Does it mean you are a bad person? Of course not! Big business does this all the time… In fact they are MUCH worse than the average Joe when it comes to this type of behavior… Extending on debt payments, defaulting on payments, sueing each other and blaming… It is a fact of life, but if you find yourself with bad credit, and you still need a loan, guess what… This actually can be good news! (And you have to remind yourself that you’re no Enron / Bear Sterns / GM / AIG / Big Company Name Here).
The only way to come back from having bad credit is to show lenders and other issuers of credit that you are indeed credit worthy and need to be given a second chance. Once you do that, and you are provided with a loan… Be sure to pay it back on time!
Oh, a $3.50 drink from Starbucks, it’s only $3.50! Well, do that 5 days a week for a year and you’re talking about close to $1,000 paid to Starbucks! Don’t get me wrong, I enjoy my Starbucks as much as the next guy, but I can also make a mean pot of folgers at home all by myself and keep the change. 🙂
That said, you have to enjoy the simple pleasures in life (like a cup of coffee), but you also need to look closely at any habits, hobbies or unnecessary expenditures that you may have and make sure that you’re not buying yourself into a debt problem. What often happens is we live day to day and are constantly making mini purchases that in and of themselves don’t seem like much… But when you add them up, WHAMO!