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I was talking to a friend of mine last night and somehow we started talking about why people don't get out of debt.

I must admit because my mindset is so focused on staying debt free and helping other people become debt free I've been missing the reason why most people can't get out of debt...

First he stated that he wanted to get out of debt by making more money. That's a solution to getting out of debt but it really doesn't work that way when people try to put it into action. Why? Because for most the more money you make the more you spend.

Just look at your situation right now. You're probably making more money than you made 3 or 5 years ago and you probably have more debt.

So the solution to that would be to learn how to handle the money you have and you'll learn to handle more money that you will have later.

Also a persons MIND cannot assess the future of having more money, you might think of having more money but you're action will work with what you have now.

Another good question / statement he made was...It's easy to get out of debt, all I have to do is spend less than I make - simple math!!! LOL

I replied...yes but its more than just the numbers its about your current behaviors. If it was all about the numbers everyone would spend within their means but look at our government and citizens. The majority are overspending...LOL :)

Getting out of debt can be simple if you understand how to do it the right way. You don't need a lot of money you need a simple solution and action towards your goal.

I agree with you completely. If people can manage their finances well, then they can become debt free with ease.

Sub: #1 posted on Tue, 08/02/2011 - 23:28

Good Nelly Good Nelly
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It is called learning to live within your means and not using credit for things you cannot to afford to pay cash for. My income is way way down since moving to florida and I have had to adjust. I live on coupons and sales. All clothing is from thrift stores. Basic frills. We rarely eat out and when we do it is with a coupon. Pack my lunch and beverages for work and no take out coffees/lattes anymore. I carry no cash and use my debit card for everything....I can see exactly what I am spending. I would prefer not to live so frugal but even when my income goes up, I will still follow most of this discipline.

Sub: #2 posted on Wed, 08/03/2011 - 08:34

Moderators Cum Industry Expert
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Having a good spending management is good. However this is just my take on my side.
I have 3 children 7-4-1. My wife is having tough time looking for a job that will cover day care and some. So right now Im the only provider so sometime even having the right money management it is still tough to get going.

Sub: #3 posted on Fri, 06/01/2012 - 09:23

tommyhtruong tommyhtruong

(Posts: 21 | Credits: )

It is so true. If you really want to get out of debt you need to manage your money well. I say set a reasonable financial goal as far as making more money but set up a budget for what you would spend as you make that increased income. If you don't, you will never get ahead.

Of course, the hugest challenge is if you don't even make enough to live on and you have expenses outstanding that increased income would have to cover. Still, a budget as you increase your income is better than no budget.

Knowing what your maximum necessary living expense budget is will also help you know how much more mone you need to make to have more disposable income.

Sub: #4 posted on Tue, 08/07/2012 - 12:23

mydebtrelease mydebtrelease

(Posts: 24 | Credits: )

It's all about handling your finances in the right way. No matter how much you earn, if you spend money recklessly and opt for incessant use of credit cards, it's pretty obvious for one to fall into serious debt problems. Thus, one needs to make a proper plan and spend accordingly.

Sub: #5 posted on Mon, 10/29/2012 - 22:26

paula16marshall paula16marshall

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