Debt can be a heavy burden, not just on your finances but on your mental and emotional well-being as well.

It’s easy to get trapped in negative self-talk and feel like your financial situation defines who you are. If you’ve ever been in debt, you may have noticed how it starts to chip away at your confidence, self-worth, and overall view of yourself.

It’s important to recognise how debt affects your self-esteem, but equally crucial to remember that your value isn’t tied to your bank balance or your financial mistakes.

Let’s break down the impact debt can have on your self-esteem and, more importantly, how you can rebuild it. 

1. Loss of confidence in your abilities 

One of the first ways debt can hurt your self-esteem is by diminishing your confidence in your abilities. When you’re struggling with debt, it’s easy to feel like you’re failing in an area of your life.

Financial difficulties can make you doubt your competence and question whether you’re capable of managing other aspects of your life. These thoughts can quickly spiral into a belief that you’re just not good enough, creating a barrier to success in both personal and professional areas. 

2. Lack of trust in yourself 

Debt can lead to feelings of regret and self-blame, especially if the debt is the result of poor financial decisions. This lack of trust in yourself can erode your sense of self-worth.

When you look back on past decisions, you may be hard on yourself for mistakes like overspending, poor budgeting, or taking on more debt than you could handle. This constant self-criticism only deepens the belief that you can’t be trusted to make good choices, perpetuating a negative cycle of self-doubt. 

3. Constantly beating yourself up for past mistakes 

When you’re in debt, it’s common to focus on the mistakes you’ve made that led to the situation. Whether it’s high-interest credit cards, loans that were taken on without thinking about the long-term impact, or overspending on non-essential items, these past financial missteps can haunt you.

The guilt and shame can cause you to obsess over your mistakes, making it even harder to move forward. But it’s crucial to recognise that these past decisions don’t define you. Mistakes are a part of life, and they offer opportunities to learn and grow. 

4. Anxiety about how to repay the debt 

One of the biggest emotional tolls debt can take is anxiety. The worry about how to pay off your debt and the consequences of not repaying it can keep you up at night. You might worry about things like late fees, missed payments, or what will happen if you can’t pay your debt off in time.

This anxiety can become overwhelming, especially if you’re juggling multiple debts at once. It’s easy to get trapped in a cycle of stress, but it’s important to understand that worrying about the future doesn’t help the present. 

5. Seeing yourself as less than others 

Debt can also make you feel inferior to others. You might feel like you’re the only one making financial mistakes, and as a result, you start comparing yourself to others who seem to have their finances in order.

This can lead to feelings of isolation, as though you’re alone in your struggles, and cause you to undervalue yourself. But remember, everyone has their own financial journey, and many people have made mistakes and faced setbacks along the way. Debt doesn’t make you less than anyone else. 

6. Withdrawing from loved ones 

As debt takes a toll on your mental health, you might find yourself withdrawing from friends and family. You may fear being judged or perceived as “broke,” which can be embarrassing or shameful.

You might worry that people will view you negatively or think less of you. However, keeping your struggles to yourself only isolates you further and makes it harder to seek support. Opening up to someone you trust can be incredibly freeing and can help you feel less alone in your journey. 

You are not your debt 

It’s important to remember that you are not defined by your debt. Debt is a temporary financial challenge, not an irreversible part of your identity. You made some financial mistakes, but that doesn’t mean you are a mistake.

Every setback is an opportunity for growth. While it might feel overwhelming right now, this situation is temporary and does not define your future. 

Your wealth does not equate to your value, and neither does your debt. You are enough as you are, with or without money. You are worthy of respect, love, and success, no matter where you stand financially. 

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Supporting a loved one who is struggling with debt can be a delicate and challenging situation.

While you want to help, it’s important to approach it with care, understanding, and practicality. Financial difficulties can cause feelings of shame and stress, and the last thing your loved one needs is judgment or pressure.

Instead, the key to being truly helpful lies in offering emotional support, sharing resources, and encouraging positive steps toward debt freedom.

Here’s how you can effectively support a loved one in debt, while respecting their journey and empowering them to take control of their situation. 

What not to do 

Before we dive into the positive ways you can help, it’s important to understand what actions to avoid. These missteps, though well-intentioned, could make things worse for your loved one in the long run. 

1. Don’t keep bailing them out financially 

It’s tempting to give money to your loved one in an effort to relieve their debt stress, but this doesn’t solve the root of the problem.

Continuously bailing someone out financially can create a pattern of dependency, leaving your loved one without the necessary skills or motivation to tackle their debt on their own.

Instead of offering financial support, consider other ways to help them get back on track. 
 

2. Don’t judge them 

When someone confides in you about their debt, it’s essential to create a safe, non-judgmental space for them to open up. It’s easy to criticise or express frustration, but that will only add to their guilt and shame.

Instead, listen with empathy and understanding. Your role here is to be a sounding board and provide reassurance, not to add to the pressure they’re already feeling. 

How to help 

Now that we’ve covered what not to do, let’s explore the positive ways you can support your loved one through their financial struggles. 

1. Listen and offer emotional support 

Debt can be overwhelming and isolating, and your loved one may feel embarrassed or ashamed about their situation. Simply listening to them without judgment can make a huge difference.

Let them know you care and that they don’t have to face this challenge alone. Offering words of encouragement and empathy can go a long way in helping them feel seen and understood. 

2. Share useful resources 

Encourage your loved one to seek out financial resources that provide expert advice and support. Organisations such as StepChange, Citizens Advice, and The Money Charity offer valuable tools and guidance to help individuals tackle their debt.

These resources can offer a clear, actionable plan for repaying debt, including budgeting tips, consolidation options, and legal advice. 

3. Share inspiring stories 

Sharing stories of others who have successfully paid off large amounts of debt can provide hope and inspiration. Many people have been in the same position and have managed to turn their financial lives around.

Hearing about their journey can give your loved one the belief that debt freedom is possible and that they can achieve it too. 

4. Help them create a budget 

One way to help is by sitting down with your loved one and creating a budget. Writing down income and expenses can highlight potential areas for improvement, such as unnecessary spending.

This exercise may reveal that their financial issue is more about managing money than about having too little income. With a clear budget in place, they’ll be better equipped to take actionable steps toward paying off their debt. 

5. Encourage small, achievable goals 

Breaking down a large debt into smaller, manageable goals can help reduce the feeling of being overwhelmed. Help your loved one set realistic goals such as paying off a specific amount of debt each month and encourage them to focus on progress rather than perfection. 

6. Be part of the solution, not the problem 

If your loved one is trying to cut back on spending, avoid pressuring them to participate in costly activities. Instead of suggesting expensive outings, propose alternative ways to spend quality time together without breaking the bank.

Whether it’s a fakeaway dinner at home, a walk in the park, or a movie night in, your loved one will appreciate the effort to be mindful of their financial situation while still maintaining a strong bond. 

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Debt freedom is a goal that resonates with many of us. The idea of living unburdened by monthly payments and accruing interest is very appealing.

However, life is fleeting, and the harsh reality is that none of us know when our time will be up. This raises an important question: should we delay all gratification to eliminate debt as quickly as possible, or should we balance paying off debt with enjoying life in the present? 

The answer lies in finding a balance that aligns with your values, circumstances, and long-term goals. Here are some ways to strike that balance: 

Understand the trade-offs 

When you say yes to one thing, you’re often saying no to another. For instance, an expensive vacation might bring you joy and memories now, but it could delay your progress toward debt freedom.

Conversely, funneling all your discretionary income into debt payments might expedite your journey to debt-free living but leave you feeling deprived and burned out. Understanding these trade-offs is crucial. 

The key is intentionality. Reflect on what truly brings value to your life. Are you prioritising experiences or items that align with your core values? Mindless spending on random pleasures can diminish your ability to manage debt effectively, so it’s important to spend thoughtfully while maintaining a focus on your financial goals. 

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Define your values 

Your spending habits and debt repayment plan should reflect your values. What’s most important to you? If you value quality time with family, perhaps it’s worth allocating funds for a weekend getaway while still making steady progress on your debts.

If achieving debt freedom is your top priority, you might find satisfaction in channeling most of your resources into eliminating high-interest loans. 

By identifying what you value most, you can allocate your money more effectively. Instead of succumbing to mindless consumerism, spend on things that genuinely enrich your life while directing the remaining funds to reduce your debt. This requires a conscious effort to differentiate between needs, wants, and what truly adds joy and meaning to your life. 

Consider your family dynamics 

Family dynamics play a significant role in finding the right balance. Are you single, married, or supporting children? Each situation brings unique considerations. If you’re single, you might have more flexibility to focus aggressively on debt repayment, as you’re primarily accountable for yourself.

However, don’t overlook the importance of investing in your own happiness and well-being. For married couples, aligning with your partner’s financial goals and values is essential. Open communication about your shared priorities can help you strike a balance between enjoying life together and paying down debt.

For those with children, raising kids often involves additional expenses and a desire to create lasting memories. In this case, finding a middle ground between financial responsibility and meaningful family experiences becomes even more critical. 

Invest in self-improvement or income growth 

Another way to strike the balance is by investing in opportunities that enhance your earning potential or personal development.

Whether it’s a certification course, a side hustle, or skill-building workshops, spending money on self-improvement can yield long-term financial benefits that help you pay off debt faster.

Striking this balance ensures that you’re not only addressing your current financial situation but also laying the groundwork for a better financial future. 

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Dealing with debt can be a stressful experience, but it’s even more frustrating when you’re contacted about a debt that isn’t yours.

Whether it’s the result of a mix-up, identity theft, or someone else’s financial mistakes, knowing your rights and understanding the correct steps to take can help resolve the situation.

In this blog post, we’ll explain what to do if you’re faced with a debt that isn’t yours. 

Understand your rights 

The first thing you need to know is that you do not have to pay a debt that isn’t yours. Under UK law, you are only responsible for debts that you actually owe. If a creditor or debt collector contacts you, they must provide proof that the debt belongs to you. If they fail to do so, they cannot continue to pursue you for payment. If such a situation arises, it’s essential to stay calm and not panic. You have the right to dispute any debt you believe is not yours. 

Confirm the debt isn’t yours 

Before you take any action, it’s crucial to confirm that the debt being claimed isn’t yours. Review the documents or communications you’ve received from the creditor or debt collector. Check all the details, such as the name, address, and any other identifying information. If any of the information doesn’t match your records, the debt might not be yours. If the details seem incorrect or unfamiliar, it’s important to get in touch with the creditor or debt collector right away to let them know about the mistake. 

Contact the creditor or debt collector 

When you contact the creditor or debt collector, clearly explain that the debt does not belong to you and request that they stop contacting you. In your communication, ask them to remove your details from their records.

Be polite but firm in your response. It’s also important to keep a written record of all communication, whether it’s by email, letter, or phone call, as this documentation could be crucial if you need to escalate the issue at a later date. 

Send a formal dispute letter 

If the creditor or debt collector continues to insist that you owe the debt despite your explanation, you should take a more formal approach. Send them a written dispute letter clearly stating that you do not owe the debt.

In your letter, ask them to provide evidence proving their claim. Make sure to keep a copy of the letter for your records and consider sending it via recorded delivery so you have proof that it was received. 

Address identity theft if applicable 

In cases where the debt is a result of identity theft, you will need to take additional steps to protect yourself. Identity theft is a serious crime, and it’s important to report it to the police as soon as possible.

You should also contact the companies involved in the debt to inform them of the situation and work with them to clear your name. It’s also wise to check your credit report regularly to monitor for any further fraudulent activity. 

Being contacted about a debt that isn’t yours can be a frustrating and stressful experience. However, by following the steps outlined in this blog, you can take control of the situation and ensure that you’re not unfairly held responsible for someone else’s debt.

Remember, you have legal rights to challenge any debt you don’t owe, and you don’t have to face this situation alone. Seek out advice from trusted resources like Citizens Advice or professional debt support services, and take action to protect yourself financially. 

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When I began my debt-free journey, I was overwhelmed. I had accumulated over £36,000 in debt and felt completely lost.

It wasn’t until I read The Total Money Makeover by Dave Ramsey that I started to see a way out. This book didn’t just give me practical advice, it changed my entire mindset about money.

Through a combination of determination and Ramsey’s guidance, I finally paid off my debt.

If you’re in a similar situation, these five books could be the game-changers you need. 

1. The Total Money Makeover by Dave Ramsey 

This book is my personal favourite because it played a crucial role in helping me pay off my debt. Ramsey’s no-nonsense approach to personal finance revolves around his seven “baby steps,” which provide a clear and actionable roadmap to financial security.  

These steps begin with saving £1,000 as a starter emergency fund, then focus on paying off all debts using the “debt snowball” method (paying off the smallest debts first to build momentum and motivation).

The plan progresses to building a fully funded emergency fund, investing for retirement, and achieving long-term financial goals like paying off a mortgage and giving generously. Ramsey’s step-by-step framework simplifies the overwhelming process of tackling debt and creating financial stability. 

One of the most impactful lessons I learned was the importance of budgeting. Before reading this book, I believed I had an income problem, but I soon realised I had a spending problem. Creating a written budget and sticking to it transformed my finances and my life.  

2. Your Money or Your Life by Vicki Robin 

If you’re looking for a book that delves into the emotional and psychological aspects of debt repayment, this one is a must-read. Robin’s work goes beyond just numbers and budgets; it challenges readers to redefine their relationship with money by recognising it as a representation of life energy.

The book provides a framework for evaluating expenses based on how much time and effort they cost you, empowering readers to make more intentional financial choices. By aligning spending with personal values, Robin helps readers find greater fulfilment while working toward financial independence. 

One key takeaway for me was the “Life Energy” concept, where you calculate the time spent earning money versus the fulfilment it brings. This mindset shift made me reconsider impulsive spending and focus on things that bring me value while clearing debt. 

3. How to Be Debt Free by Avery Breyer 

Avery Breyer’s book is a step-by-step guide tailored for people looking to eliminate different types of debt, from credit cards to mortgages. What I loved about this book is its simplicity and practicality. Breyer provides clear instructions for creating a repayment plan and avoiding common pitfalls that can lead to more debt. 

A key lesson I applied was the advice on identifying and tackling high-interest debt first. By focusing on the debts costing me the most in interest, I saw quicker progress and saved money in the long run. Breyer’s actionable steps helped me stay organised and focused on the bigger picture. 

4. The Meaningful Money Handbook by Pete Matthew 

Pete Matthew offers an accessible and UK-focused guide to managing money, which includes practical strategies for tackling debt.

The book’s clear, jargon-free language makes it easy to understand and implement the steps outlined for creating a budget, prioritising repayments, and building financial resilience. 

One lesson that resonated with me was the importance of “paying yourself first” while working toward debt freedom.

Matthew encourages setting aside even a small amount to build a safety net, which I found essential for avoiding future debt when unexpected expenses arose. This approach gave me peace of mind and helped me stay on track. 

5. The Simple Path to Wealth by JL Collins 

While not exclusively focused on debt repayment, JL Collins’ book provides a straightforward and practical approach to achieving financial independence, starting with clearing debt.

Collins emphasises the importance of managing debt as the first step to wealth building and explains how to avoid financial traps that lead to more borrowing. 

One takeaway I applied was the concept of avoiding lifestyle inflation. As I began to pay off debts, I resisted the urge to increase my spending, redirecting those funds toward savings and debt overpayments instead.

This discipline not only helped me quickly achieve debt-freedom, but also set the stage for long-term financial stability. 

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When your finances are overwhelmed, looking for quick debt fixes to ease the pressure is natural. But some of these solutions while tempting can backfire, leaving you with even more financial problems.

In today’s blog post, we’ll explore common ‘quick debt fixes’ that may seem helpful in the short term but can do more harm than good. 

1) Payday loans 

Payday loans promise fast cash, but they come with extremely high interest rates and short repayment periods, often trapping borrowers in a cycle of continuous debt. 

2) Balance transfers 

While transferring debt to a 0% interest card sounds appealing, balance transfers often come with fees and only delay the problem. If the promotional period ends before you pay off the balance, you’re back to high interest rates that are sometimes worse than before. 

3) Taking out new credit cards 

Opening new credit cards to manage existing debt creates more liabilities and often leads to more spending. It can also lower your credit score if you miss payments or accumulate more debt. 

4) Taking money from children’s piggy banks or savings accounts 

It may feel like an easy, harmless way to get money, but taking money from your children’s savings sets them back financially and can leave you with feelings of guilt, shame and regret. 

5) Borrowing money from family and friends 

Turning to loved ones for help might seem like the safest option, but money issues can strain relationships. If you’re unable to repay the loan on time, it can create tension and damage trust. 

6) Loan sharks and unlicensed lenders 

Desperation can push people toward illegal lenders who charge extreme interest rates and resort to intimidation or threats to collect payments.  

7) Overdrafting your bank account 

While using your overdraft can offer short-term relief, fees and interest charges add up quickly. This approach only deepens your financial trouble over time. 

8) Pawning valuable items 

Selling or pawning belongings may provide a quick cash injection, but you often get only a fraction of the value and risk losing items that are important to you. 

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What to do instead 

If you’re struggling with debt, there are healthier, more sustainable options that can help you regain control without putting your financial future at risk.  

1) Contact debt charities or nonprofit credit counseling services 

Organisations like StepChange, Citizens Advice, or the National Debtline offer free, professional advice and support for creating a plan to tackle your debt. 

2) Speak to your creditors early 

Many creditors are willing to negotiate lower payments or temporary interest freezes if you explain your financial difficulties early on. 

3) Arrange a payment plan 

Setting up a debt management plan through a credit counseling agency can consolidate your payments into one manageable monthly amount. 

4) Explore debt consolidation 

If you have multiple debts, consider consolidation loans from reputable lenders to simplify your payments and reduce interest rates. 

5) Access government assistance programs 

Depending on your location, emergency grants, hardship programs, or benefits may be available to help ease the burden. 

6) Sell unused items or take up freelance work 

Instead of pawning valuables, try selling unused items online or taking up freelance or part-time work to generate extra income. 

7) Seek emotional and financial support 

Dealing with debt can be emotionally draining, so it is essential to speak to family, friends, or mental health professionals to get the support you need as you work through your challenges. 

When you’re desperate to manage debt, it’s important to resist the urge to take shortcuts that could worsen your financial situation. While the quick fixes listed above may offer temporary relief, they often come with long-term consequences. 

Instead, focus on sustainable solutions like seeking professional help, negotiating with creditors, and creating a repayment plan that works for your situation. 

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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.

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In the UK, navigating the complexities of debt and death can feel overwhelming, especially during a time of loss.

When someone passes away, their debts do not simply vanish; they become a responsibility for the estate.

Understanding how to deal with these debts is crucial, not only for financial stability but also for emotional well-being. 

What happens to debts when someone dies? 

Debt and death is such a difficult topic to grapple with, but it is important to understand the implications of it.

When a person dies, their debts become liabilities that the executor or administrator of the estate must manage. The critical point here is that debts need to be paid from the deceased’s estate, which comprises their assets and any available funds. 

If the estate doesn’t have sufficient resources to cover all debts, these debts may, in some instances, be written off. Surviving relatives are generally not liable for these debts unless they acted as guarantors or co-signatories on the loans.

This distinction is vital, as it means that loved ones can grieve without the added burden of assuming financial responsibilities that do not belong to them.

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Who pays off the debts? 

The responsibility to settle debts falls squarely on the executor or administrator. However, being named an executor does not mean you will personally bear the financial weight of the estate’s debts.

To shield yourself from potential claims by unidentified creditors, it’s wise to place a deceased estate notice in The Gazette and a local newspaper. This proactive measure helps to notify creditors and protects you if any undisclosed debts arise later. 

Consider consulting a solicitor or probate specialist for complicated estates. They can provide invaluable guidance and ensure you navigate the process without unnecessary stress. 

Sorting out the debts 

The first step in handling a deceased person’s debts is identifying and listing them. Review financial statements, letters, and any paperwork that might shed light on what is owed to whom. I

t’s also essential to understand the types of debts left behind. Individual debts are solely in the deceased’s name and can typically be paid from the estate. Surviving family members are only responsible for settling these if they guaranteed the debt. 

Joint debts, on the other hand, mean that if the debt was co-signed or jointly held, the surviving parties usually inherit the responsibility for repayment. Understanding the loan terms and discussing them with creditors can be beneficial.

Secured debts, such as mortgages, are tied to specific assets, and the nature of ownership can affect how these debts are managed. Unsecured debts are not backed by collateral and can be pursued by creditors, but they will be settled after priority debts. 

How to pay off debts after death 

Once debts have been identified, the next step is to inform creditors of the death. This communication can relieve some immediate pressure, allowing the executor to focus on settling the estate without the burden of relentless payment demands.

If there’s any life insurance or payment protection policies, check these right away, as they may cover some or all debts. If insurance exists, follow the terms to claim the benefits, which can be used to settle outstanding debts. 

When it comes to repayment, debts should be settled in a specific order. Funeral costs come first, followed by secured debts, priority debts like tax obligations, and finally, unsecured debts. This prioritisation is critical; if the estate is insolvent, creditors will be paid in the order set by law. 

What to do If you’re struggling to pay off debts after a death 

Navigating financial responsibilities after a death can be challenging, particularly if your income has been impacted. If you’re struggling with joint debts or your own financial obligations, know that you do not have to face this alone.

Seeking advice from a debt adviser can be a game-changer. These professionals can offer tailored guidance, explore options you might not be aware of, and help you take control of your financial situation without judgment.

Whether it’s online, over the phone, or face-to-face, support is available to help you manage the complexities of debt after a loved one’s passing. 

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Shopping can feel like the perfect solution after a long, stressful day. Whether it’s treating yourself to a new outfit or indulging in takeout, these purchases can seem like a way to lift your spirits.

This behaviour, known as emotional spending, can temporarily relieve life’s challenges. However, if it becomes a regular habit, it can lead to significant financial problems, particularly debt. 

Emotional spending occurs when we make purchases not because we need something but to alter our mood. Instead of buying essentials or sticking to a budget, we shop to escape feelings like stress, sadness, or boredom.

The thrill of a new purchase might offer a momentary high, but this quick fix often leaves us with unresolved emotional issues and a growing financial burden. 

How to identify if you’re an emotional spender 

Recognising emotional spending can be tricky. It often feels like harmless fun, but certain patterns may indicate a deeper problem.

If you find yourself shopping to improve your mood after a tough day, or if your first response to a stressful situation is to make a purchase, you may be engaging in emotional spending.

Another sign is making impulsive purchases. If you frequently buy things on a whim without thinking it through, it’s likely driven by emotions rather than necessity. 

You might also notice feelings of guilt or regret after shopping. This remorse can signal that the purchase wasn’t genuinely needed.

Furthermore, if your spending habits are leading to financial strain—such as accumulating credit card debt or feeling pressured to make ends meet—it’s a clear indication that emotional spending has become a problem. 

Identifying your triggers 

Understanding what triggers your emotional spending is crucial. Emotional spending usually stems from specific feelings or situations, and stress is a major trigger for many people.

Shopping can seem like a comforting escape when life feels overwhelming due to work, relationships, or finances. Unfortunately, this temporary relief doesn’t address the root cause of the stress, and in fact, it often leads to even greater anxiety when bills come due. 

Boredom is another common trigger. If you find yourself shopping simply to fill time, it becomes a form of entertainment rather than a thoughtful purchase.

Similarly, feelings of loneliness can lead to emotional spending. Buying something might offer a brief distraction, but it doesn’t solve the underlying issue of feeling disconnected. 

Even positive emotions can trigger spending. Celebrating a promotion or milestone can lead to overspending as we justify treating ourselves. While there’s nothing wrong with occasional splurges, frequent celebratory spending can easily become problematic if it’s not planned for in your budget. 

How emotional spending can lead to debt 

While occasional impulse buys might not seem harmful, emotional spending can lead to debt when it becomes habitual. The core issue is that these purchases are typically unplanned.

Emotional spenders often don’t account for these expenses, leading to budget overruns. Over time, small, impulsive purchases can accumulate, resulting in financial strain and even debt. 

Credit cards complicate matters further. Many emotional spenders rely on credit to finance their purchases, especially when they lack the cash.

This reliance on credit can lead to high-interest debt, especially if the balance grows and only minimum payments are being made. As the debt increases, so does the financial stress, often triggering more emotional spending in a cycle that can feel impossible to break. 

Living paycheque to paycheque is another consequence of emotional spending. When money is consistently directed toward unnecessary purchases, saving for emergencies or long-term goals becomes difficult.

This leaves emotional spenders vulnerable to financial hardship, making it challenging to cope with unexpected expenses. 

How to combat emotional spending 

Breaking the cycle of emotional spending is possible with awareness and intention. The first step is recognising your patterns and triggers. You can develop healthier coping strategies once you understand what leads to emotional spending.

Creating a budget is a practical way to start. A budget allows you to see where your money goes and helps set limits on discretionary spending. 

Finding alternative ways to cope with emotions is equally important. Instead of shopping when stressed or bored, consider other activities that provide fulfilment—like exercising, reading, or engaging in a hobby.

If you feel the urge to buy something, try waiting 72 hours before making a decision. This cooling-off period can help determine if the purchase is truly necessary or just an impulsive splurge. 

Reducing temptation can also help curb emotional spending. Consider deleting shopping apps or unsubscribing from promotional emails to make sticking to your financial goals easier.

By removing easy access to shopping, you can focus more on your emotional well-being and financial stability. 

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In our hyper-connected world, digital devices have become integral to our daily lives.

We spend hours scrolling through social media, checking emails, and engaging with various online platforms.

While these activities can be enjoyable and informative, they can also contribute to stress, distraction, and financial strain.

If you want to get out of debt faster, a digital detox might be just what you need. 

What Is a digital detox? 

A digital detox is when you intentionally refrain from using electronic devices such as smartphones, computers, and tablets.

During a digital detox, the goal is to reduce stress, improve mental wellbeing, and focus more on real-world interactions and personal goals. Digital detoxes can vary in length, from a short three-day break to a more extended 30-day hiatus or longer. 

The benefits of a digital detox 

Engaging in a digital detox can offer many benefits that extend beyond simply reducing screen time.

These benefits can be particularly impactful when you’re trying to get out of debt. 

More spare time 

One of the most immediate benefits of a digital detox is increased free time. On average, adults in the UK spend over four hours a day on their smartphones, according to a report by Ofcom.

Instead of wasting time doom-scrolling, spend the timer during your digital detox on activities that align with your financial goals. By disconnecting from your devices, you’ll have more time to focus on your personal and financial health. 

Moreover, this extra time can be used to reflect on your financial situation, think about your spending habits, and develop a strategic plan to tackle your debt.

Whether it’s creating a budget, exploring new income streams, or simply organising your finances, the time gained from a digital detox can be invaluable. 

Blocking out the noise 

Social media platforms are filled with influencers, advertisements, and content that can create a sense of urgency to spend more.

The constant bombardment of ads and influencer posts can lead to ‘keeping up with the Joneses’ syndrome, where you feel compelled to buy things you don’t need just to fit in or feel successful. 

By stepping away from your digital devices, you can block out this noise and reduce the pressure to spend.

Without constant comparison to others, you’ll be able to focus on your own financial goals without external influence. This mental clarity can be crucial in helping you stay disciplined and avoid unnecessary expenses that could further delay your debt repayment. 

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Declutter your environment 

A digital detox can also provide the perfect opportunity to declutter your physical space.

Often, we accumulate items that we no longer need or use, simply because we’re constantly exposed to the latest trends and must-have products online. 

Use this time to go through your home and identify items that are just taking up space. Selling these unused items on platforms like eBay, Facebook Marketplace, or Depop can generate extra cash that can be used to pay down your debt.

Moreover, a decluttered environment can lead to a clearer mind, helping you to stay focused and motivated on your journey to becoming debt-free. 

Listen to your inner voice 

In our digital world, it’s easy to be influenced by the opinions and advice of others, especially online.

Whether it’s the latest financial ‘guru’ or an influencer sharing their lifestyle, we’re constantly bombarded with information that can make us question our own decisions. 

A digital detox gives you the chance to tune out these external voices and listen to your inner voice instead. By spending time offline, you can reconnect with your own goals, values, and priorities.

This can help you make more informed and authentic decisions about your finances, free from the sway of external influences.

Deciding what you want to do with your money, rather than being told what to do, is a big step towards financial liberation. 

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