Law Office of David A. Semanchik
Top 3 Reasons People Stay Trapped in Debt
The debt trap is real, and it has many Americans in its snare. More and more people are becoming victims to the consequences of instant gratification or the lack of an emergency fund. However, these aspects are avoidable for those with the determination to make their lives change for the better.
It’s not hard to understand what caused your massive amounts of debt, but it might be harder to see what’s keeping you stuck. Besides medical debt caused from accidents that have wiped out your savings, most of debt causes are avoidable. If you can overcome the habits that are keeping you under the weight of debt, you have a chance at living a financially free life. It starts with facing the sobering truth, taking responsibility of your decisions and committing to change.
Here are the three most common reasons people stay stuck in debt:
- Not educating yourself – Ignorance is bliss so long as it doesn’t devastate your finances, right? Well, there’s nothing like financial poverty to wake people up to the reality of their own ignorance. Thankfully, ignorance has a cure and it starts with research and using the tools available to create a budget and debt-reduction plan. Failing to become educated about personal finances will only hurt your present and future.
- Unwilling to sacrifice – Many people want to reap the rewards of hard-work without sacrificing anything to get to their goal. Eliminating your debt could mean sacrificing your free-time by taking a second job, sacrificing your privacy by moving in with a roommate or family member, etc. If you continue to live at the level that got you in debt in the first place, you’ll never get out of it.
- Addiction to instant gratification – An addiction to instant gratification keeps people pulling money out of their wallets to spend impulsively. Even the small purchases add up when you are under the influence of rapid spending. This includes eating out, buying things regular price, giving in to pushy salesmen, etc. You must put an end to instant gratification. It will be your constant downfall throughout life if you do not conquer it now.
Debt is a terrible trap to get into, and it starts with your perspective (mentality). You need to value your future and plan to save and spend money wisely. Never be a slave to your debt, conquer it by changing your habits and keeping your eye on the goal no matter what you must sacrifice to get there. Eventually, your finances will heal if you make the consistent changes necessary to make this happen.