Debt Myths That Stop You From Getting Out of Debt
Posted at 6:09 PM
5 Myths - You Won't Get Out of Debt If You Believe These
By Raymond Aaron
America's effort to get out of debt is crushing the economy. The recent collapses in financial institutions are a primary example of the American attitude towards debt that has America bailing out mega corporations left and right. The chances are that these myths seem obviously false to you, but you have some of these mythical behaviors ingrained in your subconscious.
Many things will help put a band-aid on your debt situation. However, you will never recover from the endless debt syndrome if you don't increase you level of awareness about the behavior that got you in debt in the first place.
Myth #1- Higher income will get you out of debt.
Nothing could be further from the truth. In fact, statistics say that the more money people make, the higher the amount of debt.
Myth #2 - Small debt is no biggie.
People who think that small debts don't make a difference usually have large debts. The secret to doubling your income is to stay out of debt.
Myth #3 - If the interest rate is low, then it's worth it.
Even if the loan has 0% interest, you're still increasing your debt. This sales gimmick often fools people. They don't look at the debt; they look at the interest rate. If you can't afford it, you still can't afford it with the interest rate lowered.
Myth #4 - The debt doesn't matter because inflation will bail me out.
Let's say you buy a house that's much bigger than you need. You know that in a few years, you'll make all the money back because the bigger house will be worth more. In the meantime, you struggle just to make payment. Remember these four words: First survive, second thrive.
Myth #5 - You are entitled to this.
Many people will totally disregard the debt or expense because they feel a sense of entitlement. It's okay to get in debt because you deserve it, right?
Now, which one of these myths do you believe? Chances are that you'll say none in self-defense. Nevertheless, your behavior might indicate that you act as if you believe some of these myths.
You can try a variety of methods to get out of debt, but first you need to change your attitude and realize that no debt is the only way to go. If you are in debt, you can try a few things to get out of debt.
If you decide to go with a credit repair company, check to see if they're listed with the NFCC (National Federation of Credit Counselors). Never go with a credit repair company that charges hundreds of dollars upfront. It should only cost about $50 to get a consultation.
You can get out of debt on your own. Call your creditors and tell them the situation as shortly as possible because they've already heard everything. Tell them you can no longer afford to pay and would like it modified. You may get your rate lowered.
If they aren't meeting your expectations, calmly thank them by name and ask for the supervisor.
Get on the right track to get out of debt and never go back in debt again.
Raymond Aaron,
New York Times Top Ten Bestselling Author, "Double Your Income Doing What You Love"
Claim your Gift From Raymond to double your income. It's free.
By Raymond Aaron
America's effort to get out of debt is crushing the economy. The recent collapses in financial institutions are a primary example of the American attitude towards debt that has America bailing out mega corporations left and right. The chances are that these myths seem obviously false to you, but you have some of these mythical behaviors ingrained in your subconscious.
Many things will help put a band-aid on your debt situation. However, you will never recover from the endless debt syndrome if you don't increase you level of awareness about the behavior that got you in debt in the first place.
Myth #1- Higher income will get you out of debt.
Nothing could be further from the truth. In fact, statistics say that the more money people make, the higher the amount of debt.
Myth #2 - Small debt is no biggie.
People who think that small debts don't make a difference usually have large debts. The secret to doubling your income is to stay out of debt.
Myth #3 - If the interest rate is low, then it's worth it.
Even if the loan has 0% interest, you're still increasing your debt. This sales gimmick often fools people. They don't look at the debt; they look at the interest rate. If you can't afford it, you still can't afford it with the interest rate lowered.
Myth #4 - The debt doesn't matter because inflation will bail me out.
Let's say you buy a house that's much bigger than you need. You know that in a few years, you'll make all the money back because the bigger house will be worth more. In the meantime, you struggle just to make payment. Remember these four words: First survive, second thrive.
Myth #5 - You are entitled to this.
Many people will totally disregard the debt or expense because they feel a sense of entitlement. It's okay to get in debt because you deserve it, right?
Now, which one of these myths do you believe? Chances are that you'll say none in self-defense. Nevertheless, your behavior might indicate that you act as if you believe some of these myths.
You can try a variety of methods to get out of debt, but first you need to change your attitude and realize that no debt is the only way to go. If you are in debt, you can try a few things to get out of debt.
If you decide to go with a credit repair company, check to see if they're listed with the NFCC (National Federation of Credit Counselors). Never go with a credit repair company that charges hundreds of dollars upfront. It should only cost about $50 to get a consultation.
You can get out of debt on your own. Call your creditors and tell them the situation as shortly as possible because they've already heard everything. Tell them you can no longer afford to pay and would like it modified. You may get your rate lowered.
If they aren't meeting your expectations, calmly thank them by name and ask for the supervisor.
Get on the right track to get out of debt and never go back in debt again.
Raymond Aaron,
New York Times Top Ten Bestselling Author, "Double Your Income Doing What You Love"
Claim your Gift From Raymond to double your income. It's free.
Labels: credit, debt, debt myths, double your income, interest
