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Why People Stay in Debt

I remember the moment I decided to get out of debt. I could not keep up with my expenses and I always felt like I could not get ahead. I was borrowing to pay back a never-ending mountain of debt.

As I reflected on my journey toward financial freedom, I thought about what keeps others from getting out of debt. Why would someone want to stay in debt instead of living financially free? I generated this list below to help identify some of those reasons. You may find that you are on this list, but you don’t have to be anymore.

1. Not enough money

This was probably the number one reason I couldn’t get out of debt. I thought I needed to make more money to pay off the large amounts of debt. But, it was not my income, it was my behavior. I was trying to spend more money than I was making. Once I created a working budget and stuck to it, I began to see that I had enough money to start paying off debt.

Creating a budget will empower you to see where your money is going every month and where you can cut back. Simply making a budget and being intentional with your money will make you feel like you got a raise!

Also, remember that income can play a major role in why people stay in debt. Adopting healthy financial behaviors contributed to me paying off debt. Once I increased my income, I was able to pay off debt faster. If you want to attack your debt, I would recommend doing things to bring in extra cash! Get a part-time job on nights or weekends and sell things you don’t use because everything has some value for someone. Or, maybe it’s time to get bold enough to ask for a raise or put your resume out there and start looking for a higher paying job.