4 Reasons Why People are Struggling to Pay off Debt

For most people, being in debt is an uncomfortable topic that they don’t want to talk about. Debt repayment can be a long and tiresome process and there is more to it than just focusing on the goal of becoming debt free.

Here are four reasons why people are struggling to pay off debt.

1. Lacking Money Management Skills

Lacking money management skills may be the main reason that people have trouble with sticking to their debt repayment plan. Knowing basics like how a checking account works, how a retirement account works or how investments work, will help you make responsible and informed decisions about your money. You may want to consider following a budget plan.

The key to successful debt repayment is being able to budget correctly. This is when you understand how much money is coming in and how much is going out – meaning how much you earn vs. how much you spend. If you are struggling to figure this out, try using budgeting apps, like Tayne Law Group’s Budget Jewel. Tools like Budget Jewel can aide in making you more conscious of your finances.

2. Inappropriate Use of Credit Cards

The inappropriate use of credit cards may count as a reason why people can’t meet their financial goals and pay off their debt efficiently. An easy way to keep an overview on your expenses is to use cash instead of credit.

People also tend to make the big mistake of making only the required minimum payment when paying off their debt. This results in owing a lot more money due to interest over time, which translates to more money spent over a longer period of time. When making payments on your credit card you should attempt to satisfy some of the principle balance, not just covering the monthly interest.

3. Can’t Say No to Their Kids

Parents in particular sometimes find themselves struggling to pay off their debt because it’s hard for them to say no to their kids. It is totally understandable that you don’t want your children to sacrifice anything just because you are in debt. Most of the time kids aren’t aware of their parents’ financial situation, which makes it hard for them to understand certain decisions.

Saying “yes” to whatever your kid wants will almost certainly lead you into even more debt. If you feel your children are mature enough teaching them financial literacy will go a long way both in the short term as well as their future. Coupled with that, learning to say “no” and setting limits is essential both to teach children and to stay on course with your own budget.

4. Not Having an Emergency Fund

Last but not least, not having an emergency fund is one of the reasons why people struggle with debt repayment. Borrowing money for unforeseen events is counterproductive when paying off existing debt. Emergencies can happen anytime. This can range from medical emergencies, to home or car repairs or any other unexpected bigger expense. It will hit you especially hard if you are in the process of paying off your debt. In case you don’t have an emergency fund you might need to direct the money that you would usually use to pay off your debt towards paying for the emergency. It is very easy to start contributing to a fund and you can start by adding a little money each month to always stay prepared.

There are many reasons why people find themselves struggling to pay off their debt. Not knowing about basic finances, getting lured into credit card deals, spending more on their kids than they can afford or not being prepared for emergencies certainly are only the tip of the iceberg. Can you think of more reasons for struggling with debt repayment? Feel free to let us know in the comments below.


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I just wanted to thank your entire staff at The Law Offices of Leslie H. Tayne, for helping me get out of debt. If it wasn’t for your firm, I would have never been able to resolve my $13k worth of debt in less than 3 years. Your staff did a great job, I was finally able to buy myself a brand new car without using a cosigner. I can’t tell you again how happy I am. I would recommend your services to anyone.

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I sleep like a baby at night now because of the work that you and your office have done. Rest assured that I will refer anyone I know to your office with conditions that are similarly circumstanced.

R.S. Client 2012-2014

You have been very helpful at first directing me in the right direction when I had no clue how to go about handling everything, I really appreciated all your advice and help and hope we can work something out. Thanks again for all your help and kind words, and patience.

D.M. Client 2009-2012