16 Key Signs That You Will Always Be In Debt
Katherine Mazzei 1/17/20 1 min read
Our CEO, Roi Tavor, talks to GOBankingRates about debt, long-term consequences and how to best tackle it
In this article our CEO, Roi Tavor, speaks to GOBankingRates about debt and the importance of tackling it systematically. “The most common mistake when it comes to short-term debt such as credit cards is the belief that one needs to save and invest simultaneously,” Roi says.
Getting into debt is easy — and the numbers prove it. About 80% of Americans across generations are currently in debt, a 2019 Nitro survey found. And the total amount of household debt in America is nearly $13.95 trillion, according to the Federal Reserve Bank of New York’s most recent report on household debt and credit.
There are plenty of ways people fall into debt, way too easily. The hard part can be getting out of it, especially if you don’t recognize — or resist admitting — how you racked it up. Here are 16 reasons you might have fallen into debt and how to avoid being stuck with it forever.
You Have Your Financial Priorities Mixed Up
If you’re not allocating your money wisely, it will take you longer to pay off debt than it should. Any money you are putting toward saving and investing accounts is money you aren’t putting toward paying down debt.
“Before putting money in a savings account that yields 1% or 2%, make sure to pay off credit cards that charge you 10% or more on outstanding amounts,” Roi says.