In-Debt Mindset

Americans are pretty easygoing about a lot of things, including debt. When confronted by rising prices, declining home sale prices, and higher-than-anticipated jobless rates, most Americans act as if this was barely as interesting as, say, the latest news blip about Britney or Angelina. True, economic news is boring (excuse me, I must have nodded off). But there is a reason we should notice at least some economic news, even if we don't wade knee-deep into the economic blogs and reports.

Economic news is like the weather. If you hear on the news that it's raining, you'd be crazy to go out without taking appropriate precautions. Precautions don't mean that you need to run around your house, holding your head in your hands, your mouth open like that Scandinavian nightmare painting, shrieking, "Run for your life! It's raining!" Instead, a sensible person would take an umbrella to work. He or she might also wear old shoes or grab a raincoat. If you're the kind of person who walks or bikes to work (yes, they exist), you might re-think your normal mode of transportation and hitch a ride.

The point is, we adjust. We know that there are times to bring an umbrella, take a sweater, or wear shorts and flip-flops.

When it comes to economics, however, our in-debt mindset encourages us to try very hard to live as if every day was the day we wished it would be instead of the day it is. Gas prices going up? Use the same amount of gas. Unemployment higher than anticipated? Continue to antagonize the boss and show up later and later for work. Grocery prices climbing? Keep buying the same stuff. Just lost your job? Do a little retail therapy, you'll feel better. It's only plastic.

For some reason, we normally flexible Americans find it very hard to let our spending ebb and flow with market conditions. There are times to spend, but there are also times to cut back. There are even times to skrimp, although that's not a very popular word in our society, even in these unsettled economic times.

Too many of us think that debt can get us over the rough patches. Sure, things are high now. Just put gas on the credit card and pay it down later on. Things are bound to get better in the future.

While there are situations that make debt a good option, even a downright necessity, driving to the mall for a spending spree followed by drinks, dinner, and a movie isn't one of them.