Bible Money Matters

Christian personal finance

Menu
    • About
    • Archives
    • Contact
    • Close
  • Making Money
      • Popular Articles

        • 50 Ways To Make Money: Maximizing, Creating And Increasing Your Income
        • 10 Weird And Unconventional Ways To Make Money
        • Making Money With A Blog (e-Book)
        • 10 Places To Sell Or Trade Your Unused (Or Broken) Electronics
        • Ways To Make Extra Money Series: 20 More Income Generating Ideas From Our Readers
        • Making Side Income Can Help Blunt The Impact Of Becoming A One Income Family
        • Earn Cash Back With Discover it® Credit Card
      • Recent Articles – Making Money

        • Best Sites Like Fiverr To Make Money As A Freelancer
        • 13 Of The Best Independent Contractor Jobs
        • 25 Of The Best Gig Economy Jobs
        • How To Make Money Blogging: Turn A Blog Into A Business
      • Categories

        • Making Money
        • Investing
        • Retirement
        • Jobs & Work LIfe
        • Money
        • Income
    • Close
  • Saving Money
      • Popular Articles

        • 50 Easy Ways To Save Money Every Month
        • 10 Weird And Unconventional Ways To Save Money
        • 10 Practical Ways To Save Money And Increase Your Net Worth
        • How To Save Money On Just About All Of Your Regular Monthly Bills
        • Ways To Watch TV Without Paying An Arm And A Leg For Cable TV
        • Save Money On Your Hospital Bill - Just By Asking
      • Recent Articles – Saving Money

        • How To Save $100k In 7 Practical Steps
        • Stairs App Review: Save And Invest To Earn 4-6% Interest
        • Honey Review: Save Money Automatically When You Shop Online
        • 9 Convincing Reasons Why You Need An Emergency Fund
      • Categories

        • Saving Money
        • Frugality
        • Planning
        • Finance
        • Saving For Retirement
        • Savings Accounts
    • Close
  • Banking
      • Best Rates For 2019

        • Best Credit Cards
        • Best Savings Accounts
        • Best Mortgage Rates
        • Best CD Rates
        • Best Brokerages
        • Free Credit Scores
      • Recent Reviews

        • TradeStation Review: Commission Free Stock And ETF Trades
        • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
        • Cadre Real Estate Investing Review: Commercial Real Estate Investing
        • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
      • Categories

        • Bank & Software Reviews
        • Investing
        • Credit
        • Banking
        • Mortgage
        • Insurance
        • Family Budget
    • Close
  • Recommended
  • Video
    • Close

4 Warning Signs That A Person Will Never Get Out Of Debt

By Melissa 6 Comments - The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited June 7, 2013.

Share86
Pin45
Tweet37
Share17
185 Shares

When I worked outside the home, I had a co-worker, Penny, who was very open about her finances and the fact that she was in debt–deeply in debt.  A few hundred thousand dollars in debt.

To her credit, Penny worked hard.  She was the first to sign up to teach additional classes, and she often volunteered to chair committees and run extracurricular activities because that meant she’d get some extra pay.  For awhile, she even took a seasonal job at Barnes & Noble.

There was no doubt that she was a hard worker, and she said she was committed to paying off the debt.  I cheered her on, and as I did, she began to share more and more about her debt, which she argued she was committed to paying off.

However, after a while, I couldn’t help but notice that the needle on the big debt-o-meter scale never moved.  Sometimes it even went up.  After awhile, I started to feel like I was watching the slow sink of the Titanic.

Penny may be a good barometer for the many in America who are deeply in debt.  Certainly she gave me a clear glimpse of her finances in a way that very few people do.

If you have debt to pay off, are you serious about paying it off?

Here are 4 signs, ala Penny, that you may not be serious about paying off your debt:

Quick Navigation

  • 1.  You shuffle money between credit cards.
  • 2.  Over a year’s time, your debt load has not changed or has only changed by a small amount.
  • 3.  You continue to buy things that you can’t afford.
  • 4.  You cash out your retirement account.

warning signs you won't get out of debt1.  You shuffle money between credit cards.

Moving a credit card balance with a high APR to a credit card with a 0% fixed APR is one thing.  To continue to shuffle around your credit card debt without making much progress actually paying it down is a good sign that you’re not dedicated to the repayment process.

2.  Over a year’s time, your debt load has not changed or has only changed by a small amount.

If you begin January 1st with $150,000 in debt and by December 31st you have $148,200 in debt, can you really claim that you’re serious about paying it off?  I don’t think so.

3.  You continue to buy things that you can’t afford.

Yes, you need to live your life while you’re paying down debt.   However, if you pay for non essentials like a new trailer for the family to go camping because you found a great deal and you were going to eventually buy one anyway,  you’re probably not serious.

4.  You cash out your retirement account.

Unless you’re at risk of losing your home or you need the money to pay bills for a sick family member, there is generally no good reason to cash out your retirement account.  If you do so, you may not have yet curbed your impulse to buy.  There’s usually no good buy that warrants robbing your future, even if you have the best intentions of paying it back.

Cashing out your retirement to pay off debt isn’t a very wise move, either.  I cringed when Penny did this.  She paid penalties, emptied her retirement, and applied it to her debt.  However, her debt was so massive, that even after this move she was still deeply in debt, only now without a retirement fund.

If you have debt to pay off, it’s your choice whether or not you want to attack the debt.

Some people don’t.  Some people make the same payment month after month and don’t accrue any new debt.  These people will eventually be out of debt, though it may take them longer.  However, the end result is still to be debt free, which is great.

However, if you want to eventual be free of the debt demon, you must change your behavior and stop going deeper into debt.

Related Posts

  • Which Debt Should You Pay Off First?

    Ordering your debts can help you create a plan that will allow you to get out of debt faster, saving money in the process.

  • Pay Off Your Debt This Way So You Never Go In Debt Again

    While financial gurus advocate cutting your expenses and not having a life for years until the debt is paid off, this couple took a different…

  • To Debt Snowball or Debt Avalanche, That Is The Question.

    I've been reading a lot lately about how one method or the other is best for getting out of debt. There are a ton of…

Share86
Pin45
Tweet37
Share17
185 Shares
Last Edited: 7th June 2013 The content of biblemoneymatters.com is for general information purposes only and does not constitute professional advice. Visitors to biblemoneymatters.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.

This article is about: Get Out of Debt

About Melissa

Melissa, a mom to three (ages 15, 10, and 9), blogs at Mom's Plans where she writes about homeschooling, health eating, frugal living, and paying down debt. She works as a freelance writer and virtual assistant.

Comments

    Share Your Thoughts: Cancel reply

  1. DC @ Young Adult Money says

    There are definitely changes that need to be made to get out of debt. If you can’t make more than a minimum payment on a huge debt load, you obviously will need to make some drastic changes if you ever hope to free yourself of the debt load. Making a plan can be a great first step.

    Reply
  2. Chad Pennycuff says

    I talk to “Penny” a lot in my 5 years of coaching. Folks like this need to get emotionally upset about their situation. The pain of staying the same has to get greater than the pain of change. People in this situation need to get sick and tired of being sick and tired. I tell these people straight up, if you’re serious about change, I can help you change you but you have to want to change you. Your money management system, your thinking, your behaviors, it all has to change. Another obstacle to over come is getting the spouse on board if Penny has a partner. The Penny’s of the world are stuck in a rut. It’s hard work getting out of a rut. But it is worth it.

    Breaking free from that debt cycle has to become your top priority for this period of time. The more factors we can stack up in your favor, the better. Reading this blog helps. Pete’s blog is top notch! Reading books on getting debt free helps. Take a class. Join a support group. Enlist support from your friends as accountability partners. People who break free almost have to declare a holy jihad on debt. If the lower cost items aren’t getting the results you want, hire a personal trainer for your wallet. You wander in debt but if you want out, you gotta break free. There isn’t one way out. There isn’t a magic bullet for debt. You really have to work every angle you can. The trick lies in finding the right combination of tactics.

    Reply
  3. Laurie @thefrugalfarmer says

    You’re right on here, Melissa. I’ve got people in my life just like Penny. I think Chad’s right on when he says “The pain of staying the same has to get greater than the pain of change”. That’s what worked for us. We hit “rock bottom” and said “Things have got to change”. Great post.

    Reply
  4. KC @ genxfinance says

    That is really scary to think that someone might never get out of debt, especially someone you know. But even those who are in the lowest pit of debt can still recover with the right methods. Hope this doesn’t happen to me or to anyone.

    Reply
  5. Prudence Debtfree says

    I’m saddened by your friend’s example. I reminds me of people I know who want to lose weight or pursue a dream – but who never take concrete steps to make it happpen. I believe it is possible to confront people stuck in such dead-end behavior patterns with the truth about the gap between their words and their deeds. If spoken with sensitivity and good will, absent of any judgement, such loving confrontation can help to free a person from self-imposed dead-end.

    Reply
  6. Dennis says

    #3 seems the main factor to me. Moreover, it’s the definition of “affording” that matter most. The best thing a person in debt cad do is adopt this approach: “if I *think* I can afford it, I can’t”.

    Reply
Previous Post: What Paperwork Do You Need To Get A Home Mortgage?
Next Post: Finding Happiness In Even The Worst Of Circumstances
Discover Investment Platforms

Popular Posts

  • 21 Easy Ways To Earn Free Amazon Gift Cards
  • 10 Best Free Tax Filing Services And Software Online
  • 21 Apps That Pay You Real Money Fast
  • 17 TV Apps And Live TV Streaming Services To Watch TV Free
  • 30 Legit Online Jobs That Pay Well
  • 37 Easy Ways To Get Free Gift Cards
  • How To Get Free Stock
  • 40 Easy Ways To Get Free Money Fast
  • 21 Places To Read Free Books Online
  • 24 Legit Online Jobs
  • 17 Best Work From Home Jobs: A List Of Legit Online Jobs That Pay Well

Recent Posts

  • How To Save $100k In 7 Practical Steps
  • How to Save Money When Remodeling A Home
  • How To Hire A Contractor For Your Remodeling Project
  • Remembering 9/11 Years Later: Where Were You On That Fateful Day?
  • TradeStation Review: Commission Free Stock And ETF Trades
  • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
  • Cadre Real Estate Investing Review: Commercial Real Estate Investing
  • Best Sites Like Fiverr To Make Money As A Freelancer
  • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
  • 30 Quotes About Easter And Resurrection: He Is Risen!

Disclaimer

The information contained in BibleMoneyMatters.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation.

In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.

Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.

Amazon and the Amazon logo are trademarks of Amazon.com, Inc. or its affiliates.

We respect your privacy: Privacy Policy.

Thanks for visiting!

Bible Money Matters - Seen On These Sites and more..
Bible Money Matters is a personal finance, entrepreneurship and investing community. Give more, save more and live more.

Copyright © 2023 · Bible Money Matters | Sitemap | Advertise | Privacy Policy