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Debt is often associated with negative emotions such as shame and anxiety, but financial educator Rita-Soledad Fernández Paulino emphasizes that it should be viewed as a tool rather than a moral failing. As the founder of Wealth Para Todos, she aims to dismantle the stigma surrounding debt and educate individuals on its strategic use.
A common misconception is that individuals in credit card debt are simply poor with money. However, a 2025 survey from Bankrate reveals that nearly 45 percent of people in credit card debt incurred it due to emergencies or unexpected expenses, such as car repairs or medical bills. Fernández Paulino notes that many clients face significant life challenges, such as the loss of a loved one or health issues, which can lead to financial strain. She advocates for establishing an emergency fund alongside debt repayment plans to safeguard against future setbacks.
Another prevalent myth is the belief that debt should be avoided entirely. This fear often stems from personal experiences with financial hardship. However, Fernández Paulino argues that avoiding debt can be counterproductive. For instance, individuals who have never used credit may struggle when they finally do, lacking the knowledge to manage it effectively. Having at least one credit card in good standing can positively impact credit scores, opening doors to loans and better interest rates.
Lastly, the notion that getting out of debt is impossible can feel overwhelming for many. Progress may seem slow when monthly payments barely make an impact. However, Fernández Paulino asserts that it is feasible to reduce debt over time. Building a monthly surplus—extra funds after covering essentials—can accelerate repayment. This may involve cutting expenses or finding additional sources of income. While some individuals may eliminate significant debts within six months, others may take longer, but consistency is key.
In summary, debt is a common aspect of life, particularly during challenging times. By challenging misconceptions and understanding how to manage debt effectively, individuals can regain control of their financial futures.
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