Top 10 Signs That Say You’ll Never Get Out of Debt

Updated: April 13, 2023

Having debts is a normal part of a person’s financial life. You are not alone – millions of people have debts. So there’s really no reason for you to pity yourself for having debts because as I said, it’s normal.

However, what is important for you to realize and remember is that not all debts are the same.

There are good types of debts. These are debts that help increase your value so you’ll end up with more cash in the end. Examples are student loans and business loans.

They’re good debts because the money you borrowed is used for something that will help you make more money in the future – through education and entrepreneurship, respectively.

And of course, there are bad and ugly debts. These are debts that make people poorer. You’re more familiar with this.

Credit card debts accumulated from buying luxuries you couldn’t really afford with your income is the most common type of ugly debt. And these types of debts, both the bad and the ugly, are something you should always try to avoid because getting out of them can be a bit tricky if you’re not financially smart.

Below now are what I consider the top 10 reasons why you’re never getting rid of your bad debts anytime soon – signs that say you’re actually trying to get out of debt the wrong way.

Take a look if you’re guilty of any of these and if so, try to change and improve.


Top 10 Signs That Say You’ll Never Get Out of Debt

1. You don’t know exactly how much debt you have.
How can you pay off your debts if you don’t know how much it is? But more than the amount, take time to know how much interest it is accumulating every month.

2. You’re still using your credit cards.
If you want to pay off your credit card debts, then STOP USING IT – it’s really common sense but I’m surprised to see a lot of people doing this mistake.

3. You’re still buying things you don’t need.
So what if all of your friends own a smartphone and you only have an ordinary mobile phone? You’re not less of a person if you don’t have the latest gadget and the trendiest clothes.

TIP: How To Avoid Impulse Buying

4. You spend time with people who are a bad influence.
When you tell your friends you can’t afford to go out this weekend, do they change their plans for you? Go ahead without you? Or offer to take you along for free?

Trick question? Not really, the point is if you’re embarrassed to tell your friends about your finances, then you shouldn’t really be friends with them. Find more savers and avoid impulse buyers and reckless spenders.

5. You waste too much time watching television shows.
Unless it’s part of your job, you shouldn’t watch too much television. It’s okay for a few minutes of rest and entertainment, but realize that there are more productive things you can do. The advice is the same for similar activities such as excessive playing video games.

6. You’re not paying yourself first.
I’m a big believer in saving money despite having debts you need to pay. For me, it’s hitting two birds with one stone – you’re taking care of your “mistakes in the past” while making sure that you don’t repeat the same mistake in the future.

MUST READ: Should You Save Money If You Have Debts?

7. You’re waiting to be saved.
Sure you can marry someone for their money, or wait for your parents or some relative to give you an inheritance. But when will that actually happen? 3 years from now? 5? 10? And when it does, do you think you’ll be happy?

Most people I know got out of debt within two years or less. Sure it’s hard work and entails a lot of personal sacrifices. But in the end, you’ll feel like you’re literally on top of the world and you can do anything. I’ve been there and it’s really an indescribable feeling of achievement!


8. You constantly blame others for your debts.
Sure, your parents/siblings/whoever would always ask for money from you for their needs. But that reality is not an excuse for you to not do anything. These people will not change, believe me, and it’s really all up to you if you want to get out of debt.

Stop complaining and don’t waste time blaming them for your financial woes. Remember that if you want to help others, you have to help yourself first – because you cannot give something that you do not have.

FURTHER READING: On Money, Friends and Family

9. You feel hopeless.
Don’t ever, ever believe there’s no hope for you to get out of debt. You may or may not believe in the Law of Attraction, but at the very least, believe in yourself.

10. You’re not subscribed to Ready To Be Rich.
Okay, the last one’s a shameless plug. But think about it, there are a lot of FREE resources out there that can help you become financially smarter. This blog is one of them, so take advantage of it and leverage on FREE education. πŸ˜€

Don’t know how to subscribe to Ready To Be Rich? Just enter your email below. It’s FREE, no spam and you can always unsubscribe later.

What to do next: Click here to start your financial journey with IMG Wealth Academy
Photo credits: Jay and Kamal


  1. @Rox
    That’s great! πŸ™‚

    Thanks, I’m glad this post has inspired you, and the post you wrote was awesome.

    Thank you… that was actually a last minute addition to the list. Hehe.

  2. Idol guilty ako sa number 10 hahaha after reading your entire blog for around 2 months ngayon lng ako ngsubscibe hehe keep it up bro

  3. Hi CT… okay lang na hindi ka naka-subscribe before. Mukha namang naka-bookmark na itong blog ko sa iyo – so parang ganun na rin.

    Anyway, I salute you for reading all my articles, that’s quite a lot! And thanks for subscribing. πŸ˜€

  4. Thanks for always sharing and educating, I just hope that many more can read your articles since many people of today have been victimized by their own greediness (me included in the past) spending using credit cards without realizing the consequences.

  5. I agree on number 1. People definitely have debt problems when they don’t know or refuse to know about their debt. I had this problem once and I remember that I didn’t want to be reminded to it and just tossed bills aside, not wanting to see them.

    Facing them was the best thing that happened to me.

  6. Hi Fitz!

    It’s been a long time! Glad I followed Step Number 10.
    Hahaha! It’s a great article by the way. Your articles are really helpful and very informative! Gonna share this one to my friend πŸ˜€

    – Paul

  7. Fitz,

    Tama ka nkabookmark at everytime nagbubukas ako ng pc check ko parati kng may bago kang articles…You are doing a good job and you have a talent in writing good quality articles..I am the one who needs to salute you bro…Its an honor to be reading your blogs =)

  8. Well said Fitz! A lot of people when they become hopeless about the size of their debt (no. 9), becomes parlayzed and the vicious cycle of debt continues. Your article pointed out the little gems of truth and has a lot of common sense, Thank you

  9. This is a great post, I could relate so much to it. In one way or another this stuff is also motivating. Keep it up πŸ™‚

  10. you’re such a blessing. thanks for sharing these things. your articles are very easy to read and understand. i am more interested to learn the ABCs of financial freedom / literacy thru your blog. More power! God bless!

  11. Thank you Sir Fitz, this is my first time to post comment here.
    I have already learned many things, and its all for FREE! I like also # 10. I never, and never will regret subscribing in your blogs. Thanks πŸ™‚ and God bless.

  12. So funny #10 :)) I’ve never been in debt and pray never to be in that situation. But I’m still trying my best to get financial education.

  13. Sir Fitz,

    Very informative article indeed. Im very thankful that i’ve found your website.

    Cheers! & More Power

  14. Hello sir Fitz,

    Im so thankful that I have found this blog.

    Admittedly, Im on debt right now and trying to free myself from it. Bad thing about it is though I may have a good paying job, I cannot fully enjoy it because almost all of my salary goes out paying my debts, that is over-and-above paying the house loan. I cannot wait to be debt free and start all over again, with utmost prudence and frugality (SO HELP ME GOD!).

    I strongly agree on those reasons.

    What helping me most about “breaking free” from all of my debts is basically acknowledging that I am in debt. When people are in denial of their dilemma they basically don’t mind about it and keep on doing things that could worsen it.

    Hopefully by the end of the year 2012 I will be Debt free so I can focus on investing (can’t wait!!!). I’ll continue reading your blog to learn about investing.

    Thank you and More power sir Fitz.


  15. Syet natamaan ako sa number 8. I blame my dad for having cancer, kaya nagka utang ako ng malaki til now. Hahahaha! πŸ˜€

  16. Let me share my experience that I’m suffering now a days to bloggers.Credit Cards Knocks in our door with 500k credit limit so i was shock all the sudden.For my thinking i can used this in good debt so. i invest in Taxi operation but sad to say i found myself in deep trouble now a days to survive my debt until i look for people to lean me to survive but still it goes down since borrowing money to person have big interest rather than the bank.No 9 and 10 are the best you can do on how to survive.

  17. I love the Number 10 πŸ™‚ Love you Fitz. Your the Best Pinoy Personal Finance Blogger for me.

  18. Sadly, think some folks can not be helped to change their ways no matter what. We tried to help a wonderful woman who worked for my wife as a YaYA for many years and also her large family before we were married. We set them up with two business opportunities and they stared off with a bang. Soon, the husband decided to try some hair-brain idea he cooked up but made NO plan to cover his spot on the business he had been handed. In a few weeks, when he went back to start again what we had given him, he found several others taking his place and his oppertunity was gone, no one would buy from him any longer. Others saw his success and were ready and happy to fill his spot. My wife’s former YaYa immediately started to buy cheap little trinkets when she began to earn. We said OK, one time treat yourself. After that, PLEASE, save for the down payment on a row house that you will own. Long story short, she completely wiped out and we are still collecting past due receipts from her failure. The family still lives in a horrid shack they do not own but have only “rights” with a sewage canal running directly under their living space. No electric power, no city water and the stench is overpowering. We really wanted much better for them but they still say what they have is good enough and that they don’t need “a real house.” This little story makes wife & I very sad but it is 100% true and we have yet to find any way to change it. BTW, this family is also often looking to borrow money that they can not repay, especially when there is a sick kid in the house.

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