5 Excuses That Keep You Drowning in Debt

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You know you need to pay off your debt. You want to pay off your debt, but something is holding you back. Chances are you’re making excuses why you can’t pay your debt off, and until you realize it, you never will. Trust me. I’ve been there myself and am the queen of excuse-making. When it comes to how to pay off debt, the first step is to stop making excuses.

How to Pay Off Debt and Why You Don’t

1. You’re getting cash back – I love this excuse and I’ve used it myself.

Why not use a credit card if you can get rewards and cashback.

I mean, who doesn’t love free cash.

Of course, it isn’t free and unless you are paying your balance in full each and every month, then that 1 or 2% cashback isn’t doing you any good.

2. You don’t make enough money – This is an easy excuse to use. You compare your paycheck to the amount of money you have at the end of the month.

There’s not much leftover if any, so it is easy to assume you don’t make enough to pay off credit cards and your debts.

This is where you need to take a close look at your spending habits and bills.

Track them for a month or two writing down everything you spend.

Chances are you’ll find a few areas where you can spend less and use that money to pay off debt.

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3. My debt isn’t causing me trouble – While it might be true that you’re paying all your bills each month that doesn’t mean that your debt isn’t causing you trouble.

You just aren’t feeling it.

Just consider all the interest you are paying these companies, hundreds if not thousands of dollars each year.

If your debt was paid off, you could be putting that money into savings or retirement or even to improve your standard of living.

4. It’s too much, so why even try – I get it. When you are drowning in debt, it can be overwhelming and it is easy to think you’ll never get it paid off so why even try.

The truth is, however, if you make a plan on how to pay off debt and then just start, over time, you will find that it gets easier and easier and you will be making a larger dent in your debt than you ever thought possible.

5. I don’t have the time to deal with it – I know you’re busy, but it doesn’t take a lot of time to figure out how to pay off debt.

Sure, the first time you sit down to make a plan and figure out what you owe and how you want to pay it off, it might take you a couple of hours, but once that is out of the way, actually following the plan is quick and easy.

It shouldn’t take you more than an hour a month to review your plan and see how it is going and what progress you’re making and if there are any course corrections to be made.

One Way to Pay Off Debt

When we talk about debt there are several different kinds.

You may have a mortgage and a car loan.

It’s a good idea to get both of these paid off as quickly as possible, but the interest rates are typically much lower on these types of debts than revolving credit debits.

Revolving credit is credit cards.

Whether it is a VISA, an American Express card, or a store charge card, chances are the interest rate you are paying is quite high.

It is this type of debt that you want and need to pay off first.

While it might seem odd, one of the easiest ways to do so is with a personal loan.

The interest rates on personal loans are typically much lower than credit cards. You can also use one loan to pay off all of your credit cards.

That means you have one payment instead of several.

It is easier to pay off one loan making one payment a month than several higher interest rate cards.

Also, if you are paying the minimum payment, you will never get your credit cards paid off as you are mostly just paying the interest and a very small amount of the actual debt each month.

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