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Tag Archives: getting out of debt

How I Got Into Debt

There was a time when I thought it was normal to be in debt. As I finished school and entered the work force, I believed it was normal to sign up for the debt club with a new mortgage, new car, and all the trappings of the lifestyle people told me I needed. Eventually, debt lost it’s glitter, and it took control of my life. I’m here to tell you how smart people get into debt by spending too much, believing in good debt, getting approved for too much credit, and thinking that making payments means you can afford it. Later this week, I’ll tell you how to stop the cycle because debt does not have to be forever. How I Got Into Debt People only get into debt one way, by spending more than they earn. My initiation into the debt club came on my first day of optometry school when I picked up my first ever student loan check to pay tuition. Since my income was zero and I’d just spent $10,000, I got immediate silver status! Fast forward four years, and I graduated with a really nice diploma, a residency position that paid $25,000 a year, and ...

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Mistakes That Keep People in Debt

why people stay in debt

I have certainly made my share of financial mistakes from running up credit card debt to spending student loan money on an iguana, but I think after all those mistakes, I’ve finally learned how to stay out of debt. However, I see people every day who are still struggling with the same money problems we used to. There are some key mistakes that can sneak upon anyone trying to beat the cycle of debt. Taking Out Loans After Paying Off Large Amounts of Debt We knew another family that were going through some of the issues we were during our massive credit card debt payoff. We used to all hang out and play musical credit cards, charging whatever and whenever we liked. Jim and I had our wake up call after seeing family really struggle after losing a house to foreclosure. Our friends lost a job during the great recession. The husband worked in a sales job while the wife stayed home with the kids. Since they had no emergency fund, things got pretty tight. Eventually, they made some tough decisions, which included selling a really nice house that was keeping them house poor. They moved into a small rental. ...

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