The Housing Bubble Blog was covering a story about a couple who bought a house a couple of years ago and then the wife, while unemployed, racked up $80K worth of credit card debt. They refinanced to cover the debt and then “discovered” new debt because the wife kept on charging. In this case, owning a house not only discouraged saving, but encouraged spending.

Their house is up for sale now because it is the only way they can pay off that pesky credit card debt. The ironic part of the story, to me, was the “we discovered new credit card bills” part. For some people, there is a disconnect between whipping out plastic at the check-out stand and opening their mailbox a month later to find a bill.

Some people cut up their cards and only buy items with cash to force themselves to get out of debt. There’s something about actually seeing money leave your wallet that makes it more precious and “real.”