The thrill of a new purchase might offer a momentary high, but that quick fix often leaves us with unresolved emotions and mounting debt.

Many of us make everyday choices without realising that delay or derail our debt repayment progress. These small, seemingly innocent habits can build up over time, creating financial strain and making it harder to reach your goals.

The good news is that once you identify these patterns, you can take steps to change them. In today’s article, we’ll explore some everyday habits that sabotage debt repayment plus offer practical ways to fix them.

1) Impulse spending

Impulse buys such as an extra coffee, a cute gadget, or shoes can seem harmless. But over time, these small expenses add up, eating away at the money you could’ve used to pay off debt faster.

How to fix it:

Try the 72-hour rule. If you want to buy something impulsively, wait three days. This pause helps you determine if the purchase is indeed worth it. Additionally, setting aside a small monthly budget for non-essential spending allows you to indulge occasionally without guilt or debt.

2) Doom-scrolling on Instagram and binge-watching brand videos

Endlessly scrolling through Instagram or YouTube can expose you to ads and content designed to trigger your spending urges. Influencers showcasing the latest fashion, tech, or luxury items make buying things you didn’t even know you wanted tempting.

How to fix It:

Limit your exposure by setting screen time limits for social media apps or taking a break from following brands or influencers who promote heavy consumerism.

3) Only making minimum repayments on debt

Paying only the minimum on your credit cards or loans may seem a great way to manage cash flow. However, it significantly extends the repayment period and increases the total interest paid. This habit keeps you stuck in debt longer than necessary.

How to fix It:

Adopt the debt snowball or avalanche method to accelerate your repayments. If you’re tight on money, find small areas to cut back. For example, skip a few of the takeaways and apply the savings toward your debt.

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4) Ordering takeaway too often instead of cooking at home

After a busy day, ordering food rather than cooking is tempting. While the occasional takeout is OK, frequent orders can drain your budget quickly and leave little room to make meaningful debt repayments.

How to fix It:

Meal prep on weekends to reduce the temptation of takeout during the week. Even prepping a few ingredients, like chopping vegetables or cooking grains, can make it easier to whip up a quick meal when you’re tired.

5) Relying on buy now, pay later (BNPL) services

BNPL services like Afterpay or Klarna make it easy to buy things without feeling the financial impact right away. However, splitting payments can encourage overspending and add new financial obligations, making it harder to stay on track with your debt repayment.

How to fix It:

Avoid using BNPL services unless absolutely necessary. If you do, treat these payments as part of your debt and prioritise paying them off quickly, ideally before the instalment deadlines.

6) Using emotional spending to cope

Retail therapy, buying things to relieve stress or lift your mood, can offer a quick dopamine hit. However, these unplanned purchases can lead to unexpected expenses that push you further into debt.

How to fix It:

When you notice the urge to spend emotionally, pause and explore other ways to process your feelings. Journaling, meditating, or talking to a friend are healthier alternatives.

Debt repayment can feel overwhelming, but tackling it one habit at a time is key. By recognising the small behaviours undermining your progress, you can make intentional changes aligning with your debt-free goal.

Photo credits: Pexels

The post How small habits secretly sabotage your debt repayment goals (and how to fix them) appeared first on Mouthy Money.

Debt is a prevalent issue today, with the average non-mortgage debt in the UK standing at a staggering s £16,200.

It’s a problem that affects millions, and breaking free from its grip is crucial for a brighter financial future. This article explores seven practical tips to help you pay off debt fast.

1) The power of a budget

Budgeting is not just a nice-to-have; it’s your guiding light towards debt freedom. Create a detailed plan for how you’ll allocate your income. Categorise expenses like food, housing, and transportation, and stick to your budget diligently. This approach ensures you’re making the most of your resources, and you can identify gaps in your income to put towards debt repayment.

2) Reduce non-essential spending

Distinguish between essential and non-essential expenses. Be ruthless in categorising non-essential spending and cut down on them. It’s easy to justify the costs, but this mindset only prolongs the path to debt freedom. By auditing your expenditure and focusing on essentials, you can create additional buffers for debt repayment.

3) Generate extra income

Making extra money is a crucial step towards achieving debt freedom. It’s an opportunity to accelerate your journey by increasing your income streams.

Consider exploring side hustles or freelance opportunities that align with your skills and interests. You can also think outside the box and explore unconventional income sources.

For example, renting out a spare room on platforms like Airbnb, monetising a hobby, or participating in market research studies, all of these sources can all contribute to your extra income goal.

By setting specific income targets, you transform the process into a challenge. This approach adds an element of excitement and motivation to the task. Whether it’s making an extra £200 or £300 per month, having a clear goal encourages you to seek out opportunities to boost your earnings actively.

4) Embrace accountability

Embracing accountability on your debt-free journey will help accelerate your debt repayment progress. Sharing your plan with a trusted friend or partner who genuinely cares about your success can make a significant difference.

This person should be willing to ask the tough questions and offer valuable insights. They become a source of support, helping you stay disciplined and motivated, especially in challenging moments.

Having an accountability partner will transform your financial pursuit from a solo effort to a shared mission. They celebrate your wins, provide encouragement, and offer guidance during setbacks.

This mutual commitment creates a strong sense of responsibility, significantly increasing your chances of achieving your debt-free goal.

5) Leverage overpayments

Instead of sticking to minimum payments, consider making overpayments on your debts. This tactic significantly reduces the overall interest and gets you closer to debt freedom faster. Even small overpayments can make a substantial difference in the long run.

6) Turn your clutter into cash

Turning clutter into cash is a smart move on your path to financial freedom. Take a moment to assess your surroundings – chances are, there are items you no longer need or use. By selling these possessions, you declutter your living space and generate extra funds for debt repayment.

Platforms like Shpock, Facebook Marketplace, and Vinted provide convenient avenues for selling pre-owned items. It’s a win-win situation – you clear out your space while putting money in your pocket.

Remember, what may seem like clutter to you could be a valuable find for someone else. This process not only aids in your debt-reducing efforts but also promotes a more minimalist and organised living environment.

7) Consider a change of scenery for financial relief

This last tip may sound extreme, but it would be very financially savvy if you could pull it off. While it may be a tough decision, considering a change of scenery can be crucial to becoming debt free.

Sometimes, relocating to a more affordable area can significantly alleviate your financial burden. It’s important not to let sentimentality or emotional attachments to your current location hold you back from making this necessary change.

Moving to an area with lower living costs could save you substantial money on housing, transportation, and daily expenses. This shift can free up funds that would have otherwise been tied to high living costs, allowing you to redirect them towards debt repayment.

Additionally, it opens up the possibility of exploring new opportunities and experiences in a different environment. While it may be a challenging adjustment, the financial relief and potential for a brighter future make it a strategic move towards long-term financial well-being.

Photo Credits: Pexels

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In a world saturated with information, it’s important to have discernment, particularly regarding financial matters.

For families facing financial hardship, the allure of ‘debt help’ ads can be tempting, promising respite from financial woes. However, more often than not, these ads lead to even more significant financial distress.

In this blog, we’ll unravel the tactics employed by these ads and offer practical tips to help families avoid their snares.

Emotional manipulation

One of the most prevalent tactics employed by these ads is emotional manipulation. They prey on feelings of fear and desperation, painting a grim picture of your financial situation.

By tugging at your heartstrings, they create a sense of urgency, making you feel like their solution is your only lifeline. This emotional ploy can cloud your judgement and make it harder to assess the actual value of their offerings.

Recognising this manipulation and approaching these ads with a clear, rational mindset is essential.

False promises

False promises are a cornerstone of these ads, offering a quick and seemingly effortless fix to your financial woes. They use captivating phrases like “erase debt” or “guaranteed relief,” which sound appealing.

However, it’s crucial to recognise that these claims are typically far from reality. Effectively managing debt is a deliberate, step-by-step process that demands careful planning and sustained effort.

Falling for the allure of a rapid resolution can lead to further financial setbacks. It’s essential to approach these ads with a realistic perspective and seek solutions grounded in sound financial principles.

Creating a false deadline

Urgency and pressure tactics are prevalent in manipulative ads. They use fear-inducing strategies to push you into immediate action, often emphasising that the opportunity is time-bound.

This sense of urgency can cloud your judgement and lead to hasty decisions without giving you the necessary time to weigh the potential consequences thoroughly.

It’s crucial to remain calm and collected when faced with these tactics and to take the time needed to make informed choices about your financial well-being.

Concealing the true costs

These ads often withhold crucial information about their services, making it difficult to grasp the full scope of their offering. Hidden fees, undisclosed interest rates, and long-term implications are often obscured.

This lack of transparency can have severe repercussions for your financial stability. It’s imperative to demand clarity and full disclosure before committing to any financial service or program.

This way, you can make informed decisions that align with your long-term financial well-being.

Here are a few practical steps to take in order to navigate the financial landscape effectively.

1. Conduct thorough research

Conduct diligent research before committing to any debt relief program or financial service. Seek out reviews, testimonials, and ratings from other consumers. Understand that established and reputable organisations will have a track record of success and transparency.

2. Adopt cautious approach to quick fixes

It’s important to be sceptical of offers promising immediate, miraculous results, as managing debt is a gradual process, requiring time, discipline, and dedication. Approach solutions that seem too good to be true with caution, as they often are.

3. Scrutinise the fine print

Always review the terms and conditions of any financial agreement meticulously. It’s vital you understand the fees, interest rates, and potential impact on your credit score, as a clear understanding will empower you to make informed decisions.

4. Trust your instincts

If an ad or offer triggers a sense of unease or doubt, don’t dismiss it. Trust your instincts and seek a second, third or even fourth opinion. Believe it or not, your intuition is a valuable tool in safeguarding your financial well-being.

Photo Credits: Pexels

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Did you know that the average household in the UK has £7,337 in unsecured personal debt, £2,229 of which is credit card debt? £7,337 is a considerable amount, especially in today’s climate of the cost-of-living crisis, where it’s almost inevitable that these numbers will be even higher in 2023.

The new year often comes the desire to make changes and take steps towards life improvements. If paying off debt is an area of your life you want to tackle in 2023 but need help figuring out how to get started, keep on reading.

Today’s article will share information about five of the UK’s leading debt charities. All these will give you free debt advice and help you with the proper steps to get started on your debt-free journey.

StepChange Debt Charity

StepChange is the UK’s leading debt charity. Every year the charity helps 600,000+ people deal with debt problems by providing free debt advice and practical support.

Moreover, the advice given isn’t generic; it’s tailored to the individual’s financial situation following a thorough investigation into their circumstances.

Even if you want to avoid going down the 1-2-1 support route, the website has a wealth of resources available to help you tackle debt and improve your financial literacy.

For more information, visit the Stepchange.org website.

Citizens Advice

You’re probably familiar with Citizens Advice for accessing confidential information and advice about legal, consumer and housing problems in the UK. But did you know that they were an excellent place to turn to discuss debt issues?

The Debt & Money section on the Citizens Advice website shares much information on tackling debt.

Citizens Advice also provides you with all the practical information you need to make sound financial choices, covering everything from dealing with your debt problems to avoiding losing your home and getting your finances back into shape.

National Debtline

National Debtline is a debt advice charity run by the Money Advice Trust. National Debtline is a free and confidential debt advice service for residents in England, Wales and Scotland. People can access this free debt advice over the phone and online.

They recently introduced a cost-of-living hub to help you determine if you can pay less for your living costs and learn about any extra help that might be available.

For further information, visit the nationaldebtline.org website.

Debt Advice Foundation

Debt Advice Foundation is a registered national debt advice and education charity that offers free, confidential support and advice to people in debt and worried about loans.

The advice given is impartial and tailored to you and gives you the best plan to help you transform your financial situation. So if you need help creating an effective debt management plan, Debt Advice Foundation is an excellent organisation to turn to.

To find out more, visit the debtadvicefoundation.org website.

Christians Against Poverty

Christians Against Poverty is a Christian charity founded in West Yorkshire by John Kirkby in 1996.

The charity provides resources to help people get out of debt, find a job or gain vital life skills. Christians Against Poverty offers free professional services across the UK through local churches.

Although this charity is much smaller than the others mentioned in this post, they have significantly impacted communities across the UK, having helped over 20,000 people get out of debt since 2010.

Photo by Amy Hirschi on Unsplash

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