Is Debt Strangling Your 2026 Plans?

It is so sad that so many people have started this New Year out with debt. I am seeing it all over social media. Some people are using cards to buy food. Many celebrated Christmas in a big way even though they couldn’t afford it. Their thought process was I work so I deserve it. I hate that line of thinking. No one deserves anything that they can’t pay cash for. All it does is get you into years of debt that you can’t get out from under.

I wonder how many people have kept track of how much interest they have paid on their debt over the years. I would bet the numbers are shocking. Can you imagine how much money you would have in investments if you didn’t use those cards? You would be so much better off.

I know it is hard right now with prices rising so rapidly but going into debt is not the answer. Living within your means is the answer!

If you are living paycheck to paycheck and don’t have enough to pay for food, don’t charge that food. There is no shame in going to a food bank for your food if you are in desperate times. But you also have to do something so that you make your situation better. If you don’t make enough money take on a second job or a side hustle like Door Dash. Use that money to get rid of your debt. Will it be easy? No but it will be worth it in the long run.

Learn to say NO! When friends want you to go out to a bar for the evening, go to a movie, go to the casino, or even out for fast food or dinner, say NO. Put that money on your debt.

Almost every item you thing you need to buy is most likely a want. Think long and hard about every purchase! Ask yourself, do I really need this? Will it make my life better or will it become just more stuff that I never use? Can I pay for this in full when my credit card comes due? If the answer is no, don’t buy it.

Go look in your closets now. How many of those clothes do you not even wear? I would bet that you could sell half of what you own and not even miss it. How many pairs of shoes are enough? And all those handbags, how often do each of them get used?

We pay cash for everything and I am in the process of getting rid of stuff I don’t use. As I am doing it, I am thinking to myself why did I buy it in the first place. Was it because I saw it on a You Tube video or it was trending? If the answer was yes, I am thinking about how stupid that was.

If you are in debt whether it be credit cards, car loans(many owe more than the car is worth), payments you are committed to because you were dumb enough to buy something on credit that gave you a year free(or whatever the deal was) and didn’t pay it off in time, or even home equity loans that you used to pay off your credit cards which is a really bad idea, make this the year you work really hard at getting rid of your debt.

But as you do that save at least $5,000. in an emergency fund. I know Dave Ramsay says you only need $1,000. but that won’t get you far today in a real emergency. Start selling all those things you bought that you really don’t need to build that emergency fund. I never had to do the Dave Ramsay plan because we didn’t do debt. But out of curiosity to see what it was all about, I read his books. Even though he is an old guy, his advice rings truer than most any advice out there. I was so impressed that I gifted his Baby Steps book and his Millionaire Baby Steps book to someone that I care about recently. When that person gets rid of the debt, then that person will need the Millionaire book to build their wealth. Yes it can be done. Dave did it and so can you!

If this advice sounds harsh, it wasn’t meant to be. It was meant to motivate you into getting rid of your debt and building a better life for yourself. It is never to late to do that no matter how old you are!

Let’s make this the year you finally do it! Then 2026 will be the best year ever!