Excuses Why People Stay in Debt
The sad statistics is that majority of the population is in debt, 80% in fact. What is even more sad is the fact that debt is considered normal and completely acceptable because everybody has debt, 8 out of 10 people. So why worry about it, right?
Well, you should indeed worry about being in debt. The fact that most of the society wants to live in debt and have no financial security, doesn’t mean you have to live like this. Debt will forever keep you in a cycle that makes it impossible to build wealth. Debt keeps you living paycheck to paycheck for the rest of your life.
But people in debt sometimes can’t see that debt is not an only option. They’re so caught up with being in debt that they can’t see a way out.
Living in debt is a choice, and unfortunately people don’t realize it is a choice not their inevitability.
Because debt is so normalized in our society, they don’t even know that you don’t have to choose debt. You can choose to be debt free, as well as you can choose to be in debt.
There are all sorts of reasons people choose to live in a cycle of debt instead of taking steps to become debt-free. I wrote down 3 excuses why people stay in debt.
1. Not willing to make changes
If you are in debt, then something must change. You must give something up in order to become debt free and live a better life in the future.
The reason why you are in debt in the first place is because you have spent more than you have earned. We all know that you shouldn’t spend more than you earn, yet very few of us follow this very basic money principle. Therefore, you have to cut something out. But nobody likes downgrading, it is uncomfortable. But guess what, you have been very comfortable getting into debt, and spending all the money you don’t actually have. So now is the time to get uncomfortable and get yourself out of debt.
I believe one of the main reasons people choose to stay in debt and live over their means is because they want to keep up with the society, with people around them. You want to demonstrate that you have your shit together, you went to a nice college, you had an expensive wedding, you have an expensive house and car, beautiful clothes etc. However, living this sort of lifestyle where appearances are more important than your financial stability only gets you further and further into debt. And the people you are comparing yourself with are drowning in debt, it is all this fake lifestyle that everybody are trying to keep up with. But for what? To have car loans, mortgages, credit cards bills?
However, if you start working towards becoming debt free and building your financial security, then in 20 years time, you won’t have a financial worry in the world while everyone else will working until they die.
2. Not willing to wait when they have the money
If you don’t have the money for something you desire, then borrow it. If you can afford the minimum payments then you are good to go.
Yes, this is how most people’s thought process goes when considering whether they should be taking a loan or not.
That is not how it should go, if you don’t have the money then you should simply not buy at this point in your life. You will spend way more on the payments than you would have if you have paid cash. Simple as that.
If you cannot afford then you simply cannot afford it. Take the time and save money.
3. Not following a budget
If you don’t have a budget, then you don’t know where is your money going. Which means that you can very easily overspend and get into debt. You need to know exactly how much you can spend, as otherwise you are just guessing. And you can’t guess with numbers, you need a clear plan. Budgeting means that you tell your money where to go, including paying off debt.
Without having a budgeting how can you know how much you can pay towards your debt? If you don’t know then you are most likely not going to do it either, so take the time and get your personal finances in order, by creating a clear plan for your money. Then you know exactly how much you can pay towards your debt and how long it take you to become debt free. The more you are willing to sacrifice the faster you will reach your goal. But this is different from person to person and it really depends on your situation. So take your unique situation into account and make your own calculations that suit your life.
Staying in debt is a choice, choice most people have made. They choose to live in debt, because getting out of debt is too much work, and yes, it is. It is not easy, you will have to make some changes to your life in order to budget for paying off debt. It takes a lot of work. Changing your lifestyle is pretty uncomfortable and it takes time. Sadly people are not willing to work for it, if it is too much work or it takes too long then it is not worth it.
There is no magic way to get out of debt, besides determination and consistency. Getting out of debt is uncomfortable and it is a long road, but the end result is 100% worth it. Make it a priority, and you won’t be sorry.