Helping You Avoid Life's Financial Mistakes

The REAL Reason You Can’t Get Out Of Debt

October 8, 2008 By 1 Comment

The Real Reason

If you have been in debt for some time you will understand what I am about to discuss.  If you have been trying to build up your emergency fund you will understand what I am talking about. If you are trying to achieve financial independence then you will understand what I am about to relay to you.

In this article I am going to hopefully point out some reasons why you may not be out of debt or achieved much of anything else.  Giving you the REAL reason you can’t get out of debt.  My outcome in this post is to show you that it’s not any one thing that is stopping you for getting debt free…

It’s YOU!

Let me explain.

In life there is a certain area where you feel comfortable at.  For example there are certain financial debts you are comfortable with say your mortgage, car loan, and credit cards.  Certain amounts of income you are comfortable with and use to, and in general certain ways you just like to do things. 

That certainty is what may be holding you back from going on to the next level in your life.  Wether it’s your debt or anything else you are trying to achieve.

Your Comfort Zone 

Your comfort zone is the area where you feel certain the most.  When you step out of your comfort zone you start to feel uncomfortable.  Maybe your late on a payment or taking on a new debt say buying a new car.

You know what I’m talking about.  You’ve had those butterflies in your stomach.  If you have a story about stepping out of your comfort zone I would love to hear it in the comments.

When I started my first business I had those butterflys in my stomach as well, but there is one very important quote that I will never forget.

You must step out of you comfort zone in order to achieve success.

Think about that once.  Anything you have ever want to achieve that took some sort of effort such as getting debt free or being a financial success you had to get uncomfortable in order get there. 

For example when I start this blog I had to step out of my comfort zone.  A million thoughts raced through my head such as what will people think, how will this work, or can I actually do this.  I’m sure you’ve been there.

Why you aren’t moving to the next level?

Think about it this way.  If you were a thermometer and you were always comfortable at say 80 degrees and this is where you see yourself the most comfortable.  Then all of a sudden something happens and life has given you 50 degrees.  Your boss is getting on you at work, your debt is piling up, you missed a payment on your mortgage.  Things seem uncomfortable.  Then several weeks pass and things seem to get better.

Have you ever wondered why this happens?

It’s because your identity is to stay consistent with the way you see yourself.  If you are at 50 degrees and you’re comfortable at 80 degrees a subconscious alarm goes off in your head telling you that you need to correct this.

However the same it true the other way.  If life has given you 95 degrees and  you got a promotion at work, you paid off your credit cards, your emergency fund is fully funded you will subconsciously bring yourself back down to 80 degrees.  You’ll let things slip and fall apart.  You won’t even know you are doing it to yourself. 

Ever done this before.  I know I have on many of occasion’s.  If you got a good story to share here leave a comment.

How can you stop this cycle?

Stopping this cycle is not going to be easy to do but you can do it. 

  • Don’t ignore the situation.  Telling yourself that you don’t do that will only take you longer to climb out of that hole you may be in.  Recognize your situation and look for a solution.
  • Get a mentor.  This is my best advice to you.  They can help you from seeing 80 degrees all the time to helping you crank up the heat a bit and putting you at 105 degrees. 
  • Educate yourself.   Education is the reason why we have more consumers in debt than ever.  Start reading some books, listen to some inspirational speakers, sign up to the Stumble Forward RSS.  The education is worth it.

Are you facing some of these situations?  Feel free to tell us your story and leave a comment.

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How to Keep a Debt Free Mindset

August 28, 2008 By 2 Comments

Getting debt free is a tough challenge.  There are many obstacles to overcome.  Such as deciding how to pay off your debt, which debt you should pay off first, or for the least part staying focused.

 

But there is one challenge that you will face.

 

Can you handle the negative pressure that paying off your debt consists of?  Keeping negative pressures off of you while you are trying to get debt free is hard simply because debt is in itself is a negative word. 

 

Think about it.

 

What is the first thing you think about when I say the word “debt?”

 

I bet they aren’t happy thoughts for the least part.  Debt in itself is a negative term. 

 

So how do you hold off these negative feelings and get past it?

 

1.  You need to except that you are in debt and that you need to solve this problem before it gets any worse.  I have seen times where people literally believe that they can’t become debt free so they create more debt by getting more credit cards. 

 

You may think that isn’t any new advice but how many of us actually like to say we are in debt.  Much less admit we need help.  Some people can be very open about it but for the most part any client I have ever talked to never liked to mention it.

 

 2.  Stay away from anyone or anything negative.  If you are a negative person by nature then go on a negative free diet.

 

If you have issues with debt collection agencies calling you don’t talk to them.  Turn of your answering machine or cell phone.  These calls will only drag you down more.

 

Also stay away from anything written that is negative.  This could be an article in the paper or magazine, something on the radio, something on television, or even the statements and other trash you may get in the mail.  You can keep the statements but don’t spend a lot of time reading them.  A lot of times I find that just reading the statement can be an emotional energy drainer. 

 

This will be hard to implement just because most things generally are geared to a negative aspect.  With all the negative trash out there these days this will definitely be a test of your will. 

 

3.  Put an achievment poster together.  This is a simple picture which will show you all the exiting benefits you will receive once you are debt free.  This can be done on a big poster board all the way down to a simple sheet of paper. 

 

The idea is to put a list of things you will do once you are debt free.  If you want to go one step further type them out and then put pictures with each thing you will do once you are debt free. 

 

For example if your goal when you become financially debt free is to go on a nice vacation to Aruba.  Then find pictures of what it would be like once you achieved this.  Such as a picture of a couple sitting on the beach watching the sunset.  Then post it on your refrigerator or in a familiar place so that you will see it everyday.  This way it reminds you of what you will achieve once you get there.

 

4.   Have fun!  Being in debt doesn’t mean that you can’t have fun.  It just means you can’t spend money like you got holes in your pockets. 

 

They’re lots of things you and your family can do to have fun while trying to hold down extra spending.  You can go to the beach, invite a few friends over, or take a walk.  Those are a few things my family and I have done.

 

Get creative!  Make it fun. 

 

Last but not least.

 

Don’t wait to implement these ideas.  Start now.  Don’t just let this be another article you read, do it now.  I find somewhere between reading and doing most people get lost.  Maybe that’s why so many people just can’t get out of debt. 

Filed Under: Debt Managment Tagged With: , ,