Last week I announced the launch of a new weekly series: the Sunday Spotlight!
Each week, I’ll share one of my favorite articles from around the personal finance blogging community.
In case you missed it, last Sunday I shared my thoughts on a post called The Ultimate Guide to Managing Money (in Under 10 Minutes). When you’re done here, go back and check it out!
My goal is for each Sunday Spotlight selection to be:
- Digestible for someone with limited financial background/education
- Actionable for an individual at any stage in their financial journey
I suppose I’m breaking my own rules here (in week #2!) because this week’s curated article is targeted specifically toward individuals and households working on getting out of debt. That being said, roughly 80% of Americans have debt of some kind, so this is definitely a post many of us can take something from!
Getting Out of Debt: The Biggest Challenge is Managing Your Behavior
This week’s Sunday Spotlight is “Getting Out of Debt: The Biggest Challenge is Managing Your Behavior” by Bernz JP of Moneylogue.
Why I liked this article
Getting out of debt is typically one of the first financial goals set by someone just starting their financial journey.
This could be credit card debt, student loans, a mortgage, medical bills… And for most people, it’s a combination of the above!
Paying off these debts is easier said than done.
In the article, Bernz talks about how getting out of debt requires tackling the main causes:
Unavoidable events, poor planning, and decisions such as pursuing further studies can leave one dealing with huge debts that usually take years to pay off. Getting out of debt is about understanding the main caused of debts.
Some of these major causes leading to debt include:
- Failing to think about your future
- Bargain hunting for fun (find some free or cheaper things to do instead)
- Making only the minimum payments on your credit cards
- Ignoring your credit report and credit score (checking your free credit report is easy!)
- Failing to create and stick to a budget
(In my own experience, the last point – failing to create, much less keep a budget – was a major problem I had overlooked back in college!)
No matter how you found yourself in debt, paying it off requires patience and discipline. Very few people have the assets to just pay off their debt overnight.
Instead, it will require making some adjustments to your behavior. If any of the bullet points above sound like you, perhaps it’s time to make some changes!
Be sure to check out the full post on Moneylogue – there are some great action steps for the major causes listed above and more.
If you’re ready to improve your financial behavior…
You should consider signing up for the PFFB newsletter! You’ll receive access to two free resources that will help you transform your personal finances in just a few minutes per day:
- “Breakthroughs for Beginners” email course with worksheets
- “17 Ideas to Help Your Finances in 15 Minutes or Less” eBook
I’d love to see you on the list! 🙂
What’s the most impactful behavioral change you made to get yourself out of debt?