Healthy and unhealthy debts are two different things entirely. Some of the ways you can be aware that your debt is leaning towards the unhealthy direction when:
- Feeling stressed out over your debt
- Having difficulty making your debt repayments
- Your debt balance consistently increases, but does not decrease
- Your debt is negatively affecting your budget
- You consistently only pay the minimum fees
If any of these situations sound familiar it may be time to take a closer look at your relationship and how you can improve. To get you started here’s 8 excuses that are keeping you in debt.
I’ll pay for it later on
You will be setting yourself up to potentially be paying on the purchase for a while and possibly at high interest rates if you are making purchases based on plans to pay them off when you start making money or get the bonus you are hoping for, or when you have extra cash left over in your budget.
I deserve to splurge on myself
No doubt, it is good and important to splurge on yourself; but you splurging on yourself should not be at the expense of taking more debt. If this is so, splurge a little less. Your spending on non-necessities should never in anyway exceed your budget.
My debt is not that high
It’s normal and even healthy in some situations, to have debt; but, if you think it’s ok to continue spending on credit because you don’t feel your debt is too high, that can be a problem. Your debt, no matter the balance, should not be something that continues to increase based on a notion that it’s not too high. This type of thinking can lead to your debt getting out of hand sooner than later. Find out how to eliminate your credit card debt here.
I need this because they have it
Avoid the game of keeping up with the Jones especially if it comes under your credit. In life, there would always be people having something nicer than you have like cars, house and many times those people have a ton of debt as a result. You should not get yourself in to debt because you want to impress people; it is not worth the stress.
I should spend now because it is on sale.
Do not be carried away by the pressure to spend outside your budget and end up in debt just because a sale is out. Truth be told; that might not be the last time the item would be on sale and it is most likely not worth the extra cash charges you will pay for buying it now on credit.
Everyone has student debt
Yes, student debt in this country is tremendous, but if you accept it as your “normal” than you’ll never be out from under it. While your student debt was necessary to fund your education, it should stick around for as little time as possible. Come up with a budget that emphasizes paying off your student debt as quickly as possible, and then once you’ve paid it off you can breathe a little easier and work on funding your next financial goal.
My debt is not a priority
What many people do is to continue to spend on credit with the hope of paying their minimum dues monthly. This does not always work out well because as time goes on, the debt amount keeps increasing simultaneously with the minimum payment on a monthly basis and pretty soon one might not be able to keep up with the monthly payment which leads to more debt. You debt would continue to grow in to something harder to take care of and which you might not be able to handle if you don’t prioritize paying your debt.
If you are interested in eliminating your debt quickly and getting a fresh financial start help is out there. You can begin by determining which debt to pay off first here.