There is a difference between healthy and unhealthy debt. Some ways you can tell your debt is leaning towards the unhealthy side are:
- Feeling stressed out over your debt
- Having difficulty making your debt repayments
- Your debt balance consistently increases, but does not decrease
- Your debt is negatively affecting your budget
- You consistently only pay the minimum fees
If any of these situations sound familiar it may be time to take a closer look at your relationship and how you can improve. To get you started here’s 8 excuses that are keeping you in debt.
I’ll pay for it later on.
If you’re making purchases based on plans to pay them off when you start making more money or get the bonus you’re hoping for, or when you have extra cash left over in your budget – you’re setting yourself up to potentially be paying on the purchase for a while and possibly at high interest rates.
I deserve to splurge on myself.
Treating yourself is absolutely important, and you do deserve this; however, if your splurges are causing you to take on more debt, perhaps you should splurge a little less. When you spend on non-necessities it should always remain within budget.
My debt isn’t that high.
It’s normal, and even healthy in some situations, to have debt; but, if you think it’s ok to continue spending on credit because you don’t feel your debt is too high, that can be a problem. Your debt, no matter the balance, should not be something that continues to increase based on a notion that it’s not too high. This type of thinking can lead to your debt getting out of hand sooner than later. Find out how to eliminate your credit card debt here.
I need this because they have it.
Keeping up with the Jones’s is a dangerous game to play, especially if you’re doing so on credit. Someone else is always going to have a nicer car or the bigger house, and many times those people have a ton of debt as a result. Don’t continue to raise your debt based on a desire to impress everyone – it’s not worth it.
I should spend now because it’s on sale.
Don’t feel pressured to spend outside of your budget and rack up debt simply because something is on sale. Chances are, it’s not the last time you’ll see a sale on the purchase in question and it’s most likely not worth the extra finance charges you’ll pay for buying it now on credit.
Everyone has student debt.
Yes, student debt in this country is tremendous, but if you accept it as your “normal” than you’ll never be out from under it. While your student debt was necessary to fund your education, it should stick around for as little time as possible. Come up with a budget that emphasizes paying off your student debt as quickly as possible, then once you’ve paid it off you can breathe a little easier and work on funding your next financial goal.
My debt isn’t a priority.
So often borrowers will get into the habit of continuously spending on credit and then just paying the minimums due each month. The problem is that the debt amount keeps increasing, the minimum payment amounts continue to grow, and pretty soon you may find yourself unable to afford even the minimum monthly payment amounts. When you don’t prioritize paying your debts they can continue to grow into something much harder to handle and get out from under. If you spend on credit, be sure you can afford to pay off the amount spent within a reasonable amount of time as well.