Be sure not to believe these common debt myths:
It’s not really debt
- Your debt doesn’t define you, but the numbers don’t lie. If you have consumer loans and you’re paying interest at high, or even toxic rates, you have an issue that needs immediate attention. You’re a busy person, and it’s all too easy to stretch out payments over the years and pay more interest than is necessary.
I’ll pay it off later
- It’s tempting to view debt as something that will be easier to deal with later – when you have more time, when you earn more, and so on. But you already know how expenses can catch you by surprise, and it’s best to keep debt at a minimum in case life throws you another curveball. Plus, sometimes wage increases are slower than we’d like.
Everyone has some debt, this is normal
- It’s true, a lot of people have debt, but their debt doesn’t affect your financial future. Your debt does. When it comes to finances, you shouldn’t look at other people’s habits to justify your own. Instead focus on you.
The points are worth it
- Points and other awards are great, but you have to consider the costs. If you are buying things that you don’t necessarily need and/ or paying high interest rates to do it, the awards will never make for what you’re paying in interest. You’ll be much better off saving money for the things you really want.
How to really live a debt free life
Life happens, and borrowing can help when money is tight. But if loan balances and monthly payments make you feel uneasy, there are several other solutions. Don’t underestimate the sense of relief that comes from making a plan and putting it into action. By making your way out of debt, you can put money toward more meaningful goals, spend less on interest, and enjoy more choices in life. Learn how Figure can help.