Getting out of debt can be a struggle! It can sometimes seem like you’re not making any progress, or like it’s too big of an effort to even start. This blog post is going to dive into why you’re not getting out of debt, and how to fix it.
If you’ve been looking for why you’ve been in a cycle of staying in debt instead of getting out of it, you’re in luck. I’ve personally been through the wringer trying to get out of debt. I went from living with family, not being able to make minimum payments on bills, and not even having a functional vehicle to now being out of debt, building wealth, and literally loving life. If I can do it, you can too.
This is all about why you’re not getting out of debt, and how to fix your lifestyle and mindset to actually change it.
You don’t care enough
What? Ouch. Yes, I know this sounds harsh but it’s true. If you’re not getting out of debt, then you probably aren’t caring enough to get out of debt. It’s difficult to confider that maybe it’s you who is in your own way. What’s harder is implementing new lifestyle changes.
Do you care enough to actually push yourself and get out of your comfort zone? Just like anything you do in life, if you haven’t flexed those specific muscles before, it’s going to feel very foreign and uncomfortable.
So how do you fix not caring?
CARE MORE! It’s normal to be feeling overwhelmed or not focused. If getting out of debt isn’t a priority, you’ll have to make it one. Investing in yourself means that you care. Getting out of debt means that you care as well. Don’t give up on yourself, and don’t feel like this is out of reach. It’s absolutely in reach – you just have to put in the effort… and CARE.
You don’t have a budget
A budget is the most important thing that you can have, and making one can be really difficult. There are some guidelines for how much you should spend on various things. Trying to get out of debt without a budget is like trying to drive across the country without directions.
If you don’t have a budget, you’re literally just letting money rule you. Take control back; rule your money and direct it where it should go – not the other way around.
So how do you fix not having a budget?
DUH! Make a budget
I’ll be touching on how to make a budget at a later date but the one way you can change being in debt is to do this. If you care about getting out of debt, making a budget is going get you exactly what you need to change your life for the better. Starting with a budget will make this a ton easier – it will give you the direction that you need. Trust me.
You’re not sticking to a budget
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Maybe you made a budget, which is great, but you’re not sticking to it! What good is working out a budget if you’re not going to actually stick to it? Getting out of debt requires you to stick to your budget, which can be really hard!
The reason it’s hard to stick to a budget is because you’re actually putting yourself in the driver’s seat in terms of control. And sometimes controlling things is difficult, especially when you’re not used to it.
How do you change not sticking to a budget?
You guessed it, stick to the budget. But it’s a little bit more complicated than just sticking to a budget and moving on. It entails adding up all of your expenses and determining if you’re close in every single category.
It’s not enough to just look at your incoming versus outgoing. You need to go in and really care about what you’re spending items on versus what you’ve budget for those items. Every penny matters.
Your budget is unrealistic
How many times can we talk about budget? Well, getting out of debt REQUIRES you to have a budget, so yeah… it’s going to be talked about a few times in this post. Let’s say you have a budget, but that budget is so far off what you actually spend…?
It means that you’re not going to be getting out of debt any time soon. Making your budget too strict isn’t helping you get out of debt; it might actually be hurting.
Let’s say you budget your base rent for your living expenses, but don’t factor in utilities, internet, etc. Or maybe you budget in your cheapest month for utilities, but you don’t factor in the months that you need to use more energy in order for you to be comfortable. Any expense that you’re off on can make you go backwards way more than anticipated.
So how do you make a realistic budget?
Take a look at your expenses that you HAVE to pay. Don’t base this off of memory. Actually go into your bank statements, categorize each expense for the month, and add them up. This will give you a good baseline, and will also tell you where you can cut costs as well.
You’re not cutting expenses
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Changing your spending habits is tough and can be uncomfortable. Let’s say you have 3 subscriptions to streaming networks. You know that, in all, you’re spending $45 a month on just streaming networks alone. Cutting it down to 1 streaming network can save you up to $40 a month! That’s $480 a year!!
Small changes like that can pay dividends in the long run.
How do you decide what expenses to cut?
Look at everything you spend money on with a critical eye. No stone goes unturned when you’re doing this. Here are some really good ideas for cutting your expenses that are doable (I promise they’re doable because I’ve done these):
- Cut your streaming services
- Use less energy for your utilities
- Get rid of your car payment! If you owe a lot, sell your car and get a car that fits your budget better
- Stop eating out and start cooking for yourself
- Stop splurging on clothes or guilty pleasures
You’re comparing yourself
I’ve seen this one a lot. A ton of people feel like they need to keep up with the Jones’ and it’s literally making them broke. Their shell of a castle is just that – a shell. Wouldn’t it be better to actually be wealthy than to have crazy payments because you’re embarrassingly broke?
How do you stop comparing yourself?
It takes a lot to do this. This is actually a lot easier said than done for some folks. You have to be extremely introspective and determine what actually matters to you. Is being seen by others that you’re wealthy important to you?
Does it matter that you have the newest toys or the best labels inside your shirt? Or does generational wealth matter more to you?
Do you care if you can pay cash for things? Or do you feel like being slave to payments is ok?
I can’t answer these questions for you, but I can tell you that if you care enough and if you want it enough, what other people think of you will be of no concern to you.
You don’t want it
This is similar to you don’t care, but it goes deeper. Not wanting to get out of debt means that you don’t even want to change. Not caring enough means that you actually care some – that you’re actually trying. Maybe it’s a good idea or concept, but putting it into action is just too much to handle.
If you don’t want it, then don’t do it. But don’t expect any incredible changes to happen if you don’t want it. Maybe you’re here because you’re considering it. Maybe you just need a final push. I hope that my experiences can help you.
There’s not much I can say for not wanting it. A lot of folks are in denial about their situation. Many people just don’t want to think about it. If you’re here just to get your feet wet with a concept of a different way of living, then I hope this helps you and continues to help you on your journey.
It’s too overwhelming
You know how there are two responses – fight or flight? Well, there’s a third response and sometimes it’s freeze. You might know that something needs to change, but you’re not sure where to start. It’s natural to freeze if you’re too overwhelmed to start something.
If you’re afraid, that’s okay too.
So how to do you get over getting out of debt being too overwhelming?
The most important thing you can do for yourself if this is why you’re not getting out of debt is to just be easy on yourself. Sometimes looking at the big picture makes you forget the small steps it takes to actually get out of debt. YES! It’s cyclical and can be tiresome.
How do you eat an elephant? One bite at a time.
The elephant is your proverbial debt, and it’s quite the mountain. Try taking smaller steps instead of seeing how big the mountain is. One step at a time will get you there eventually.
You keep having setbacks
Setbacks are absolutely normal. You can’t help what happens to you, you can only help how you react to it. It’s incredibly important that you keep your determination. Setbacks are totally fine, it’s how you respond to those setbacks that really impacts your bottom line.
How do you prevent setbacks?
YOU DON’T. Again, you can’t control what happens to you. What you can control is your determination to get back on the horse and keep going. When you’re looking back at how far you’ve come, you’ll be extremely proud of yourself and have an inspiring story to tell. It’s hard to keep that in mind when you’re in the thick of it, but just don’t give up!
You don’t have support
We are pack animals! Support is so incredibly important in order to actually be able to do well. If you’ve reached out to people and they have been critical of your new way of life, it’s hard to stay on track. Nay-sayers can really bring you down.
How do you navigate not having support?
It’d be easy for me to say get rid of those people who aren’t giving you support, but it can be a lot more complicated than that. Maybe they’re your family or your best friend, or they’re someone you look up to and you can’t just cut them out of your life.
If getting out of debt is something that you really want for yourself or your family, then finding support will be important. Maybe that means joining a meetup or a facebook group regarding getting out of debt. Finding a group of people who understand you is literally priceless! Do the work; invest in yourself and spend the time finding your people.
You don’t know where to start
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Starting can be the hardest part! What’s the most important? Where do you start? How do you know what the best path is for you?
Start with getting your goals down on paper. Writing your goals down will help you with figuring out what you want to do so that you can determine what you NEED to do to get to your wants. Just take some steps back and write out your dreams. Things will flow from there.
Conclusion
These are the top reasons you’re not getting out of debt and how to fix it. I hope you found some value in figuring out your sticking points and ways to help unstick yourself!
Love it! In my experience, you can’t control setbacks but you can keep a tiny emergency fund. Which will help you get in the habit of not relying on a credit card.
You’re absolutely right, MaryLetitia! That tiny emergency fund can help out in so many ways and so can not relying on credit cards. Thanks for stopping by!