Business troubles – Text
Check unknown vocabulary before you read the text:
Shortage – very low amount
Overdue – after the payment date
Overdrawn – in excess of credit
Turn down – to refuse
Avoid – to keep out of the way
Counterproductive – not productive; working against productivity
Procrastination – delaying something unnecessarily
Put off – to delay
Cope with – do something about
Deserve – have the right to something
Spouse – husband or wife
Foster – to promote
Keep up with – keep the same pace
Max out – to reach a maximum
Problems with money
Psychiatrists say that realizing that you have a problem is the first step towards solving it. There's no shortage of people who will tell you, loud and clear, when you have financial troubles. Overdue bill notices will come in, your checking account will be overdrawn, credit cards will be denied because you've reached your limit, you'll be turned down for a loan, etc. So, when it comes to money, realizing you have a problem isn't very difficult. It's solving the problem that seems to throw people.
Psychology definitely plays a role here. Even after people realize they have a problem with money, they engage in behavior that seems to actively avoid addressing the problem, and actually make that problem worse. Here are some examples of those counterproductive reactions…
Procrastination.
Most problems in life tend to get worse if you put off dealing with them, but with money, there is an explicit cost to delaying – it's called interest. Putting off coping with debt is like leaving a taxi with the meter running. That's why doing nothing about your money problems is not simply a neutral position – it means you are making things worse every day you fail to act.
The “my turn” approach.
This is a trap that couples fall into. Money is tight, but Mrs. Simons decides she deserves a trip to the spa. Mr. Simons can see that, and thinks if she deserves a trip to the spa, then he should get tickets to next week's NFL game. Now, of course, it's Mrs. Simons' turn – and they take turns driving themselves deeper into debt. For couples, financial responsibility takes the cooperation of both spouses, and the best way to foster cooperation is to set a good example.
Hiding the problem.
Another problem couples run into is when one doesn't fully understand the extent of a problem, for example, a woman who consults her husband for help only when a credit card has reached its limit and she can't keep up with the minimum payments. What she doesn't mention is that she has three other credit card bills that are almost as bad. Solving money problems requires a plan that works towards an endgame, and to know what that endgame is, you have to know the extent of the problem.
Waiting to be forced.
For any or all of the above reasons, too many people fail to take action until they are forced to, but being forced means you have fewer options. At that point, interest and fees have added to the problem, credit cards are maxed out, and damaged credit makes new borrowing either more expensive or unavailable.