every second that you owe a company money on car loans, mortgages, credit card balances and lines of credit. Companies are making massive amounts of money off of giving you the “privilege” of borrowing what you need to live the lifestyle you want. That’s just business, of course.

But your personal debt clock isn’t just about money. Here are the kinds of debt that are forever ticking upward as long as you stay beholden to your creditors:

Retirement debt. Every dollar you spend in interest for buying crap you don’t really need is a dollar you can’t contribute toward your golden years. If you’re like most people, you’re waiting until you get out of financial debt before you really build your retirement savings full steam. But for most of us, that day never comes. We spend our lives paying for things like plasma televisions, luxury cars and fancy restaurant meals… and when it’s finally time to retire, we find that our golden years aren’t so golden after all.

Enjoyment debt. Can you really afford the things that bring true enjoyment when you’re chucking a large portion of your earnings toward debts for things you’re “supposed” to have? Your “enjoyment” debt clock ticks upward every time you can’t afford to see someplace new because you don’t have the money left over for travel… every time you skimp on a favorite hobby because you’re too busy slaving away to pay your creditors… every time you miss out on a social event because you have to put in overtime to cover your credit card overlimit fees.

Family time debt. When you’re worried about your massive credit card balances, you’re not focused on the people that really matter – your family. A trip to the park with your child? “Not today, honey… I have important things to do.” An evening reconnecting with your spouse? “Sorry, sweetie – maybe next weekend, after I get this damn bill paid.“

Health debt. This debt clock ticks away as you lie in bed at night, unable to sleep because your financial worries are swimming around in your head. It churns upward as you work through lunch to make a few extra dollars to pay your car loan, skip a visit to the gym to stay late at the office and grab a fast food hamburger instead of cooking at home to save a few bucks. As your “health” debt clock marches on, your physical and mental well being deteriorate… and even if you manage to pay off your financial debts before retirement (if you live that long), you probably won’t be in any shape to enjoy your senior years.

You can’t turn back your personal debt clock. But you can start – right now – to slow down the clock by committing to get out of  financial debt and never, ever return. The things you’re “supposed” to have (the ones you buy on credit) aren’t worth the price your personal debt clock demands.

Mike

Image by tpauly