Three ways getting out of debt starts with your habits
If you’re in debt, you’ve probably heard yourself say “I want to get out of debt” more than one or two times. The question is, why is it so hard to get out of debt? On the surface it seems pretty simple – either make more money, or cut down on expenses and apply the extra money to the debts.
The problem, however, is that being in debt tends to be a hard habit to break. Debt is much like eating that extra piece of cake even though you’re full, or not going to the gym even though you know it will help your health. Habits are hard to break, so let’s take a look at 3 ways getting out of debt starts with your habits:
1. Stress Spending
One habit that may lead to debt is spending money when you’re stressed. It seems counterintuitive, but when people are stressed, they tend to make rash decisions or make quick judgments. Some people even get a rush from spending money, but then feel regret later when they realise they shouldn’t have spent it. In order to break this habit, a good rule is to find another way to relieve stress – practice breathing exercises, get outside and go for a walk, or call someone and have a conversation. After the stress has passed, you may find that you don’t feel the need to spend money.
Another debt habit is to always delay dealing with it. For example, you may wait until the day a bill is due to try to find money to pay it. Or, you may find that the feeling of “living on the edge” of not knowing how you’re going to pay your bills is a normal feeling. In other words, living paycheck to paycheck and being in debt starts to feel normal. This habit can be very hard to break, especially if you’ve become used to living a certain way.
There are also smaller habits that may be easier to break; for example, eating out too much; spending too much money on social events, regular gambling or paying for too many digital services. Being disciplined in such things as not buying takeaway coffees and lunches at work every day can save you thousands of dollars a year.
When thinking about your debt and how to master it, it’s important to break the bad habits that continue the debt cycle.
If your debt has become unmanageable and spiraling out of control, we can help you get back on the path to financial freedom. Book a free debt assessment today — what have you got to lose, but your debt!