couple in debt
Tips & Guide

Why So Many People Fail at Becoming Debt Free

I’m surrounded by folks who either have or are working to become debt free. I understand that this is the norm in my little world, yet practically everyone knows someone who has tried, failed, and given up on becoming debt-free. So, what distinguishes people who achieve debt-free status from those who do not?  And how can you be sure that you’re one of the ones who will achieve your goal of becoming debt free or wealthy?

Many people fell into the debt trap due to inappropriate consumer behavior. Reason enough for consumers to arm themselves and defuse possible debt traps in advance. Consider these reasons for failure, and then make sure you don’t fall into these sabotaging traps:

1. Lack of Education Doesn’t Help You Get Debt Free

So many people decide that they want to be debt free, or wealthy, without having any idea of what they’re doing.  It sounds pretty simple, in theory: you pay off your debt, and then you save/invest money, right?  However, without the proper education, you’re setting yourself up for failure before you even get off the ground.

Just like you wouldn’t drive a car without first learning about the rules of the road and of the vehicle, it’s important not to jump onto your road to becoming debt free without learning how to navigate it.  Like any goal, the road to being debt free is full of potholes and roadblocks.

A good personal finance education will help you to be aware of what to expect on your journey, and will help you know how to navigate around those bumps in the road.  Make the smart choice to read about what successful people have done to make it to debt freedom before going on that road yourself.

Read also: 7 Financial Lessons That My Parent’s Debt Taught Me

2.  Lack of a Plan

If you’re planning on heading on a cross-country trip for the first time without your GPS or map, you’re likely heading for trouble.  Surveys have proven that successful goals are SMART (Specific, Measurable, Attainable, Realistic, Timely) goals.  If you’re jumping on your path to debt freedom without specific short, medium and long-term SMART goals, you run the risk of giving up due to a feeling of being lost in the woods.

No matter how minute they may seem, make a plan with goals that work for you and your specific situation before you start your debt payoff journey.  Your first short-term goal may be as simple as “Make a budget and stick to it” but that small goal is a very crucial part of achieving long-term success.

3.  Lack of Understanding

Another reason that so many people fail at their goal to become debt free is because they don’t understand the magnitude of their debt.  People with a large debt load often fail to see that trouble could easily be lurking just around the corner.  One job loss, one large medical bill or home repair bill, could quickly change their situation from paycheck-to-paycheck into “we’re losing the house.”

It’s vitally important if you’re contemplating a journey out of debt that you understand why it’s so very important that you rid yourself of the debt.  Sit down and take a good, long look at your current debt situation, fully grasp the magnitude of the dangers of living with a large amount of debt, and gain the understanding you need that will keep you on track with the goals you’ve set.

4.  Lack of Vision

This is likely one of the most important parts of a successful journey to living debt free.  Whereas a good understanding of your debt will motivate you through fear, a good vision of your life without debt will motivate you through excitement.  First on the list to obtaining vision in this area is to write down what you will do when you are debt free.

How will your life change?  Will you be able to leave a job you hate?  Provide a better education for your children?  Travel around the globe?  Once you get a vision of your debt free life, use it to be the deciding factor in all spending decisions.  When you’re faced with that potential latte’ order, use your vision to decide what’s more important to you:  that short-term “yum” factor, or the long-term “traveling” goal.

Read also: 6 Easy Things to Cut When Paying Off Debt

You’ll likely quickly decide that being able to retire at 55 instead of 65 is well worth giving up the latte’, provided you’ve done a good job of establishing your long-term vision of the good life in your head.

By following the above guidelines and making a plan today (or at least the beginnings of one) you can make sure that you’re one of the ones who succeed at your goal of becoming debt free!


Why You Should Be Debt Free?

Being trapped in a debt trap binds up your money, preventing you from doing whatever you want with it. However, it has far-reaching consequences that go beyond money. The persistent weight of debt can harm your career, health, and relationships over time. Freeing yourself from debt can improve your life in a variety of ways.

Credit is an easy way to deceive your mind into spending more money than you truly need. Furthermore, it will do so instinctively and automatically. In order for you to have a better understanding. Consider the cost of a new television at $1000. It may appear to be a large sum of money, but things change when it is converted into $50 per month, with no interest! This is one of the things they don’t teach you about debt, and it’s also one of the most dangerous aspects of it.
Interest does not have to be paid on every debt.

It’s easier to save when you don’t have any debt! While it may be difficult to become debt-free right away, simply decreasing your credit card or vehicle loan interest rates might help you start saving. Those savings could be put into a savings account or used to help you pay off debt faster. You can develop an emergency fund, plan an enjoyable trip, and even save for retirement with more money.


Sadie is a freelance writer documenting the adventures of downsizing from the family home in the suburbs to a mountain cottage in the woods. She share the downsizing details, scoutings of the mountain locations, and her never-ending search for the perfect T-shaped clothesline.

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