To get debt free, think differently!
Debt is just a math problem, if you change the equation, you can change the result. To change the equation, you need to modify how you think about money. Take a look at these common beliefs that keep some people in debt.
1. Debt is normal. everyone has it!
This is total nonsense. The credit card companies want you to believe this because it’s profitable for them, but it’s totally untrue, the majority of North Americans do not have debt. They use their credit cards, collect their points, and fly around the word for free.
2. You only live once – YOLO.
Being a borrower keeps you a slave to the lender, the only way to create options in your life is to eliminate debt, and accumulate wealth. THAT is the true meaning of YOLO
3. I don’t want my kids to miss out, so I spend on them rather then paying it down
You are stealing from your families wealth when you carry a credit card balance and pay 19.99% interest every month. Children are resilient and need a lot less things then you think. They won’t melt into a puddle of goo if they don’t get the newest iPhone.
4. My 0% introductory interest rate is free, so things are okay.
Great, so what happens when the 6 month introductory period is over, and your hopes of paying down the balance disappear also? What’s your plan then Einstein? Shift it over to another 0% introductory offer?
5. I can’t put my life on hold to just pay off debt
Uhm, yes you can, life is full of sacrifices. Did you know ending a expensive Starbucks habit, and replacing it with home brew in a tumbler can save you almost $800 a year?
6. I needed to finance a new car, old ones break down all the time
No they don’t, if you buy a used car that’s about 5-7 years old it has most of it’s depreciation behind it, and are often still very reliable. .
7. All my friends are taking this holiday, I’ll just put in on credit.
Really? Are you going to walk off a cliff too if your friends do that? Here’s a novel idea, you could just not join them until you can pay for the vacation with cash.
8. I’m making my minimum payments, that will pay it off eventually
It can take decades, or even a lifetime of minimum payments. That’s exactly where the credit card companies want you, why do you think they have that little box with the minimum payment amount?
9. I use my credit cards and pay minimums to keep my credit rating good
News flash, if you have $20,000 of credit card debt, you have a liability. Carrying a balance does nothing to improve your credit, or add value to your life. Don’t believe me? Post and ad on Kijiji today and offer to sell your $20,000 of credit card debt. Let me know how many offers you get for it.
10. Everything will just work itself out
Things don’t just work themselves out, you need to change your behaviour to change your results. If you have debt, your belief system needs a reboot
We tell ourselves lies about our personal finances all the time, and those lies become reality for us. After 25 years in the credit and collection space, I’ve heard every excuse in the book. What do you think of these statements?
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