Sharing Daily Discoveries About Personal Finance And Business Topics

Dealing With Static Debt

So I was managing this budget for an activity club and it seemed like it has been growing to the point where at times people had to be left out due to the lack of space. Therefore, the only real way to accommodate more people is to expand particular resources which of course means more money. The good thing was that budget wise I was able to manage everything where the debt that they have is very miniscule and static as all resources are paid on a yearly basis. But as usual, in these cases debt is debt and from what I saw if they wanted to expand they have to pay this off first.

It was interesting as a person who wasn’t too into the finance was suggesting that since it is so little that we should just spend more anyways as it would add to the debt so little and that it shouldn’t be an issue in paying it off. Basically, that way the club would be able to accommodate everyone right away without delay. This just reminded me on how people with credit cards accumulate so much debt and by the time it gets to the end of the month the debt just gets so high that they get more lazy and try to sway it off completely.

I always like to view static debt like these as kind of like having too much food around you. Basically, if you don’t finish what you have in-front of you before insisting to put more on the table eventually everything is going to get spoiled and not to mention the bad habit of being wasteful.




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