Three ways getting out of debt starts with your habits
If you’re in debt, you’ve probably found yourself saying, “I want to get out of debt” more times than you can count. So, why is it so difficult to escape from debt? At first glance, it seems straightforward: either increase your income or reduce your expenses and use the extra money to pay off your debts.
The real challenge, however, is that being in debt can become a hard habit to break. It’s similar to indulging in that extra piece of cake even when you’re full or skipping the gym despite knowing how beneficial it is for your health. Breaking habits is tough, so let’s explore three ways to start getting out of debt by focusing on your habits:
1. Stress spending
One habit that can lead to debt is spending money when you’re feeling stressed. Although it might seem counterintuitive, people often make rash decisions or quick judgments during stressful times. Some individuals even experience a rush from spending money, only to feel regret later when they realise it wasn’t a smart choice.
To break this habit, it’s helpful to find alternative ways to relieve stress. Consider practising breathing exercises, going for a walk outdoors, or calling someone to have a conversation. Once the stress has passed, you may discover that you no longer feel the urge to spend money. For more tips on managing stress and staying calm, read: Stressed – here’s how to find calm.
2. Procrastination
One common debt habit is the tendency to delay addressing financial issues. For instance, you might wait until the day a bill is due to start looking for money to cover it. You may also find that the feeling of “living on the edge” – not knowing how you’ll pay your bills—becomes a normal part of your life. In other words, living paycheck to paycheck and being in debt can feel routine. This habit can be very challenging to break, especially if you have grown accustomed to this way of living.
3. Overspending
There are smaller habits that can be easier to change, such as eating out frequently, spending too much on social events, regular gambling, or subscribing to too many digital services. By being disciplined and avoiding daily purchases like takeaway coffees and lunches at work, you can save thousands of dollars each year.
When considering your debt and how to manage it effectively, it’s crucial to break the bad habits that contribute to the cycle of debt.
If your debt has become unmanageable and is spiralling out of control, we can help you get your life back on track. Request a free debt assessment today—what do you have to lose except your debt?