Often, we are deterred from doing positive things in our lives solely because we deny the presence of an issue. If you are unable to pay bills on time, overwhelmed by interest rates and may be skipping payments on your credit cards, you may be in debt and need to get out of debt. This is not the kind of debt you can easily spring back from, but debt that you can drown in- debilitating debt that might take you years to pay off. If this sounds like you, read on to explore the various debt related myths.
Myth #1: “I don’t Have Any Debt!”
Very often, denial of a problem is the first hurdle to getting out of debt. Any unpaid, outstanding, non-mortgage bills are considered debt and if you have any unpaid personal loans, credit cards or debt with family, you are in debt. In debt, you can often get stuck in a vicious cycle of paying one creditor off by using another and that can only drive you deeper into debt. If you want to start getting out of debt, acknowledge the problem and that you need help- it can be the first step to getting out of debt. The first step once you’ve acknowledged the problem is to make a detailed list of all your outstanding debt. In addition, also make a list of your income and your monthly expenses to determine how much money you can dedicate a month to paying off your debt.
Myth #2: “Budgets Can’t Help Me.”
Really? Really, budgets are the most valuable tool you can use to spend within your means and avoid additional debt. Reconsider using a detailed budget for your monthly expenses. There are several benefits to having a monthly budget:
- A budget forces you to detail all expenses, income and outstanding debt.
- Having a budget written down can help you see unnecessary expenses that you can cut down on. In addition, it can also help you determine what expenses are essential and those that aren’t.
- You can also help yourself by only using cash for your expenses- this can help you cut down on your expenses and avoid unnecessary expenses.
- Eventually, a budget can help you outline your expenses and find a way to pay down your debt.
Myth #3: “It is Impossible for Me to Pay down My Debt with My Income.”
Are you tightly strung, financially, between paychecks and find that you cannot pay off your debt, even if you tried? In fact, financially tight periods can be helped by living on a budget, cutting down on unnecessary expenses and getting together a plan to get out of debt. Even if you are able to make extra contributions to paying off your debt every month in addition to cutting down costs, you can be sure that you can effectively get out of debt. Also, consider getting another job- one and a half jobs or even two jobs can help you get out of debt even faster. There are tons of jobs available today that you can do from home- one of these jobs can supplement your income. Consider using the income from one job solely to pay off you outstanding debt.
Myth #4: “Professional Debt Consolidation Help Is Overrated.”
Actually, professional debt consolidation can really help getting you out of debt. Here’s why:
- While you can pay off your debt on your own, it is hard for a family or individual to stick to their plan 100% of the time. Debt professionals can monitor your progress and suggest changes to pay off your debt faster.
- Some debt professionals can help consolidate your multiple debts into one loan. This one loan allows you not only to be responsible for only one loan; it also allows you to pay a lower rate of interest than you were paying for multiple loans.
- Yet other debt professionals can talk to your creditors and help reduce the amount you owe them.
Professional debt help can help you to stay on target with your debt repayment plan and get out of debt faster than you thought possible.
Myth #5: “I Work So Hard…I Deserve To Spend On Myself.”
Yes, you do work hard and that is even more of a reason to get out of debt. It offers peace of mind that may be more valuable than material things. Also, there is nothing to say that you couldn’t have fun for less. Rather than a movie at a huge theatre, consider going to free movies at the park. Look for sales to buy your favorite things like clothes. Have a strict spending budget on your interests and only after you have made your monthly payments to pay off your debt.
The most popular debt repayment myths are really not myths at all…just misconceptions. With meticulous planning and some effort on your part you can get out of debt too.