Ask someone why they haven’t gotten out of debt, and they’re likely to give you a deer in the headlights look. Or they might reply with “I can’t” or “I’ve tried, but it didn’t work”, and then go on to explain why.
Here are 7 surprising reasons people stay in debt:
1. Getting out of debt doesn’t occur to them.
In other words, they think debt is just a normal part of life. Many people grow up seeing debt used just as a matter of course. Their parents have car payments and put the Christmas gifts on credit, and don’t think anything of it. This is probably the easiest reason to overcome. Believing that you CAN be debt-free is a big step.
2. They think they don’t make enough money.
Many people are under the mistaken impression that they need to make a lot of money in order to get out of debt. While making more money can certainly help once you decide to get out of debt, the real key is to stop borrowing.
3. They don’t make it a priority.
They make other things, like going out to eat or getting a new car that they can’t afford a priority instead. They may want to get out of debt, but deep down they’re not willing to do what it takes. Or they’re gung-ho about it for a little while and then fall off the wagon, much like someone trying out an extreme diet.
4. They feel overwhelmed, hopeless, or afraid.
Debt can be overwhelming, especially if it’s due to medical bills or job loss. The pile of debt may look so insurmountable that it doesn’t even feel worth trying to overcome. They key to escaping this is to break things down into pieces that you can handle — maybe calling one creditor this month to try to workout a plan, opening up the bills, or sorting them into piles. Every little step is one step closer to getting out of debt.
5. They don’t think it’s possible.
This is very similar to the first reason. Some people just plain old can’t even visualize a life without debt. They’ll say “But what if I want to buy a house?” or “What if I need a new car?”. There ARE people who live life without using credit — including buying houses with cash. I know some of them, and I plan to be one of them.
6. They don’t know how.
Sometimes it’s just a matter of education. People aren’t born knowing how to manage money or get out of debt, so sometimes a little research is required. Just avoid those who promise a quick and easy way out of debt. It’s quick and easy to get INTO debt, not out. Those methods usually wind up setting you further behind.
7. Their spouse or significant other isn’t on the same page.
This can be a toughie, depending on how far apart the people are. They key is to try to come to a compromise both parties can live with by explaining why getting out of debt is important and being understanding about the other person’s point of view. Seek counseling if necessary.
I'm Jackie Beck, personal finance writer and creator of 
Number 7 is the tricky one. If one partner is working hard at getting rid of debt and the other is racking it up just as fast, it’s a no-win situation. It can definitely strain a relationship and is often what leads to the big D word.
Yeah that is by far the trickiest. On the plus side though, if when partners DO get on the same page, you can make a lot of progress quickly!
Great post! Number 1 is a big one unfortunately. It’s a “norm” for many to have a car payment, credit card debt, etc so people don’t think too much about it until it is too late :(.
I know I wish I had thought about it right from the very beginning. Oh well, live and learn right?
#2 is always the one that shocks me – I have friends who make two or three times what my husband and I do, yet they are deep in (unnecessary) debt. One friend recently asked me how I managed to pay off my car loans so early – I asked her why she needed to borrow money to buy a car at her income level!
Heh, I bet that didn’t go over well. I think a lot of people feel like only “rich” people can be out of debt though, which is sad.
We have definitely felt both overwhelmed and hopeless at times. Thankfully, Jefferson and I have never thought about giving up, but it is sometimes trying to think about how much work it will take to climb out of the mess, or how much time it will take. Our consumer debt-free goal is March. We started in late January of this year. 14 months is a LONG time, and the beginning was the hardest. We’ve just got to keep going and know that this will all be worth it if we do!
When we started to think about how much work or time it would take, we tried to refocus by thinking about how great it would be to be out of debt instead. That’s a lot more fun to think about anyway!
Your next step will be to work out your budget to see where your money is going each month and how you can make savings after paying your essential household bills to help clear your debts.