"I'll Always Be in Debt"
"This is the mindset of a dependent type of personality,” says Fran Walfish, Psy.D., a Beverly Hills psychotherapist and author of “The Self-Aware Parent.” Dr. Walfish says this describes “somebody who is afraid to go out into the world and give things a shot on his or her own. Maybe this person feels that Mom or Dad will pull them out of a financial hole. Working on autonomy and independence by taking baby steps is key.”
For example, you may not be able to get out of all your debt right away, but if you try putting a small amount of your own money (even $5 or $10) toward a debt payment, you may find the sense of accomplishment empowering. You can look in the mirror with confidence and say: “I did that—all by myself.” Trust us, this far beats waiting to be rescued.
It’s also critical to keep in mind that there are two kinds of debt: good debt and bad debt, according to LearnVest Planning Services Certified Financial Planner™ David Blaylock. Paying off a mortgage or a student loan is considered “good debt,” because those are investments that can help you earn more money in the long-term.
Auto loans and credit card balances are considered bad debt because they aren’t moving you toward building wealth over time—cars depreciate (instead of growing in value like a house or enabling you to increase your earning potential like education) and paying credit card interest just means that your purchases become more expensive over time. Don’t get down on yourself if you have good debt. “Focus first on getting rid of any bad debt,” says Blaylock.