Gulf Winds Federal Credit Union Blog

3 Reasons You Don’t Pay Your Debts – And Why You Have No Excuse

We get it—it’s not easy to escape from debt.

Life is unpredictable. Unexpected costs come up and throw a wrench into the financial equation. We hear plenty of reasons why people have trouble paying their debts here in Florida, but we’re here to tell you that no matter the problem, there’s a solution—if you know where to look.

 

1. You have no money

One reason you may not pay off your debts is because, of course, you have no extra income to spare. Credit card and student loan payments often get neglected in favor of more pressing bills, such as food, gas, or the mortgage.

However, a lack of income is no excuse these days. Many credit unions and banks offer debt consolidation programs and financial management to help debtors reclaim control over their situation.

 

2. Interest is frustrating

Another reason you may get frustrated with debt is interest. High interest rates mean you’ll be paying back more than you borrowed, and if you aren’t careful about how payments are structured, you’ll end up paying down the accrued interest rather than the principal balance. Understandably, this can be disheartening when you’re just scraping by each month.

To get around this, speak with your loan provider to ensure the payments you’re making pay off the balance rather than the accrued interest.

 

3. Social pressure

While both a lack of income and maddening interest are common reasons that people neglect their debts, they aren’t actually the biggest. The most pressing concern that stops people from paying their debts is the social pressure that money management entails.

Nobody wants to be “in debt.” Nobody wants to be the friend who can’t go out because he’s watching his wallet. Unfortunately, the reality is that debt management means changing the way you live your life and giving up many of the luxuries that you may have, until now, taken for granted.

Cutting corners and making sacrifices is hard, but it’s necessary if you want to achieve financial security as you get older.

 

 

 

 

 

 

 

Photo Credit: bigstockphoto.com user tashatuvango

 

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