Here’s How Social Media Warps Our Perceptions of Debt
I’m a Debt Expert: Here’s How Social Media Warps Our Perceptions of Debt
September 4, 2024 Vance Cariaga GoBankingRates
Fancy meals, international vacations, luxurious nights out on the town — people share everything on social media. Or so it would seem.
One of the biggest problems with social media is that people only share what they want you to see. They’re not often sharing the difficult things we all go through, or even the mundane day-to-day life moments. And that has the power to skew the way we see all sorts of things — including debt.
This selective sharing can warp our perception of finances, according to Marc Russell, a Financial Literacy Educator, founder of BetterWallet and member of the Financial Board of National Debt Relief, a company that provides debt settlement and relief services.
“Social media is often viewed as a ‘highlight reel’ that only includes success and not the natural struggles of the creators,” Russell said in an email. “You see this often with some financial content.
Creators are quick to speak about the big financial goals they reached, like paying off debt, but not often do they discuss the sacrifices and the support they received throughout the journey.”
A More Honest Look
Russell has plenty of expertise in this area in his role as an active financial coach across various social media platforms. At National Debt Relief, he’s part of a team whose mission is to redefine the debt-settlement journey by empowering, supporting and guiding clients so they can improve their financial wellness..
Too often, Russell says, not enough information is shared on social media that provides a rounded view of the risks involved with debt.
“Creators won’t discuss cutting back on the things they love and mistakes they made along the way to becoming debt-free,” Russell said. “To be fair, I believe sharing the success motivates people to get started, but we all know that most financial goals are sometimes a long and arduous task that takes a high level of daily commitment.
The entire process can be daunting, and if the person you follow is only sharing the wins and not the complete story, it’s easy to lose motivation after the first rush of excitement.”
Another problem with social media is that algorithms favor short, snappy posts or videos — especially with TikTok. As Russel explained, the algorithm currently rewards creators if they post short, yet engaging videos.
“The challenge is that 30-second videos often include a hook, a little bit of context and a call to action,” he said. “The lack of context can be damaging to viewers, because it assumes that everything is a quick fix and there are limited steps to achieving their goal. This is particularly bad as it relates to paying off debt.”
Why it Matters