A Debt Mission Statement

Every individual should have a Debt Mission Statement- this would be the structural foundation of your family's beliefs when it comes to debt. An example would be: "We agree to live below our means, not to pursue material wants without the money to afford them, never to use emergency savings for consumer purchases and to take on debt only when it benefits the family's long term goals or needs". Think about these types of statements for your family, this is just a simple example of the type of discussions you should be having. You need to develop a life debt philosophy that can be applied to very purchasing decision.
Several questions that should be asked when considering a purchase are:
~Will we pay cash for everyday purchases or maintain a monthly balance on a credit card?
~Will we pay off our credit card every month, or are we comfortable carrying a balance paying the minimum amount?
~Will we refrain from spending more than our monthly income, or can we occasionally overspend to afford a big purchase? If we have a large purchase how long until we will pay it off?
~Will our savings account remain untouchable except for emergencies, or can we dip into it to pay for certain expenses?
~What defines an emergency expense?
Don't only stick to your Mission Statement as statement on paper to look at, you have to apply it day in and day out. This statement will help you to avoid the impulse buys that drive you further into debt.