Debt can be a vicious cycle. We start the debt cycle by finding a way to JUSTIFY adding on new debt. (See the previous blog to find out more details about What Causes a Debt Cycle?)
Here are 11 Symptoms You’re Stuck in a Debt Cycle…
- Have little or no savings, investments, or assets.
- Add new debt right after one debt is paid off.
- Have several credit cards.
- Borrow money to pay off credit cards.
- Put very little money down and set up a longer repayment period to reduce the monthly amount.
- Have charge accounts that rise steadily and rarely get paid off.
- Use overdraft privileges on our checking account.
- Are proud that we’ve been approved for credit.
- Are ignorant of the terms and interest rates of our loans and credit card accounts.
- Keep payments around the minimums.
- Use promotions to pay off items such as furniture and dental work over time.
If most of these signs fit you, you are in the vicious debt cycle.
How to End the Debt Cycle
A good way to stop the debt cycle is to take it one day at a time. You might say to yourself, “Just for today, I will pay in cash.” Or, “Just for today, I will not use my credit or charge cards.”
Even if you can slow the debt cycle down, you’re getting somewhere. If you stay committed, it will eventually end the cycle.
You can also contact Vickie Champion for a complimentary coaching and consulting session if you have evidence you are in the debt cycle.