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.
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. 😀
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