3 reasons your members are in debt

If you’d truly like to help your members become debt free, you need to first understand why they’re carrying debt in the first place…

Too much envy: Far too often we envy the “stuff” that other people have. Some of us are susceptible to making purchase due to FOMO (fear of missing out). Occasionally those purchases can put a member in a large financial hole. Recommend they walk away the next time they feel an impulse buy coming on.

Not enough savings: Sometimes you’re doing good with your finances and then something unexpected happens and suddenly you’re saying “yikes”. The best way you can help someone in a similar situation is to recommend they funnel part of their direct deposit into their savings account. Even if they need to spend a good chunk of those funds on their debt, putting SOMETHING into savings every pay period will help build those emergency savings back up eventually.

Too much spending: This is often the biggest culprit when it comes to debt. We’ve all spent money we didn’t have. There are definitely advantages to having credit cards, but if you have a member that is only using cards to create massive debt, maybe they should lock them away until they can be used for good.

John Pettit

John Pettit

John Pettit is the Managing Editor for CUInsight.com. Web: www.cuinsight.com Details