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 Common Misconceptions Keeping People in Debt

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Every human behavior can be traced back to beliefs. If you believe you can do something, you are more likely to try it and keep going until you see success. Conversely, if you believe you cannot do something, you’re unlikely to even try.  

This is why these common misconceptions keeping people in debt are so powerful. They go right to the core of the belief system.  

Let’s take a look at some of them. 

I’m Too Old to Change Anything Now

OK, so you haven’t been saving for retirement and it’s right around the corner. Despite what you might believe, anything you do is better than nothing. Pay off your debts if you don’t do anything else to prepare for retirement. That will at least ensure whatever money you do have coming in will go toward sustaining you rather than your creditors. 

Debt Doesn’t Matter, I Make a Lot of Money 

That sizable salary might give you a feeling of security, but companies go under each and every day — often without people realizing their positions are in jeopardy. Further, you could contract a debilitating illness or suffer a catastrophic injury. This is why it’s critically important to eradicate debt, establish an emergency fund and make as many of your purchases as possible with cash. That way, you’ll have money set aside to tide you over if things go awry. And, you won’t have to burn through your savings trying to keep your credit card bills current. 

Something Will Happen — It Always Does

While it’s true lucky breaks and windfalls do occur, the best luck is the luck you make for yourself. If you’re going through life leaving your destiny to fate, you could well find yourself eternally mired in debt, with no hope of reaching your financial goals — assuming you have them. What’s more, debt, like a wildfire, becomes uncontrollable when left unchecked. Too many people have found themselves in the middle of a forest, surrounded by flames, owing to that attitude. If it’s already happened to you and you’ve been waiting for “something” to happen, you’re in luck. 

Keep reading — it’s about to happen.

You need to seek professional credit card debt relief.

Budgets Are a Waste of Time

Everything you see around you is the result of a plan. That device you’re holding in your hand with which you’re reading this was planned meticulously before it was put into production. Your home was planned. Your car was planned. If you’re married, your wedding was planned too — remember? 

You’ll need to plan your spending if you’re going to eliminate debt from your life. The problem most people encounter is they budget too strictly and wind up breaking it because they can’t stand living within the bounds they’ve created. 

This is why it’s important to include “fun” money in your spending plan too. 

I’m Young, I Have Lots of Time to Deal with it

The song “Time,” one of the tracks on Pink Floyd’s Dark Side of the Moon album, contains the lyric: “You are young, life is long and there is time to kill today. Then one day you find ten years have got behind you. No one told you when to run — you missed the starting gun.” 

There is no such thing as plenty of time. It’s the most finite resource we have. The sooner you make use of it toward the accomplishment of a goal, the better the quality of your life will be. 

This is particularly true when it comes to investing because of the power of compound interest. However, your ability to invest is curtailed if you’re using all of your money to pay bills. 

These five common misconceptions are keeping you in debt — so work on pushing back against them as soon as possible.

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