What is a debt douchism you may be asking yourself? Well it’s a term I just invented to describe situations in which using debt is a douche bag move. For today’s post, let’s take a look at three doushisms…
Case Study One: Rolling one car loan into a new car.
I don’t know what your opinions are on buying a new car, but I am a firm believer in the 100% cash plan. I do acknowledge, however, that there are quite a few PFers that have no problem taking out a loan on a new set of wheels. Financing a car in and of itself is not a douche bag move. The super douche moment comes when an individual owes $30K on his 2007 BMW X5 and is trading that car in, and rolling over his loan in to the new 2009 BMW X5 because it now has a built in DVD player. Car debt is not necessarily a bad thing, but when you ALWAYS have car debt and are constantly rolling old debt into new debt, then you sir are a douche.
Case Study Two: Paying minimum payments on your Credit Card.
Let me clarify. You might be a douche bag if… you are paying minimum payments on your credit card, when your income allows you to pay much more. Don’t get me wrong, I love my freakin’ credit card. I use it for just about every purchase I make and it comes with some pretty sweet perks. If I had to choose between my girlfriend or my Visa….well, let’s not go there Credit cards are wicked awesome when used responsibly, but wicked retarded when used carelessly. If ya have $10K in credit card debt, and are only sending monthly payments of $20, it’s time to rethink your priorities and get your act together.
Case Study Three: Spending more than you make.
If you spend more than you make, I’m just gonna be honest…you are a douche. That is, unless you are in some type of emergency situation and have no other way to support yourself. The mega-douches, though, don’t give a poop how much they spend on random, useless stuff. Ya can’t live a Louie Vuitton lifestyle on a Kentucky Fried Chicken income. I once was a mega douche, living outside of my means, but I heard the financial gospel and my life has been changed. Life is better when you’re not drowning in debt.