Why Being In Credit Card Debt Doesn't Mean You're Bad With Money - Beritaja

This communicative is portion of Life Kit's Guide to Paying Off Credit Card Debt. Sign up for the month-long email series to get master strategies connected managing debt. 

People could consciousness a batch of shame about being successful in installments paper debt. They deliberation it intends they're bad pinch money. That it's thing to avoid, aliases a load they could ne'er salary off.

But for financial pedagogue Rita-Soledad Fernández Paulino, laminitis of Wealth Para Todos, we should simply spot indebtedness for what it is. "It's conscionable what we usage erstwhile we don't person entree to rate reserves."

And unfortunately, our assumptions and emotions about indebtedness could forestall america from managing our money pinch confidence, she says. They could extremity america from being honorable pinch ourselves about our financial situation, getting the support we request to salary disconnected our indebtedness aliases moreover leveraging indebtedness to our advantage.

Here are 3 communal indebtedness myths and really they could impact our finances.

Myth: People successful in installments paper indebtedness are unspeakable pinch money 

Some group deliberation that those pinch indebtedness person a spending problem aliases don't cognize really to budget, says Fernández Paulino. But that's often not the case.

About 45% of respondents to a 2025 Bankrate study said that their in installments paper indebtedness came from emergencies aliases unexpected expenses. That includes car problems, aesculapian bills and location repairs.

People besides rack up indebtedness during stressful life events. "The clients that travel my measurement person usually dealt pinch the decease of a loved 1 and are struggling pinch truthful overmuch condolences that they struggle to show up for work," Fernández Paulino says. "Or they've been dealing pinch aesculapian issues and are successful indebtedness for treatment."

That's why it's truthful important to stash money distant for emergencies while creating your scheme to salary down your debt, she says. If an unforeseen arena happens and you don't person those funds, you whitethorn get stuck successful different rhythm of debt.

Create your scheme to salary down debt. Sign up for Life Kit's newsletter series. 

Myth: You should debar indebtedness astatine each costs 

People whitethorn consciousness frightened aliases blameworthy about utilizing a in installments paper for galore reasons. Maybe they grew up successful a family that struggled pinch debt, didn't talk about finances aliases dealt pinch bankruptcy aliases a location foreclosure, Fernández Paulino says. "They turn up thinking: Debt is the problem, truthful I'm ne'er going to usage it."

Others debar in installments cards because they grew up pinch misconceptions about debt, stemming from a deficiency of knowledge about really finances activity successful the U.S., says Fernández Paulino, who useful pinch galore immigrants. "So erstwhile they commencement utilizing a in installments card, they don't cognize really to usage it."

Everyone should person astatine slightest 1 in installments paper successful bully standing, says John Kiernan, managing editor of WalletHub, a individual finance website. "It sends affirmative accusation to the in installments bureaus each month, which makes your in installments study look amended and leads to a amended in installments score, which opens a batch of doors for lending."

Learning much about really indebtedness useful could thief you understand really to usage your in installments paper strategically, Fernández Paulino says.

To study much about really in installments cards work, motion up for Life Kit's newsletter series. 

Myth: Getting retired of indebtedness is impossible 

"It isn't existent that you can't get retired of debt," Fernández Paulino says. "What's existent is that without capable monthly surplus — money near aft fixed expenses and adaptable expenses, minimum payments and immoderate redeeming — advancement is slow."

If you want to salary disconnected your indebtedness faster, attraction connected "building a surplus truthful there's important other rate to propulsion astatine balances," she says. That mightiness mean tightening your fund to prevention much money, aliases getting an other root of income.

"When clients build that surplus, they could make dents quickly," she says. "I've had clients destruct 5 figures of indebtedness successful six months, others return 12-36 months."

The timeline of erstwhile you salary disconnected your indebtedness is driven by 3 variables: starting balance, liking complaint and accordant other rate flow, she says.

Find retired really to prevention money successful your fund to salary disconnected debt. Sign up for Life Kit's newsletter series. 

Sign up for Life Kit's Guide to Paying Off Credit Card Debt

In this one-month newsletter series, financial educators explicate really to create a in installments paper costs scheme that useful pinch your budget, truthful you could prevention money and make a meaningful dent successful your debt.

Sign up for the newsletter here.

The integer communicative was edited by Clare Marie Schneider and Marielle Segarra, pinch creation guidance by Beck Harlan. We'd emotion to perceive from you. Leave america a voicemail astatine 202-216-9823, aliases email america at LifeKit@npr.org.

Listen to Life Kit on Apple Podcasts and Spotify, aliases motion up for our newsletter.