Have you heard the phrase ‘making more money will not get you out of arrears‘? It sounds illogical and even demotivating for someone who has accumulated debt and is looking to other income to pay it off, but it is not necessarily true.

In fact, making more money allows you to pay off debt, if you use that money responsibly. Mariasol Trujillocommercial director of Ansuz Consulting Group, believes that everything depends on financial culture.

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“When it’s said that the more you earn, the more you spend, that’s a fact, because you raise your lifestyle, and as you raise your lifestyle, you spend more,” explains Trujillo.

A more appropriate expression, according to the financial expert, would be “If you don’t improve your financial culture, even if you make a million dollars a year, you won’t be able to get out of debt.“.

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What is financial culture?

Financial literacy is key to managing personal finances. is around make informed and responsible decisions about your budgetincluding debts you take on, your expenses and savings.

It’s also about being able to make a plan to pay them when you get into debt.

“The only way you’re going to get out of debt is making a debt repayment planregardless of how much you earn,” commented Trujillo.

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He added that if you earn enough money, it would be ideal to use part of it to pay off interest on previous debts and invest the rest, since that investment generates interest and you can use that interest to pay off debts.

“Money will get you out of debt if you know how to do it and if you have the tools to do it,” said the finance expert.