Debt is one of the most stressful things when it comes to finances. What’s worse is that we’re led to believe a number of things about debt that simply aren’t true.
You may believe that everyone has some form of debt or that credit cards provide security. Let’s look at some of the lies about debt you believe.
Everyone Has Some Form of Debt
Everyone has some form of debt, right? Wrong. There are those that have worked and saved hard to buy everything they own, including their car and even their house. It may be hard to believe, but some people refuse to go into debt. The next time you make a purchase based on this lie, stop and think that there are those that work hard and save to buy things with cash.
Credit Cards Provide Security
This is one of the biggest lies we’ve been told. Credit cards allow us to handle things should an emergency occur. It might be a hole in the roof or even a trip to the ER. Whatever the case may be, credit cards shouldn’t be what you turn to. What you should do is build an emergency savings account that can be used solely for these situations.
You MUST Have a Good Credit Score
The credit card companies have led us to believe that a good credit score is the end all, be all when it comes to finances. The truth is that you can get through life without having a credit score. Sure, you may have to come out of pocket for things, but that allows you to avoid debt. For example, you may have a hard time getting a contract with a cell phone provider, without a large deposit, but you can always use a company like Straight Talk, which is usually cheaper.
I’ll Pay It Off When the Bills Comes
Oh, this is a lie that many people tell themselves time and time again. You spot something you really want, but don’t get paid until next week. No worries. You’ll just put it on your credit card and pay it when the bill comes. Yet, when the bill comes it’s so much easier just to pay the minimum. Don’t do this to yourself. Wait until payday.
I Need to Use My Credit Card to Get This Deal
It’s true that some stores offer perks to their credit card holders. It might be an extra 20% off or even a free item. But, ask yourself, is this deal really worth the amount of interest I’ll have to pay later? The same goes for interest-free periods. Will you pay the debt off before the promotion period ends? If not, you could be hit with a hefty fee.
There are so many lies we tell ourselves about debt. Some of these lies have been told so many times that people take them as fact. Stop and think about what you’re telling yourself. Chances are you’ll know what the truth is if you really think about it.