Being in debt is not comfortable, and it never will be. You can’t escape the thoughts of when will you pay back the money that you borrowed? And how will you manage to do so? Being the generation that owes the most in history doesn’t help, does it? Well, you should know that there is a light in all this darkness. You can pay your debt back if you change both your thinking and behavior. But first, you need to know what is stopping you from being debt-free. Let’s find out the reasons why people can’t get out of debt.

1.  People choose the wrong loans

The decision to borrow money from a bank or other financial institution is hard to make and can be very tricky. I mean the offers of different types of loans are endless. So you might think that short-term loan with not so obvious high lending rate is attractive. Then it turns out the installments are so expensive you can’t afford them. The biggest mistake people make is that they don’t do enough research about the terms of loans before they decide to take out one. If you need to borrow money, choose more secure options, like installment loans, and reduce the risk of staying in debt forever.


2.  They think they don’t earn enough

Can you ever have enough money? It seems impossible, right? The list of your expenses doesn’t have an end and paying the money back is most likely not top of the list. Don’t worry. You are not alone. Lots of people act the same when it comes to money. They forget about budgets and spent more than they have. It’s not the salary that’s the problem. It’s people’s behavior. Budgeting is the only way to go if you want to get rid of debt. To fight back debt, you can also be brave and ask for a raise if you think you deserve it or find an additional freelance job and help your finances.


3.  Keeping up with the rest of society

Also known as new stuff addiction. People buy all the time. Not only do they purchase like crazy, but they also feel like they need more and more things to stay relevant. Nowadays, you have to have certain things to maintain your status. Well, this is just an illusion that you created in your head. Having a lot of valuable things and a massive debt with it, doesn’t make you more important or loved. Get this out of your head, or you will never stop buying unnecessary things that are keeping you in debt.


4.  They do not budget

I can’t stop telling you how important budgeting is. People don’t seem to think it is essential. You know more or less how much you spend, right? The truth is you have no idea how much money you give away, and that is why you are still in debt. You need to know exactly how much you can spend each month and stick with it. Otherwise, you will choose a path of staying in debt forever. Calculate your basic spendings like rent, bills and food and add some money that you can spend for fun to the list as well. But be reasonable and stick to your plan.


5.  No teamwork, no hope

Two in one reason, because both hopelessness and lack of support from loved ones are connected. People that owe a lot of money simply don’t believe it is possible to pay back the debt. They have no hope and see no possible positive outcome out of the situation they are in. The reason for being hopeless is usually a feeling of loneliness, only you and the amount of money you owe. People have good intentions, but they feel like there is no way out of debt. Having no hope is dangerous because you stop doing anything that may help you end your misery. What’s even worse is that you don’t share your fears and worries with loved ones. So instead of working together towards a debt-free future, all you do is keep drowning in financial problems. You need to acknowledge that to pay the money back, you need mental support and to be on the same page with your partner.

You know now the reasons why people can’t get out of debt, and you know what to change. Make paying back your debt a priority and take control of your finances. People are making decisions to get out of debt every day, so can you. Have your life back by becoming a debt-free person. And always remember, you are not alone in this fight.