5 Destructive Myths About Debt Finally Shattered
Getting out of debt is not an easy feat. It can sometimes take years, and a lot of sweat and tears. However, many times we prolong the process by misconceptions we hold as truth in our minds.
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Today I want to share five commonly held myths about debt that may delay or stump any debt pay off endeavor. As a personal confession, I’ve believed all these myself. I know how destructive believing these lies can be so that’s why today I will be debunking myths about debt that have held me back so you can watch out for them!
Myth # 1: Debt Is A Normal Part Of Life
Debt should not be a normal part of life.
However, if you’ve grown up in the past several decades, you may have come to this conclusion just by seeing so many people around you in debt.
It’s true.
Most people have had some kind of debt at some point in their life.
However, that doesn’t mean that you should just give into thinking that you must have debt and that that’s just the way things are.
You don’t have to accept debt as a normal part of life!
This myth about debt is very dangerous because if you don’t recognize something as a problem, you will never take any steps to fix it.
Myth # 2: I’m Going To Be In Debt Forever
When we’re staring a mountain of debt in the face, it could be truly discouraging. It could feel and seem as if that mountain is just un-conquerable. However, that couldn’t be farther from the truth.
Are you going to become debt-free overnight? Probably not. However, it’s important to remember that being in debt is just a season of your life.
You may need help along the way, and that’s ok. Perhaps that help can be a personal loan, debt settlement, or even debt consolidation. No matter what kind of help you take to become debt free, the work you put in towards paying off your debt will be well worth it in the end.
Debt doesn’t have to define you. Soon enough, with hard work and determination, you’ll pay off all your debt.
That day, you’ll look back at this moment and smile a little. Maybe even feel a little silly for even thinking that you wouldn’t be able to get out of debt.
You. Got. This.
No matter how difficult it seems, or how far away your goal looks. Don’t let dread intimidate you. Keep moving forward in the right direction!
Myth # 3: If I Talk About My Debt, I’ll Be Judged
A very damaging myth held by many is that they’ll be judged if they talk about their debt. I certainly fell into this trap for many years. I just pretended everything was ok when it really wasn’t.
Secrecy, in any struggle in life, keeps you in bondage to the problem.
When you finally talk to someone, it may even feel as if a physical weight has been lifted off your shoulders.
Some people are bound to judge you. But if that happens, just take it in stride and find a more supportive friend or family member.
If that’s not available to you, then find a supportive online community that will encourage you without judgement.
Related Posts:
3 Reasons Why You’re Still in Debt (& How to Fix it)
4 Crucial Mindsets to Become Debt Free
Debt Snowball Method: Does It Really Work?
Myth # 4: I Don’t Have What It Takes To Get Out Of Debt
Getting out of debt is hard (understatement of the year).
Many people don’t even attempt it. If you’ve believed this self-defeating thought, replace it with positive self-talk.
I truly believe that our words have power. If you tell yourself (even in your mind) day in and day out that you’re not gonna make it, you probably won’t.
Recognize that you have the power to change your narrative, which in turn has the power to change your whole life.
This is one of the premises of one of my favorite personal finance books, Think and Grow Rich. In this book, the author encourages us to use the power of self-suggestion to spark belief in ourselves.
This may sound like a late night infomercial, but if I can get out of debt, you can do it too! When I started paying off my debt, I was a single mom surviving on one income.
Was it hard? Of course it was.
Did it take long? It felt like forever.
Did I ever get discouraged? All the time.
However, I kept going. Even when I didn’t see any significant change. Even when I felt down. Eventually, I started getting momentum, and I didn’t stop until all my debt was gone!
If you want a more in-depth look at how I paid off over $50K of debt on one income, check out my free eBook here!
Myth # 5: What’s Done is Done
Another very destructive myth when it comes to debt is that the past has to define your future. This is what I call a “what’s done is done” mentality.
The truth is that this very moment is the BEST time to make a change in your finances. Get the right tools, start to use them, and begin to see the difference.
I recommend the Personal Finance Planner to start tracking your debt and spending habits.
I incurred some of my debt due to my own irresponsible choices. But most of my debt originated from medical complications and other reasons outside of my control.
In cases like these, it’s easy to give into this type of mentality and just succumb to the feelings of unfairness or guilt. So in case you missed it, I’d like to say it again:
Your past does not have to define your future.
Have you been irresponsible with money in the past? It’s never too late to change. Have you incurred debt because of someone else’s actions?
I know that feels terrible, but as long as you don’t start letting go, it’s likely that you won’t take ownership of the situation.
Whatever your past looks like, realize that each day is a new opportunity to create a new beginning and a new outlook for your life, financially and otherwise!
Frequently Asked Questions
That’s it for the common myths about debt that we tend to believe!
Before we close off the subject though, let’s address some commonly asked questions about debt.
Is It Common To Be In Debt?
As I mentioned before, being in debt is quite common, so if this is your situation, you’re not alone.
In fact, a recent study shows that the average American carries roughly $38,000 in personal debt, not including their mortgage. Most people have been or will be in debt at some point in their lives. Thankfully, that doesn’t mean that remaining in debt has to be a life sentence.
Is It Better To Be Debt Free Or Have Savings?
Many people cite the desire to save money as a hindrance to paying off debt. However, if this is your belief, I’d like to challenge you to consider how much more you could save if you didn’t have to pay interest on your debt each month.
The truth is, as long as you have debt, saving money will be much more difficult.
What Types Of Debt Should Be Avoided?
In my opinion, every type of debt should be avoided. However, that’s not always feasible nor practical.
Try to avoid high interest debt. Especially debt that is tied to a depreciating asset.
Avoiding this kind of debt is important because it’s the kind of debt that more often than not gets you into trouble.
High interest debt can bind you in a never-ending loop of paying mostly interest. Ensuring that you don’t make enough progress towards paying off the principal.
Debt tied to a depreciating asset provides little recourse should anything go wrong.
Is It Possible To Live Without Debt?
Yes! It’s possible to live without debt. Becoming debt free, and staying that way, is no easy feat. But it is absolutely doable!
What goes into a life without debt?
Planning, determination, and commitment. Those are three key ingredients to live without debt.
From my own personal experience, and from countless others I know, I can tell you that it is possible to live without debt.
Final Thoughts
When it comes to paying off debt, these five common misconceptions may delay your progress and keep your hands tied.
So take some time and analyze your belief system. Are you believing any of these destructive myths about debt?
I know I’ve definitely believed each one of these self-destructive thoughts at one point or another.
How about you? Did you feel identified by any of these myths about debt?
