Why Getting Into Credit Card Debt Is So Easy (And So Hard To Get Out Of)

The average person with credit card debt in the US owes $15,779. Why is that?

No one wants to be in debt. But the world we live in is strongly focused on “things,” and you can’t buy things without money. Feeling compelled to compete with friends and neighbours for most expensive lifestyle is hard to avoid, and loans are easy to get. (Ever wonder where the phrase “Keeping up with the Joneses came from?) From cars and homes to holidays and electronics, we’re constantly being pushed to buy, buy, buy.

And most of the time, what we want — or think we need — is outside our means. We do need to buy necessities to survive, but when you go into credit card debt, you’re jeopardizing your future Financial Freedom!

Keeping up with the Joneses

Peer pressure is one of the biggest motivators for not Living Within Your Means. As a doctor, I expected to work hard, earn a great living and have my finances magically work out.

In reality, I saw my colleagues pushed to the limits financially as they felt the pressure to send their kids to expensive private schools, take long holidays every year and give their peers the impression they were well off. They were working more so they could spend more — not so they could reach Financial Freedom.

“Everyone” is in credit card debt

Funding your life by going into credit card debt has the unfortunate side effect of making debt seem normal. And that makes going into even more debt that much easier! If everyone is in debt, why shouldn’t you?

The temptation to go into debt to buy what you can’t afford is all around us, but debt is NOT a given. You can make the choice to avoid debt, Live Within Your Means and make Financial Freedom your goal. I’m here to help, but you have to put in the effort to change your relationship with money.

When you start Paying Yourself First and Living Within Your Means, you’ll reach Financial Fitness very quickly. And when you reach Financial Freedom, you’ll have what everyone actually wants. You’ll have the Freedom to stop exchanging your time for money and to make choices about how you WANT to live your life.

And when you have true Financial Freedom, you won’t need to keep up with the Joneses, you’ll be their role model!

image credit: Bigstock/monkeybusinessimages

Dr. Tony is the co-founder of MindShift.money and the best-selling author of three books on personal and business finances. Having achieved Financial Freedom at 27, Dr. Tony believes that through Financially Fit Bootcamp and Cash Flow Cure everyone can get there. He has made it his life’s mission to help others live a life where their money works for them—not the other way around.

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