Have you ever heard of debt addiction?  I think I made up the concept when I started coaching an Agent who was below broke (in debt) earning around $50,000 a year.  After our first year of coaching she was earning over $100,000.  She told me that she might have to stop coaching.  Why?  Because she was so far in debt, I never anticipated that a person would increase their debt faster than their income. 

Then again, it is not foreign to me.  Back in the 1983 I bought a Real Estate company.  By 1986 we were number one in our market with lots of productive Agents, a great staff, very successful by every measure; every measure except profitability. 

By the time I realized that we were in financial trouble (1989) we were nearly $100,000 in debt and our expenses exceeded our monthly income by over $5,000.  So, by the time we could reduce overhead by enough to start paying off the debt we owed nearly $125,000. 

Oh, I have a sign that you are debt addicted, two actually.  One happened to me, that is when you are already in credit card debt and you get another card in the mail.  You look for the line of credit you are being given, let’s say $5,000 and you feel like someone has just given you a $5,000 gift.  If you feel that way you are what I call debt addicted.

The other sign is one that the above client shared with me.  She said she would already have more Real Estate tools than she used and she still bought more.  Here’s the key.  She didn’t tell me as her coach that she was doing that.  And, she fought with her husband about the purchases, making the purchase every time. 

I don’t know if there is really something called debt addiction.  A psychologist friend of mine and I discussed it and the behavior and belief system has all the signs of clinical addictions.  I just know if you think this is happening to you, please start to measure your debt and manage your money.  Seek professional help from credit counselors to psychologists or anyone else you think might help.  You deserve to enjoy the freedom and opportunity provided by a successful Real Estate career.