So, which is worse?

Going to the dentist?

Replacing the tires on your car? or –

Making your payments on your credit cards?

Let’s break it down. The positive to the dentist lies in preventing more serious problems with your mouth and taking defined steps to improve or maintain your health and smile All good things. The downside is the time in the dentist chair with question being asked to you – which you cannot answer because there are hands and devices in your mouth! Also, the potential for pain (typically minimal) and the need to pay the bill (with or without insurance).. (My partner made me say that about the dentist… I really don’t like the dentist but I go every six months without fail)

Now, let’s talk tires. You gain the knowledge that you and your family will not suffer an accident due to worn tires – that’s a positive. If you’re a gear head – perhaps you gain a thrill by having raised letters on the sports tires – (if tires still come that way). That’s about it for the plus. The negative is – who budgets or plans on Monday to spend $$$$ for tires on Thursday! If you ask me, tires are worse than the dentist.

Onto the credit cards. By making the minimum monthly payments, you gain the satisfaction that you will be able to continue to use the cards – to the extent you have any available credit. You also may find it satisfying that the job of “paying the bill is over” for the month.

Also, if you are among the millions of consumers who have been brainwashed by the financial industry, you gain the satisfaction that by paying on time – you have not injured your credit score. On the down side, you may have lowered the current balance in your checking account to a point where there remains insufficient funds to make it to your next paycheck, the money you have just paid does nothing in the way of lowering your current balance because it is all used and applied to cover the 16% to 29% interest they are charging you – and when you need to buy something next week – you need to use the card again since you have no cash.

To make it worse, if you take the time to think of it – over a 5 to 20-year period – you are wasting thousands and thousands of dollars by paying interest on the cards – which, if you were doing the right thing, would instead be going toward savings for retirement. If your thought process acknowledges this (something the credit card companies don’t want, you to know!) – this is a depressing thought. If you ask me – paying the credit cards (or having credit card debt), is far worse than buying tires or going to the dentist!

These decisions are yours and only yours to make. It’s your call on the dentist, tires, and paying credit card payments. In my view, you’re right with the dentist (in spite of the fact that really no one likes going to the dentist) and keeping good tires on your cars. As to credit cards – that’s a different story. You need to STOP THE CYCLE of paying every month and leaving the balances as they are or increasing – bit by bit – for eternity.

On this point – it is never to early to Shed the Debt, Not Trim It! If that has a positive ring to you, call today for a free in person or virtual consultation, 248.645.1700.

Have a great weekend.