Why You’re in Debt and What You Can Do About It

Most Americans are in debt. Maybe you’re one of them.

Being in debt has gotten to be so normal that many people never question it. So many of us believe that debt is just a normal part of life and there is not much you can do about it.

In fact, some people even believe that having debt is a good thing.

Seriously, do you really need a ton of debt weighing you down to have everything you need in life?

No, you don’t.

In fact, I think it’s ridiculous to believe that debt is just a necessary part of life.

Being In Debt Drains You

Think about it. What does debt actually do to you financially? It unnecessarily drains away your hard earned money by making you pay much more for those things you buy with it.

When you’re in debt, you are paying money in interest and fees that could be used for things that are much more useful. Debt causes you to spend much more than you otherwise would on the things you want and need (read about how we overpaid for our car).

Ultimately, it sucks you dry financially while giving you a false sense of prosperity.

Being In Debt is a Choice, Not a Necessity

Most Americans, if given the choice, would probably tell you that it’s better to have no debt.

So why is it that the majority of Americans are swimming in debt?

Why are most people not making the choice that they know is best for them in the long run?

There are plenty of reasons why, a few of which I’ll cover here:

• Marketing. Every one of us is barraged with over 3,000 marketing messages every day, and that number is growing.  Most of those messages are trying to get you to spend money by turning wants into needs.
   
• Wanting to Fit In. You want what other people have in order to be like them or to fit in with a group. So you spend money you don’t have to be part of the crowd.
   
• Lack of Control. Some people just don’t know how to control themselves well. They don’t know how to say “no” when it comes to spending. So they spend on whatever they want, whenever they want it, which results in a lot of debt and the consequences that come along with it.
   
• Lack of Education. Some people think that having debt is just as normal as breathing. Some even think it’s good to have debt so they can maintain a good credit score or get tax breaks. Those numbers just don’t add up.

Here’s the deal: when you have debt, you are wasting hundreds, even thousands of dollars a year in interest and fees.

In the long run you are poorer because of it. You could use that wasted money for other things that create much more value in your life than helping to keep a finance company or credit card company in business.

Being In Debt Stresses You Out

When you have debt, you also have more stress and worry in your life.

You worry about making the payments. You need to make more money to meet your obligations. You’re having trouble saving for the future because your present debt is eating you alive.

Life is stressful enough without having to worry about debt and the emotional unrest it brings to your life.

If you can’t sleep at night and have that constant gnawing in the pit of your stomach because of stress, it’s very likely that at least some of that stress is being caused by debt if you sit down and take an honest look at your situation.

Don’t let debt rob you of your present, your future, or your peace of mind.

It’s just not worth it!

Debt Freedom Is Achievable

I’ve been out of debt (except for my house) for 7 years now. I can honestly tell you beyond a shadow of a doubt that debt freedom is achievable, and that life is exponentially better without that bondage tying you down.

Debt is called “bondage” for a reason.

I can help you do that same thing I’ve done to get out of debt and stay debt free for life.

It’s not an extraordinarily complicated process, but it does take time and dedication.

I can show you how to do it in my soon to be released “Celebrating Financial Freedom” online course. If you would like to keep tabs on the course’s progress and get a special deal when it becomes available, sign up here and I’ll keep you informed.

Has debt had any bad effects on your life? Did you recognize yourself in any of the bullet points above? Tell me about it by leaving a comment.

Article originally published on Celebrating Financial Freedom. Used with permission.

Dr. Jason Cabler is a Christian personal finance blogger, author, and speaker. He teaches how to get out of debt and live a debt free lifestyle through his Celebrating Financial Freedom blog and self study course. His book How to Budget: The Quick and Easy Guide to Making a Budget That Works is now available (more info here). He can be reached for interviews or speaking engagements by email, and can be found on Twitter, Facebook, and Google +.

Photo courtesy: ©Thinkstock/Stas_V