3 Irrational Debt Fears (And How To Let Them Go)

“Debt” feels like a 4-letter word. It can be a word that is synonymous with another 4-letter word, FEAR. Debt fears are one of the biggest things I’ve seen with my clients over the years.

Popular opinion would have you believe that getting into debt is the worst financial mistake you can make.

We’re told to avoid debt at all costs. Don’t take on debt, or it’ll get out of control. It’ll destroy your credit, you’ll never get out from under it, and it’ll ruin your life.

No wonder people are terrified of the “D” word, huh? But a lot of this debt fear is actually irrational, to say the least.

Because when it comes to debt, here’s what I want you to know…

DEBT and FEAR should have only one thing in common: that they’re both 4-letter words. No more, no less, my friend!

Not only that, but here’s a truth that might surprise you…

NOT all debt is bad. (Yep, you read that correctly!) 

Believe it or not, there are some scenarios in which taking on debt could lead to positive outcomes. We’re talking about things like investing in your education, buying a reliable vehicle, purchasing a home, or investing in your business. 

Still, the idea of spending money that you don’t have yet can stir up tons of irrational fears, even in the face of possible long-term positive outcomes. This triggers those debt fears that can get out of control.

In my personal and professional experience, I’ve narrowed it down to 3 primary (and irrational) fears around debt. I’ve also pinpointed the fears behind the fears. I’m sharing them all with you today so that you can get a fresh perspective on debt, why it doesn’t have to be terrifying, and how knowing these common fears will set you free. 

Ready to start seeing debt as an investment in your future instead of an unshakable burden?
Let’s look at all three of these debt-based fears right here, and how to let them go so you can clear space for the financial future you want.

The 3 Most Irrational Debt Fears (And How To Let Them Go)

1. Fear of debt getting out of hand. Debt spiraling out of control can be a REAL fear if you keep thinking in those terms. However, the actual fear is getting behind on payments and living beyond your means, causing your debt to pile high and create feelings of overwhelm. 

So the real fear here isn’t so much the debt itself, it’s the fear and overwhelm that the debt might cause. 

Solution: Here’s the thing: debt isn’t a way to create another revenue stream. It’s a way to float expenses and do it within your means temporarily. 

So if you need something like a short-term loan to help you keep your head above water, try thinking about it in this more logical way. Consider it a short-term solution rather than a long-term problem, and you’re free to choose with caution, not avoid with fear. 

Pro Tip: Your income should be enough for all of your living costs (read: budget), plus surprises. If you do choose to incur debt, be sure to break the payback down into manageable installments. Make sure the payments are within your means to pay off in time, and you’re not robbing Peter to pay Paul.

2. Fear of not knowing ENOUGH to invest (and take on debt). This was my number one fear. I believed I didn’t KNOW enough about investing in my business and myself, and therefore I wouldn’t do it at all. 

Again, my real fear wasn’t the debt itself. It was fear of the unknown. After all, if I didn’t know what would happen and I didn’t take action, I couldn’t be blamed if things went wrong.

Here’s what this fear was really all about: it came from not feeling like I was ENOUGH. I felt like I’d make poor decisions and get swindled into a bad deal. So I did nothing at all.

What this fear is all about is not feeling like you are ENOUGH. Yes, you can make some poor money decisions or be swindled into a bad deal. But there is always something more significant to learn in this space. Research and trust your gut.

Solution: Remember that even if you make a “bad” investment, there’s always a bigger lesson. So do your research before making an investment that might lead to debt, and trust your gut.

Most of all, give yourself a little more credit and take responsibility for your future. We live in a POWERFUL age of technology and information. There are a lot of great resources out there to help you make informed investment choices. So start from where you are, do your homework, and make the best choice that you can!

3. Fear of OWING (and paying excessive interest). Interest is basically buying time on borrowed money. The higher your interest rate, the more you’re going to end up paying in the long run.

Now, let’s be real–who wants to feel not only like they’ll be paying back way more than they received, but also feel indebted to someone else? This is where the real fear comes in. 

Owing money feels like you’re not fully in control. The real worry is feeling out of control with your own money. It leads to not trusting easily with money, too. 

Maybe you’ve been burned before by this sort of thing, or you’ve watched others close to you struggle with owing money. 

You may have been burned before or watched other close to you struggle with owing money. This only adds fuel to the fear. 

Solution: Learn to trust your relationship with and around money. Begin to see money as a value exchange and part of the process. Believe it or not, interest rates can even be a blessing. The borrowed cash helps you create something from nothing, and it’s helping you prioritize your money. 

Here’s the bottom line. If you’re contemplating making an investment that might lead to (temporary) debt, try this approach:

Practice caution, not fear. There’s a big difference between the two. Fear keeps you STUCK. Caution, on the other hand, keeps you SAFE. 

Moreover, remember this truth when it comes to debt of any kind:

The debt you choose to take on is only as good as the plan you have to pay it off, and the return on investment (ROI) that you expect to get out of it. 

Be informed, get advice, then make a plan. If you need to invest in your future by taking on debt, proceed with caution rather than with fear. 

Bet on yourself, and you’ll win every time!

Until Next Time,

Love, Light, and MONEY, Honey…

Kaylee