6 Reasons Why I Didn’t Pay Off My Debt Sooner

Anyone interested in personal finance and achieving financial independence appreciates the importance of getting out of debt. That, at least, we can all agree on. Yet just like getting in shape it’s a lot easier to talk about it than actually act on your goals.

For too many years I would make one of my New Years resolutions to pay off my debt, only to wind up 12 months later in exactly the same position making exactly the same resolution.

Now, finally, I’m virtually at the end of my debt repayment journey and am looking forward to a brighter and more financially sound future I thought it would be interesting to examine the reasons why I didn’t pay off my debt sooner – even though like a thorn in my finger it was a constant source of annoyance and even sleepless nights.

I Wasn’t Earning Much Money

The first problem I encountered was that I left university with debt, and then piled on more in the first few years of work. And when I say “work”, I use the term loosely. I certainly wasn’t one of these graduates that lands a six figure position straight after graduation.

Far from it; jobs were few and far between with all of my university friends struggling for any kind of gainful employment. In many ways, at that time, a degree wasn’t worth a huge amount and many of us – including me – ended up getting jobs we could have landed without three years of student debt.

I ended up working in a shop, a job which paid minimal wages. And while I did “move up” over time and receive pay rises, once I’d paid my living expenses there was never much “fun money” left over to invest in debt repayment.

I Didn’t Want To Compromise

The funny thing was that despite my low wages, I was actually enoying life. I enjoyed my job, I had a fantastic girlfriend, a decent house that we’d got a good deal on and lived in a nice area. I had a social life, hobbies and freedom.

Of course that “freedom” was an illusion. I wasn’t really free at all as the debt continued to accrue interest but after living like a student for years having a little cash each month made me feel like a king.

And that wasn’t something I wanted to compromise on. I didn’t want to give up my motorbike, or my occasional meal out, or slowly replacing my tired old wardrobe.

I’d “gone without” for too many years that this sudden feeling of not having to budget every penny was heady stuff – and I didn’t want to stop spending money just to repay debt that I was more than meeting my obligations on each month.

I Experienced Financial Bumps

Now I seem to be painting a picture of sunny carefree days. And to a large degree they were. But there were also financial hiccups along the way. Issues that cropped up that I hadn’t budgeted for. Heck, let’s be honest, I wasn’t budgeting for anything.

And every time one of these bumps came along, I found myself having to rely on my credit cards or a loan to resolve the issue. This, of course, grew my debt further rather than reducing it.

I Was Intimidated By The Immensity Of The Problem

Within a few years of leaving university and starting to enjoy life as an “adult” my debt had grown markedly. By the time it was touching five figures I could barely be bothered to open my monthly statements.

The figures we were talking about – and the length of time they’d take to pay off – were just too scary to consider. Like someone who is told by their doctor that they need to lose 100 lbs in weight, the task in front of you can seem so gargantuan as to prevent you ever getting started.

How much money would I lose from my disposable income? How would my lifestyle have to change? How many years would I be paying this money back for? It was a problem so huge that I did the only thing I could think of – and ignored it.

All the while, the interest continued to pile up.

I Didn’t Make It A Focus Point

Now, I knew that my debt was getting out of control. I knew I’d have to pay it off sometime and that the sooner I got started, the sooner I’d finish. I certainly wasn’t oblivious to the situation I was in. I just had so many reasons not to start.

So at the end of each year I’d set myself a budget. I’d decide on a realistic goal to pay off some debt that year. I’d try to motivate myself to pay off debt.

Then, within a month or two, this plan would be forgotten about. There would be more important priorities. I’d start my debt repayment plan next month.

And of course, I never really got started. I just kept putting it off and putting it off. And all the time I did that, the problem got worse.

So annoying had my debt become – and my failure to address the issue in hand – that eventually I stopped even adding it to my New Years resolutions because I knew, in all honesty, that I wouldn’t end up doing anything about. So waste time even pretending I would?

I Hadn’t Reached My Tipping Point

Finally, I reached a situation where my debt couldn’t be ignored any more. I was struggling (read: failing) to keep up with my minimum payments. My debt repayments were eating up ever more of my disposable income. I was starting to get red letters, and telephone calls I’d rather have not received. There was finally no way out – I had to face the problem head on and get it done.

Before this I had put off the situation for as long as possible (“manana, manana”) but now my creditors and my ever-shrinking disposable income and pushed me to my tipping point.

I was fed up with working hard all month, only to send what little extra cash I had after my expenses to my creditors. I was sick of receiving threatening letters. And I was sick of ignoring my cell phone and pretending to friends it was a “wrong number”.

Finally I had the motivation I needed to get the problem sorted.

Surprisingly just a few short years later I’d be totally debt free and wondering what all the fuss had been about. But that’s a story for another day…

Have you ever had any of these experiences? What was the “tipping point” that finally convinced you to get serious about getting out of debt? Please leave your thoughts in the comments below…