Does checking your credit score lower it? Plus 12 other common credit score myths debunked
Share Article via Email Getty Images Paying off your debt can seem like an obstacle you don't even know how to start climbing over. But first, you have to stop believing in these three common myths about debt.
Myth 1: You can't enjoy your life until you're debt-free If you're holding off on plans until all your debt is paid off, you'll never get there. Thinking you can't see the inside of a restaurant unless you're serving there doesn't help motivate you, argues Wells.
But it's really important to live our lives, too. Time is going by and we quick money myth or reality get it back.
Wells predicts she has another year and a half, or two, before they are paid off. As she multitasks paying off her student loans while saving for the future, she stores her money in a few high-yield savings accountsincluding the Ally Online Savings Account.
What's considered "manageable" differs for everyone and it depends on the type of debt you have and the amount outstanding. You might pay off your largest-balance credit card first or you tackle the debt with the highest interest.
Some of the money "facts" people have counted on for years when making important financial decisions are really just myths. Time to separate fact from fiction.
Make your debt load smaller, however you can, so you feel more in control. Myth 2: You're in debt because you're stupid "At this point, if you don't have some type of debt you're a unicorn," Wells says.
Even if you made a mistake and thought only paying the minimum on your credit card would keep you out of debt, negative emotions make it harder to come to terms with your debt. Instead, try feeling thankful for what your debt has given you: "I found gratitude with my debt, I needed those student loans to finish school," Wells says. While student loans can help increase your value in the job market, housing debt, such as mortgages, can help you build equity over time.
When it comes to qualifying for the best credit cards or even renting an apartment, your credit score matters. While establishing a good credit score is a vital piece of your overall financial picture, there are many common misconceptions about what does affect your credit score. Here's everything you should know about what makes that magic three-digit number go up or down.
While there's often a lot of shame that comes with having debt, know that sometimes, it works out to your advantage. If it doesn't, you can work on repairing your credit score and apply lessons learned to the future.
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Myth 3: Having the mindset that 'nothing is enough' Maybe you think you don't have enough money to start paying off your debt or your situation is too bad to ever get better.
Know that there are many options out there for support and there's nothing wrong with asking for help. And if you can't afford your debt payments, know that even a small find the fastest way to earn amount is enough to start paying off your debt.
For Wells, who once even made a payment of 60 cents toward her credit card debt, every little bit helped.