5 Common Misconceptions About Debt Free Living

One of the biggest myths about modern living is that a life without debt is a life free of cares. Many people believe that credit, bank loans and debits are nothing but a trap set by large financiers just waiting for you to fall into, then spend your life paying them back and never getting anywhere. This is not true, and below are five major reasons why debt free living is not all it’s cracked up to be.

BELIEVE

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1)      I’ll Always Have Enough Money

The biggest misconception about debt free living is that without overheads, you’ll always have enough money. This is a myth. With inflation rising steadily and wages failing to catch up it can often be a struggle simply to afford the things you need, never mind the things you actually want.

Whilst debt free living can reduce your overheads, simply surviving on a wage that won’t allow you any sort of financial freedom can leave you feeling even more exhausted than the freedom that short term loans may offer.

2)      I’ll Never Have to Make Big Financial Decisions

With or without debt, you’ll always have to make big financial decisions at many points throughout your life. It’s thinking like that which can land people in hot water in the first place.

Whether you have credit cards or a short-term loan, it’s important to budget every step of the way. With a short term loan however, the stress of budgeting may be eased greatly as you have something to fall back on when you suddenly find yourself drastically over budget.

3)      I’ll Never Have Another Money Row

Money rows occur through bad planning and bad managing of personal finances, not debt. If you’re careless with your credit card or short term loan, then yes, of course, it will cause tension in your personal life.

But on the other hand, if your finances are unable to cover your overheads without a loan or credit card, then this may contribute to extreme levels of stress and tension in your life and relationship. A short term loan, if needed, may be the easiest way to ensure everything runs smoothly until you are in a position to overcome your obstacles.

4)      I Won’t Have To Worry About My Credit Score

If you suddenly decide to take a big step in life and are serious about getting a mortgage, buying a car or setting up your own business, then not having any sort of previous credit score will do you a lot of harm. Previous borrowers who have kept up regular repayments on loans and credit cards will find they are offered a much better deal when it comes to approaching financiers and banks for a life-changing amount of money.

Even if you have every intention and ability to repay your loan, those who have borrowed previously will be offered a much more generous amount and better interest rate which will cost a lot less in the long term.

5)      My Life Will Be Completely Stress Free

This is a myth. It’s not just finances that contribute to stress in life. Most of the time they are just the icing on the cake. Remember, depression and anxiety due to financial struggles are a symptom, not a cause, and one that can be easily combated with a short term loan.

This post was inspired from payday loans company Wonga, in the UK.

Article written by

A passionate finance blogger who just loves sharing her knowledge with you!

3 Responses

  1. Great post, thank you. Totally agree with you, most people believe that debt free life is a miracle. You know, I do not see anything bad in responsible borrowing. It’s life and it’s impossible to predict everything that may happen to you, sometimes most of us need to borrow money. I believe that people can borrow money in a right way and avoid financial mistakes. My mom is an example for me, she borrow money extremely seldom and tries to avoid making debts. But if she borrow she always pay back in time and never have any problems, only use. You may have problems only if you misuse financial services and have missed or late payments and etc. Irresponsible borrowers always should pay back more in the end, that’s why they complain and say thateverybody just want to make money and get them deeper into the debt.
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