They Try to Keep Up With the Joneses
When many people see others with something, they feel like they should have it too. This is a phenomenon that is known as keeping up with the Joneses. However, it is not a good idea to buy something just because you see someone else with it. You never know another person's financial situation. They may have an income that is large enough to support their lavish lifestyle. They may also be in debt up to their eyeballs.
It is easy to fall into the comparison trap nowadays because of social media. Everyone is trying to outdo the next person. That is why many people are willing to go into debt just so that they can have what everyone else has.
They do Not Have Any Additional Income
If you are always spending more than what you make, then you will never get out of debt. It is a good idea to get an additional source of income if you cannot support yourself on your current income. If you pick up freelance work or a part-time job, then you can bring in hundreds of extra dollars per month.
They are Not Willing to Make Sacrifices
If you want to get out of debt, then you will have to make sacrifices. These sacrifices may be painful. For example, you may have to go without cable. You may also have to stop eating out. Because these sacrifices are painful, many people are unwilling to make them. They would rather stay in debt than go without the things that they love.
They Keep a Balance on Their Credit Card
Credit card debt is one of the worst types of debt that you can have. Credit cards have high interest rates. If you are just paying the minimum payment, then you can possibly be in debt for the next 20 years because of the interest rate. It is a good idea to avoid carrying a balance each month. If you charge everything on your credit card and do not pay it off every month, then you will keep digging yourself deeper into the financial hole.
They do Not Make it a Priority
Many people say that they are going to get out of debt. However, they do not make it a priority. They say that they will get out of debt the next month. When the next month comes, they put it off until the following month. It is impossible to get out of debt if you do not make it a priority.
They Make too Many Little Purchases
Most people are well aware of the fact that big purchases can ruin their budget. However, they do not seem to pay much attention to the small purchases that they make. Those small purchases that you make every day can keep you in debt. Here is an example of how a seemingly small purchase can add up over time.
You buy $3 coffee every day. You charge this purchase to your credit card every day. If you do not pay this off, then you could end up with $1,095 in credit card debt.
They Have a Spouse That is Not on the Same Page
Many people are committed to getting out of debt, but they have a spouse who is not on the same page. When you are married, you can no longer think of the money that you have is your money. You share it with your spouse. If you want to get out of debt, then you will have to get your spouse on the same page.