Wednesday, July 30, 2008

Why Some People Consistently Unable To Manage Debt?

Nowadays we can see that more and more people get bankrupt everyday and we keep asking ourselves why? Some of them were not even among the poor and unfortunate groups of people and still they've been declared BANKRUPT!!! It is mainly because they don't know how to handle debt and to save part of their money efficiently. Thus we can assume that this is mainly due to their lack in financial knowledge. As someone with a basic knowledge (or quite competent I believe myself is) in the finance sector, I’ve read a few books on how you can handle and get out of debt. So to all readers out there, I hope with this blog that I’m about to write it can help you to manage your money more efficiently and finally have that saving you had always wanted.

There are four types of debtors or borrowers which are Wishers, Wasters, Wanters and Winners. To be able to manage your debt, you need to know what type of borrower you are and what type you should become.


Wishers are credit optimists. They have the sunny perception that they deserve the good things, that they had always wanted, that they are meant to spend it all and can easily afford it. In their happy dreamworld of credit optimism they focus on the monthly payments, not on the overall debt. Wishers, as optimists, see a brighter next year for themselves, a better job, with more income, a future whereby all money issue will be resolved. Unfortunately, not all wishes come true. Little that they know they are just going up the hill with their debts.


Wasters spend money as an escape. With low self-esteem issues, they use money to purchase things in order to feel better, relieve stress, and to escape from their problems. They like the feel and sense of something new and by spending, they feel that they can end the emptiness that they feel. But soon after the empty feeling returns there are still bills to pay. Wanters
The Wanters are those who want it now and never and won’t even think on the consequences. With low self discipline Wanters couldn’t put off immediate gratification to reach long term goals. The issue of paying for all of it later inevitably becomes a problem. Soon they will realize that they are heading for a big debt trap.

Credit Winners use good debt to their advantage. By understanding more on the credit system they are making far more money than the banks will ever hope to make. They only make debt if the debt can give them some return or profit. Winners also can put aside their immediate gratification for a bigger and greater goal.

So, to be able to manage your debt you need to identify which type of borrower you are. And you should know which type you should be, be the Winners of course!! Know your debt and make more Good Debt because Good Debt Makes You Rich and Bad Debt Makes You Poor. Signing out. TheWonderWomen.

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