3 Toxic Myths You Believe About Getting Out of Debt

Today, we'll cover the 3 toxic myths about living debt-free that we all MUST break away from in order to achieve debt freedom.

Getting your mindset right is the #1 thing you have to conquer if you want to succeed. Remember it’s more about your behavior than it is about how much money you have. 

Over the past six years of talking about financial freedom on the internet, I have heard a lot of concerns, fears and reasons people feel like they can’t get ahead. And some of them are very, very valid. But some of them are excuses. (Here comes tough love Lydia.) And many of them are excuses I used for YEARS that kept me in debt and not owning my own finances. 

Let’s bust some myths. 

Myth #1: "I need a big income to get out of debt.” 

No, you DON'T have to have a six-figure income to pay off debt. But you might need a little encouragement.

Have you ever heard a Debt Free Scream on the Dave Ramsey show? Or seen someone hold up a letter board on Instagram stating their debt at $90,000 and their income at $150,000.

But you don’t need a huge income to pay off debt. Even if you have a HUGE amount of debt. I did it. We had $36,000 of debt and a $38,000 income.  

Read more: You don't need a 6-figure income to pay off debt

Myth #2: "You have to live on a super strict budget and never have fun” 

This is SO not true.

I know plenty of people who go on vacation. Shop. Eat out and way more while paying off debt. 

I think that misconception comes from the fact that for years the narrative was you had to sacrifice EVERYTHING. And I know I was a part of that narrative. And for that I am sorry. We did sacrifice a lot to get out of debt. That was the choice we made because we were done and we knew if we buckled down we could get through it fast. For us it was WORTH the sacrifice. We had two small babies at the time, it’s not like we were going on vacations anyway. 

And when we were finished we bought a house and a year later we went on our first debt-free vacation to Disney. 

But I fully believe you absolutely can go on vacation while paying off debt. You can go to dinner. You can go to concerts. (Of course, you can do none of those things in Covidland… but that’s not the point…) 

You just have to plan for them. Budget for them. Save for them. Don’t go back into debt for them. Because no vacation is worth that. Unless it’s Hawaii… but I wouldn’t know. I’ve never been. 

Myth #3: There is only one way to do it

When it comes to following ideologies, even those that relate to debt, people can become pretty dogmatic. If I had a nickel for every time I heard “Well [fill in the blank with money guru] says…” I would put Jeff Bezos to shame. And if I happen to say I disagree with someone about the size of an emergency fund, when to consider investing in retirement and that mutual funds are not a great investment, I get RAGE FIRES in the comments. 

But following someone over a cliff when that person has nothing to do with your actual finances is unwise. It’s okay to glean what works and leave behind what doesn’t. Because if 2020 has taught us nothing else, it’s that nothing is certain and a small starter emergency fund won’t get you very far. 

The truth is the best way to get out of debt is the way you can manage. It’s the plan you can stick to. If it’s a snowball, an avalanche, or a very tiny shovel, that’s all fine. Because at the end of the day it’s YOUR money. It’s YOUR future. It’s YOUR goal.

It’s okay to go your own way. No one can walk this for you.