On the surface, it sounds so perfect. There are people who purportedly live picture-perfect lives of travel, fashion, and glamor who are hits on Instagram. Others are vloggers on YouTube that promote being a “digital nomad.” This, in turn, leads to people believing in the hype created from photos and short vlogs that all of these people really have the lives they are depicting on social media.

Here at Grand Canyon Advisors, we are concerned when we see so many people depicting unrealistic “bubble lives” to others. The problem we see is that others get influenced to try to live in the same manner and then get in over their heads in a financial mess that can harm their future plans.

Why Is Credit Card Debt Bad?

It all sounds so easy. You can just buy some big-ticket, impulse items, like fashion boots that cost $300. Then, you can pay it off over time. Today, that is really tough if you are using credit cards. According to The Balance, the average credit card interest rate in October of 2019 is just under 22 percent. As one amasses more and more purchases to impress their “friends,” one ends up paying more and more in interest each month. Eventually, it gets hard to pay off the balance, and you end up only paying the principal each month, never getting out of debt.

Examples

One example is Instagram influencer. According to Market Watch, she decided to tell the truth to help others not follow into her bad habits. She racked up $10,000 in credit card debt, living at her parent’s house, as she tried to make others believe that she was a wealthy person. She was trying to be a fashion influencer. Every month she would purchase a designer item, and she would indulge in frequent shopping sprees. The idea was to never be seen in the same outfit. She traveled once a month for an entire year in order to perpetuate the idea of the carefree, jet-setter.

On YouTube, one can find “digital nomad” influencers. They go to exotic locations and promote a nomadic lifestyle, which involves having to work online. Some have RVs and others have Sprinter Vans or simply fly from place to place. Many states that being a digital nomad is simple, easy to accomplish, provides remarkable freedom and helps one acquire wealth.

This is not to say that all social media influencers are shallow or deceitful. But, often one can carefully watch the double-speak and see through the apparent lies of all too many. For this author, who is a non-glamorous, genuine digital nomad, it is easy to see through the van couples that go to an exotic locale, stating they are full-timers on the road. They often have little in their vans. A full-time vanner has their van crammed with clothing for all four seasons and all of their gear for daily life. These people are trying to get compensation by showing us something that is mostly an illusion.

A Warning

Chime Bank warns people to not overspend in order to get someone else’s approval. If that is how you need to get their approval, it is time to search for true friends. People need to save their money in order to be ready for emergencies and to have a full life with, hopefully, a family and some kind of home or land. Buying the latest fashion every season could simply burn a hole in your bank account and lead to financial ruin with heavy debt.

What to Do

Put the Cards Away

If you have already amassed too much credit card debt, you need to put the cards away and simplify your life. By the way, having to keep moving every two weeks or less does not simplify your life. Nor is your life simplified by only being able to get online jobs.

Pay High-Interest Debt First

Pay off the highest interest rate credit card first, so you can get out from under those huge payments right away.

Lower Your Interest Rate

Lowering your interest rate can involve getting a zero-interest rate or balance transfer credit card. Then, you can begin saving for a more satisfying future.

If you are struggling under heavy debt, call Grand Canyon Advisors. We have solutions