How to Change Your Mindset About Debt

Why You Need to Change Your Debt Mindset

Getting into debt can feel like a trap from which you can never escape.

But such thinking is not helpful.

The more you convince yourself you can’t do anything about the money you owe, the more it becomes a self-fulfilling prophecy.

You begin thinking to yourself, “what the heck? I’m in a mountain of debt already. What difference will a little more make?”

However, experts from across the field are quick to point out that you can change your mindset about debt and get out of whatever predicament you find yourself.

Here’s what they suggest you do.

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Take Ownership Of Your Financial Situation

The first step on the road to financial recovery is to take ownership of your financial situation.

Debts won’t disappear by themselves, and they will often usually get worse until you take decisive action.

Getting on top of your debts requires taking a long hard look at your finances.

Try to gain a clear picture of your current position and how you might claw your way out of it.

Evaluate your income and compare it to your expenses.

Be honest with yourself about your spending.

Take back control by understanding the prevailing circumstances.

Make It About You

Sometimes, indebtedness can feel like something that somebody else is doing to you.

Getting regular calls from creditors is not a pleasant experience.

You feel like you’re under attack all the time.

However, experienced credit counsellors have found that understanding why you want to get out of debt is an excellent way of changing your mindset.

Sometimes it is helpful to get angry about the situation.

Emotions can motivate you to take action, create a plan, and get the life you want.

After all, usually, you’ve done nothing wrong.

Why should you be denied a normal life, just because you’ve borrowed money?

Think Long-Term

When you’re in debt, it is easy to get into short-term thinking.

You constantly worry about making the next payment.

Counsellors and bankruptcy specialists recommend that you think more long-term.

Ignore the ups and downs of your finances today and, instead, focus on how you want life to be like in the future, once you’re out of debt.

Concentrate on a long-term goal, like owning a property, or having enough money to support your children.

View Advertising As An Enemy

Companies want you to spend endlessly on their products.

But consumer culture is your enemy, particularly if you are the type of person who easily goes into debt.

Next time you see a product you like, ask yourself if it’s really worth it.

Is it worth sabotaging your financial freedom, just to get something that will lose its appeal after a few days or weeks?

Usually, it’s not.

Review Your Repayment Strategy

Finally, reviewing your repayment strategy can help focus your efforts and change your mindset.

Once you see that your debt repayment schedule is finite, you instantly feel so much more motivated to tackle your financial problems and overcome them.

If you need help with debt, please contact your licensed insolvency trustee or credit counsellor for guidance.

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