Why downer debt keeps you down

It’s a ball and chain we’re dragging around. 

Downer debt is debt that is seriously dragging down our ability to work toward those dreams down the road. It can be the result of a not-so-wise decision. Like putting that weekend getaway that we really couldn’t afford on a credit card. Or it could be that we’ve been putting off starting our emergency savings--then the car breaks down and in a panic we get a payday loan (yikes!). 

None of us likes this kind of debt. It makes us feel like we're always trying to catch up. But downer debt doesn’t stop there. 

Downer debt costs us more

Downer debt makes everything more expensive. Say we owe $10,000 on a credit card with a 15% interest rate and we’re only making the minimum payment each month. That $10,000 charge balloons to well over $25,000 by the time we finally get it paid off. And paying it off this way could take years! 

Downer debt steals our time, setting us back years as we struggle to pay it off. It steals our money, costing us a ridiculous amount in interest charges. And once we do escape its clutches, we find ourselves no farther along than when we started this frustrating dance with downer debt. 

(If you’re looking for the right plan to help pay off credit card debt, we’ve got an easy-to-use debt elimination calculator that can help you think through the plan that’s right for you.) 

Downer debt causes stress 

Let’s face it – downer debt causes worry and anxiety. In fact, debt is the top cause of financial stress in 35 states, according to GOBankingRates research from September 2017. And stress can cause all sorts of issues for us, affecting everything from our job performance to our relationships, and even our health.  

Downer debt keeps us from getting ahead 

When we have this downer debt, we don’t have the money to put toward all those things that help us feel like we’re getting ahead (like saving for our kids’ college or our retirement). 

It also keeps us from taking advantage of borrowing to buy a home (smart debt). It’s hard to save for a down payment when we’re trying to pay off credit cards. Plus, that downer debt could hurt our ability to qualify for a home loan. 

Downer debt can drag us down, keeping us from getting ahead in life. But it doesn’t have to be that way. Check out the Dominating Debt ebook to help find the right plan to break free from the ball and chain that is downer debt. Once and for all. 

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