To rob Peter to pay Paul means to take money from one source to give it to another. Usually, robbing Peter to pay Paul means taking the money to pay off one debt to pay off another debt. Basically, It is a situation where there is not enough money to go around and one must choose which debt is more urgently in need of payment. Yep, that pretty much sums up the way most Americans are managing their finances these days!
I'm not sure how it happened, but somehow people see debt as a good replacement for cash; in this case, the abnormal has become the norm. They'll open a new credit card account with a better interest rate to pay off another, and before you know it both cards are maxed out because they couldn't resist using plastic when they wanted to spend what they didn't have - they Rob Peter to pay Paul.
Most people refrain from adding anything to a savings account for "a rainy day" as long as they have a little room on a credit card "just in case," and when the "just in case" comes along they'll go deeper and deeper into debt because of it. They Rob Peter to pay Paul.
Lots of people see a little equity in their home and they begin to salivate to get their hands on it instead of letting the equity build wealth. So, like a giant ATM with strings attached, they cash out the equity with a refinance so they can pay off other debt and they wrap it all into a brand new 30-year loan commitment and they're willing to pay twice the original debt for privilege- Robbing Peter to pay Paul.
"Robbing Peter to pay Paul" is just as bad as it sounds. It will never make sense to turn to debt to pay off debt and it's no surprise to find people never getting out of debt or building wealth because of it.
It's time to get back to the "old days" in terms of finances. Back to a time when paying off debt was a priority, having a cash nest egg for those "just in case" days was the norm, and leaving behind something for the next generation besides forcing them into the position of trying to make sense of the debt we leave behind.
Getting out of debt doesn't take a windfall, a refinance, or winning the lottery but it does take a well-planned roadmap to get us there. A roadmap that can help us determine the fastest way to debt-free and one that can help us knock off as much interest as we can in the process so that our principle gets the attention it needs to dwindle away quickly. Since our way of doing things goes against the flow of common sense and wealth building, a financial GPS system is the only way to go to get us there!
If you aren't familiar with a financial GPS system it's time to educate yourself so you can stop robbing Peter to pay Paul and break the bondage of debt once and for all!
Your family will thank you for it and the peace of mind is priceless!