At some point in our lives we all have some sort of debt; student loans, mortgages and car financing are the most common types of debt we carry. Everyone seems to have his or her own opinions about debt and debt management; however there are a few myths about debt that most would agree on. Here are six most common debt myths, feel free to add your debt myth at the end.
1. Debt Is A Necessary Evil
This is often used to justify over spending and continuous borrowing, however it is a myth. Although debt may sometimes be needed to reach a certain goal it is not a way of life and not always necessary. Using the excuse that everyone is in debt only enables people to dig themselves deeper into debt.
2. Paying the Minimum Payment is Fine
If you are carrying a debt and only make the minimum payments it will take you years and thousands of dollars to pay it off. Although making just minimum payments are ok it is not fine, you should always try to make a larger payment than just the minimum in order to get out of debt. Having the mentality that minimum payments are fine can be an expensive one over the long term. Read More…