20 Things People in Debt Say (That Will Keep Them in Debt) (2024)

For a person to do what it takes to get out of debt, they need to have a total mindset change about money and start thinking about their finances differently.

That mindset change can be a very long time coming as I know from personal experience! The impact of debt can be easy to ignore, until it sort of sneaks up on you and hits you right where it hurts.

I was thinking recentlyabout some of the things people in debt often say or think when they can’t see how much of a problem their debt could cause them, in the future, if not already.

Take a look at these common statements or beliefs and my reasons why this way of thinking could cripple someone financially for a very long time.

1. When I get a payrise, I’ll use it to pay more towards my debt.

Yeah, but you might not get a payrise… you might even have to take a paycut or lose your job! Life has a funny way of not going to plan…

2. At least I’m making the minimum repayment, so I am actually paying my debt off.

You won’t really be paying much off and it could take decades to pay off your debt. DECADES! If you’re paying a lot of interest, then your debt could actually increase because the amount of interest added to the debt each month could be more than the amount you’re paying off the capital.

3. It’s not like I’m struggling, I can afford to make my minimum payments.

You can afford your minimum payments now, but what about if your circ*mstances change? You could fall prey to the minimum payment debt trap before you know it where you no longer can afford to make even those payments.

4. Once I’ve bought a new TV, car, house, etc, I’ll be able to work at payingoff my debt.

There’s always something that needs paying for, I get that. But getting rid of your debt first will help you save more money forthose big purchases without the stress of your finances being uncomfortably tight.

5. I had to geta new car (on finance), it makes better sense than buying an old car that will break down.

The trouble with getting a financed car is that it won’t really be yours anytime soon. You’ll be paying a fortune for the car over the time of the finance agreement (even double what the car is worth) and its shiny newness won’t last for long. If you fall behind on payments, your car could be repossessed by the lender.

6. I’ll probably get an inheritance in the future, so I’ll pay off the debt then.

Imagine how much you’ll have paid in interest by then! Plus, it’s crazy to bank on inheritance until you have it in your pocket.

7. I don’t think of my student loans as “debt” – they helped me get my education.

Yes, but they are a form of debt. In England and Wales, you don’t have to pay your student loansback until you earn £21K per year (if you started Uni on or after 1 September 2012). But unless you plan on not earning more than thatfor the rest of your working life, you WILL have to pay them back at some point. Sometimes, it can make sense to consider student loan refinancing in order to make your payments more affordable.

8. I know I need to pay off my debt but I don’t have any spare money.

Ok, but why not try to earn some extra income? There are so many things you could do to make some cash on the side!

9. I already work full time, I don’t have time to earn extra money to pay off debt.

Lots of people work full time, have families and still manage to earn extra money. You’re not the only person in that situation! More and more people choose to make money online or from home.

10. How else am I supposed to afford a holiday (like everyone else) unless Ispread the cost on credit?

Well, you could just not go on holiday until you can afford it. *shocked face*

11. Debt is normal nowadays, everyone has it!

Totally untrue. You might think this but the truth is that not everyone has debt and you can choose to live without debt if you want to.

12. I don’t worry about debt because life’s too short.You only live once, right?

What happens if you live into your 80s? Do you still want to be in debt then, when your health is deteriorating and you don’t have two brass buttons to rub together to make life easier?

13. I don’t want my kids to miss out so I spend my money on them rather than my debt.

Forget gifts, your kids need financial security. They’ll be better off if you’re better off.

14. The interest rate on my credit card is really low, so it’s fine.

But you’re stillthrowing away money onpaying interest – money that you could do with!

15. I know I’ll always have debt, so I just work around it.

Don’t accept that debt will always be a part of your life. It really doesn’t have to be and the world could be your oyster if you don’t havedebts to take care of.

16. I’m just going to shift my balances around on 0% credit cards until I have more money to pay off my debt.

What about those balance transfer fees? They usually range from 2% to 3% of your credit card balance, so transferring your cards continually will actually cost you money.

17. I can’t cut up my credit card in case I need it for an emergency.

You could try to save some cashfor an emergency fund, then you can cut up your credit card. You don’t have to close the account, but cutting up yourcard could be all you need to do to stop getting into more debt.

18. I can’t put my life on hold just to pay off my debt.

You might not have to put your life on hold, althoughyou will need to make some sacrifices to get out of debt. If not now though, you will have to in the future anyway.

19. I need to use my credit cards to keep my credit rating looking good.

Keeping lines of credit open is good for your credit rating, as is paying off balances in full at the end of every month. Spending on credit and taking ages to pay back your debt won’t have a better impact on your credit rating though. If you want to line the pockets of your creditors though by paying interest, that’s another matter!

20. The debts won’t matter when I’m gone.

To you they won’t. But if you have debt and family too, they might have to sort out your financial mess when you die. Believe it or not, your debts don’t just die with you.

My husband and I used to say and think these very things about our own debts. We were in debt for 15 long years before we finally saw the light and realised the damage that our debts were causing to us and potentially our young daughter in the future.

Life is so much better without debt!

What do you think about these statements? Do they resonate with you?

*Image courtesy of Flickr Creative Commons.

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20 Things People in Debt Say (That Will Keep Them in Debt) (2024)

FAQs

What is the most important thing a person should do to avoid debt? ›

To stay out of debt, make a repayment plan in your budget. Pay the balance in full each month. Only make charges when you can pay off the entire credit card balance when it is due. This will avoid interest charges and save you money.

What is the number one reason people are in debt? ›

Spending more than what you make sells your income to the future. Without a plan to catch up to the cost of the money you've already spent, your debt will accumulate more debt through interest. Living month-to-month also creates a situation where you have nothing to fall back on if money runs out.

What are positive things about debt? ›

Going into debt may be beneficial to your overall financial health in several types of scenarios, such as paying for an education, funding a business, or buying a home: Education: In general, the more education you have, the greater your earning potential.

What debt is most important to pay off? ›

Delinquent accounts.

If you have any debt that's highly overdue, it's best to start with that account. Delinquent accounts can have a substantial impact on your credit, just like accounts in collections, so those should be your first priority when paying off debt.

What is the root cause of debt? ›

What are the main causes of debt? A variety of issues can cause debt. Some causes may be the result of expensive life events, such as having children or moving to a new house, while others may stem from poor money management or failure to meet payments on time.

Who has the worst debt? ›

The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 121.31%. The United States' government's spending exceeds its income most years, and the US has not had a budget surplus since 2001.

What is the biggest problem with debt? ›

Rising debt reduces business investment and slows economic growth. It also increases expectations of higher rates of inflation and erosion of confidence in the U.S. dollar.

How does debt affect life? ›

There's a strong link between debt and poor mental health. People with debt are more likely to face common mental health issues, such as prolonged stress, depression, and anxiety. Debt can affect your physical well-being, too. This is especially true if the stigma of debt is keeping you from asking for help.

How to use debt wisely? ›

Bottom Line. You can enhance your financial position and create long-term wealth by leveraging debt to invest in appreciating assets such as real estate, consolidate high-interest debts to improve cash flow, use high-yield savings accounts or borrow to acquire profitable businesses.

Why is debt a bad thing? ›

Having too much debt can make it difficult to save and put additional strain on your budget. Consider the total costs before you borrow—and not just the monthly payment. It might sound strange, but not all debt is "bad." Certain types of debt can actually provide opportunities to improve your financial future.

What are the 5 C's of debt? ›

This review process is based on a review of five key factors that predict the probability of a borrower defaulting on his debt. Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral.

What is the 20 10 rule tell you about debt? ›

The 20/10 rule follows the logic that no more than 20% of your annual net income should be spent on consumer debt and no more than 10% of your monthly net income should be used to pay debt repayments.

What is the key to avoid bad debt? ›

Keeping debt balances low, paying all bills on time and limiting the amount of new credit you apply for are all key to building good credit.

What is the best way to overcome debt? ›

First, always pay at least the minimum required payments on your credit cards and loans. Then, allot extra money toward paying down more debt and saving according to your goals. A debt consolidation loan or a balance transfer credit card can also help lower overall interest payments.

How to legally avoid paying debts? ›

People who file for personal bankruptcy get a discharge — a court order that says they don't have to repay certain debts. Bankruptcy is generally considered your last option because of its long-term negative impact on your credit.

How can someone avoid being too much in debt? ›

To get out of debt, it can help to make a budget. A budget can help you change your spending habits so you spend less money, stop taking on more debt, and work on paying down the debt you already have. It can also help to think of ways to earn extra money each month.

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