Stigma About Debt

Let’s face it- there’s a huge stigma regarding debt. People are looked down on for having any type of debt. People will just say ‘Don’t spend more than you make. If you don’t have it in your bank account don’t use a credit card.’

But debt is more about using a credit card to buy frivolous things.

Debt includes student loan debt, dental debt, car payments etc.

I have mounds of student loan debt and while I have a decent paying job now it doesn’t make it any easier to pay off considering my monthly payment are pretty close to $1,000 a month. And we’re taking minimum payments here.

Dental debt- it’s a real thing. Between my husband and I, we’ve got like $4,000 in dental loan debt. How you might ask?

Being young and getting taken advantage of at a dentists office. We were outrageously charged for cavity filings, wisdom teeth removal and a root canal (which I’m still convinced they did the wrong tooth).

These are all things out of my control but I’m still looked down on because I have them.

Well, let’s stop looking down on people for this kind of thing and be a little more understanding.

Now, I’ve looked up hundreds of tips on best ways to pay off debt and mostly they are all the same and a lot of them are just silly but I’m going to share some tips that really stuck with me.

  1. Multiple debt forms: how to pay them off.

Now if you’re like me you probably we’re trying to put larger than minimum payments on all your debts. Don’t! This is a mistake.

For example, I’ve got three (not including my student loans). Two dental loans and a credit card. Now putting three larger than minimum payments on these and in a few months it feels like they haven’t moved at all.

New plan: Putting close to minimum payments on two and putting giant payments on one. Doing this I can get one dental loan paid off in a month and a half, then stop having that interest and can put that payment towards my other two. By my calculations instead of taking two years to pay off my debt I can pay it off in less than six months, and save myself a ton on interest.

2. If you’re one of those people whose tempted to use your card when you have it: LOCK IT UP AND THROW AWAY THE KEY.

Okay, not literally. You don’t want to cancel your credit card because that’ll hurt your credit more. But put it in a lock box where you won’t use it at all. You don’t need to put anymore on it, especially if you’re dying to pay it off.

3. Don’t put so much money on your cards that you end up being so broke before your next paycheck that you are forced to use your cards.

This is counter-productive and why a lot of people create budgets. Which I know we all hate but if you’re in debt, you need it.

There are a ton more tips out there but these are the ones that really stuck with me, and if someone can stick to them you could be debt free in just a few months.

If you are in debt, don’t wait thinking that eventually you will deal with that problem because it will only make your debt grow larger and larger. Get mad at it, and get determined to stop giving all your money to these loan companies.

Instead imagine yourself having extra money to go on a nice vacation and not having to worry about bills.

Good luck to everyone that has debt, and if you don’t I am so proud and happy for you. Keep it that way. 🙂

 

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