It is true that the vast majority of us manage our finances just as we have learned and as we have been taught in the past, but today there is much more information available quickly and easily, everything that can be collected on the internet is very much value to be able to modify our financial conduct, and finally get out of debt.
But even with this there are still myths that build great problems for our own finances , thoughts that seem real but definitely are not and that even believing them prevent you from getting out of debt.
5 Myths that prevent you from getting out of debt
1. It is impossible to save by having debts
Some time ago we wrote an article with 6 steps to pay debts and save at the same time, where we show that it is possible and in fact advisable to save money while paying debts. The trick is simply to prioritize your debts, be clear about your liquidity (net amounts available each month) and start gradually with your savings.
We must stop believing in this myth because it prevents having emergency money or saved money that could help you when you need it, by following the steps in the article you can pay your debts and save at the same time.
2. With small payments I will pay less
This is one of the most dangerous myths that exist today, and more because it remains a strong belief despite time and reality. We wrote long ago the article Paying a little bit is much more expensive in credits where we explain that, even though your credit will allow you to pay very small credits, you will be paying them for a long time, which makes the real and total amount of the credit greater than The original credit. Even worse when there is a delay in some payment , the debt grows more and more and it becomes a big problem to solve it.
3. Buy months without interest is more convenient
This myth is partially reality, but only partially. The most convenient thing will always be to buy with liquidity, that is, to pay the total amount in a single exhibition. Why? Simply because there are probabilities of late payment in months , which would immediately increase the original price of your purchase and could even generate a debt that hurts your personal finances.
4. It is enough to pay the “minimum not to generate interest”
It is never enough to pay the minimum to not generate interest, in reality, when you make this payment you are not covering your debt and, therefore, you are opening an opportunity for your debt to grow and with it your interests. The best practice will always be to pay your total debt (be “ totalero ”), in this way you ensure that you will not pay any interest and that your finances can stay afloat.
5. Investing money is only for professionals
Investing can be synonymous with saving, there are platforms that work perfectly to invest in projects and have excellent returns. A few weeks ago we shared the Webinar benefits of peer to peer lending to save, where we describe the steps and benefits to invest and activate money.
Therefore, this myth is also worth discussing, since investing adds a lot of value to our money.