Home > Debt > 5 Reasons Why Consumers Can’t Get Out of Debt

5 Reasons Why Consumers Can’t Get Out of Debt

This is a guest post. If you are interested in guest posting, please read my policy and contact me.

file6321238876778It is not unusual for a consumer to run into money issues. If a person attempts to get out of debt, he or she generally face many obstacles, not least themselves. Identifying the real reasons behind the failure can aid in reaching the goal of healthy financing, which is exactly what this post is all about.

1. Lack of a Budget

When you cannot break out of accumulating debt, it may be due to the lack of a budget. A budget allows you to limit the amount of money that is available for spending on a weekly or monthly basis. The budget plan may be for an individual; if this is not the case, a family may create an overall budget to keep spending under control and make sure there’s enough in the kitty to cover essential bills. It is a very good idea to leave the budget plan in a prominent place at home as this may help you to resist the urge to spend money you don’t have.

2. Poor Discipline

You should be able to fight the urge to leave the home or go online in order to fulfil a personal desire. If you shop on a frequent basis, it could be due to a lack of discipline. You may feel that it is not possible to look at products without purchasing one. You may feel that the power necessary to fight the urge is simply not yours and that it will never be present. This commonly leads to people purchasing something regardless of their financial situation, even when they know that they are getting themselves into even more debt.

3. Isolation from Positive Influences

It is necessary for anyone with debt problems to have a positive influence in some form. This influence may come in the form of a responsible friend or neighbour who budgets their money and knows the power of restraint. However, positive influences may not be around during every hour of the day. And when you can shop 24/7 courtesy of the internet, you can’t rely on always having someone around to persuade you not to spend unnecessarily. Whoever you may be relying on for help will probably have their own troubles to deal with, and what’s to say they won’t be influenced by your poor monetary habits?

Yes, it is crucial to keep positive influences around in some form as this will allow a person to remain strong in difficult situations. But at the end of the day, you can’t rely on someone else to fix your problems.

4. Temptation

If debt is still an issue, it could be because of the temptation to spend money. Some people find it nearly impossible to resist the urge to splurge, especially at certain times of the year like Christmas. There may be a sale at a store that is closing. You may simply want to reward yourself for accomplishing a goal. The temptation to spend is all around, everywhere you look. We’re all bombarded with advertisements each and every day. Being able to say no, even when you really want something and think you can justify it, is key to getting out of debt. So if you are susceptible to temptation, you might decide to apply for a low interest personal loan that you can’t actually afford.

5. Old Habits

Old habits can be particularly hard to break. Some people cannot stop smoking, no matter what they try; other people may have a habit for eating unhealthy foods. If you have a habit of spending money, it may take a long time to fix the issue. You may even be pretending that debt is not an urgent problem that needs to be addresses – that it can be dealt with some other day when. This is simply not true. Just because your debt has been around for so long that you know it by name, doesn’t mean it should be around for as long again!

About Kim Parr

Kim Parr is a private practice optometrist, freelance writer, and personal financial blogger. You can follow her journey to 20/20 financial vision at Eyes on the Dollar.

8 comments

  1. Most people in debt probably go through ll of these in one way or another. In order to get and stay out of debt, you must change your spending habits. If you don’t you are destined to return to your bad habits. Similar to weight loss, you can lose weight, but to keep it off you must change your habits.

  2. Lack of budget and poor discipline were reasons why our money was flying out the door and we had no savings. I am glad that we are on a path of getting out of debt now. Whew! 🙂

  3. It is very hard to change a habit, especially if you keep thinking “it’s not so bad”. I never did bad with finances but lacked discipline and drive, I could have done much better until I realized small spending habits were slowing me down.

  4. I would have to admit I have fallen for a few of these such lack of a budget. I’m not a particularly a big fan of setting up a budget and sticking to it but I’ve been interested in trying the envelope system though.

  5. Consumerism is a contagious disease. As we interact more in social media, most companies are getting smarter at targeting their consumers.

  6. I agree most people get out of debt and then get right back into it again. Its a bad cycle.

  7. Good post, but I have to disagree as to why we don’t get out of debt. Its this reason that we don’t budget, have enough discipline, get tempted, and succumb to old habits… Getting out of debt just isn’t important enough to us. See, if it were, we’d figure out a budget, stay focuses, steer clear of money landmines (temptation), and live new habits that support getting out of debt. That is why we don’t get out of debt… It’s just not important enough (yet) for most of us (raising hand, trying to do better with debt myself).

Leave a Reply

Your email address will not be published. Required fields are marked *

*