How To Face Up To Debt And Take The First Step

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We explored the reasons that make it hard to take that first step towards financial freedom and we found out that science might just have the answer – inertia.

The Institute of Inertia, a collaboration between university academics in the UK and comparison site comparethemarket.com, set out to conduct research with everyday consumers to explore reasons why it can be difficult for people to take action to save themselves time and money, even when they know they should.

The work uncovered four different categories of inertia that most of us fall into and which have a direct effect on how we tackle our financial lives. Researchers believe understanding which category you belong to and your behaviour is key to developing tools and techniques to break your habit of putting things off. Knowledge is power and being in control and understanding your behaviour is the first step to taking back control of your finances, especially when it comes to debt.

Get to know your debt personality type

If you’re curious and want to delve into your own money personality a little further, below is a brief explainer on the four different types of behaviour related to financial inertia that were uncovered by The Institute of Inertia. If some of the descriptions sound like you, it may help you connect the dots on your own debt behaviour. If you’re still not sure, you can also take a short quiz to find out exactly which category you fall in to!

Head in the clouds

If you fall into this category, chances are your inertia around dealing with debt comes from there just being too many other things to think about in your life, be that your family, your job, or your social life! People with their head in the clouds often miss crucial debt and bill payments, meaning debt builds up unnecessarily.

If you’ve fallen behind on debt repayments and collection calls are stressing you out, there are simple ways to handle overdue accounts with some help from our debt management experts.

Head in the sand

Having your head in the sand means while you know you need to tackle your finances, you tend to avoid it because you think it might be too difficult. For example, you probably understand consolidating your debt is the right thing to do but working out what that first step is has put you off from taking the first step.

The good news is, debt consolidation is straightforward and there are people that can help. Learn more about the steps involved here.

Heart over head

People that let their heart rule their head means they can be overly swayed by the emotional element of money. If your heart rules your head, chances are despite your best intentions, it can be hard to stick to your budget when the weekend rolls around and your social life kicks in. Heart over head people are probably familiar with the feeling of regret which kicks in after a big night out on the town, an impulse shopping spree or an expensive, spur of the moment holiday.

Sometimes setting ourselves unrealistic budgets can have the opposite effect and lead to overspending. If you need help making sure your budget allows for your social life and isn’t overly restrictive, Debt Busters’ team of budgeting experts can help you tailor something that works for you.

Head in the game

This is where we all want to be and can be once we identify what it is about our behaviour that’s been holding us back to date. People with their head in the game have developed habits that help them deal with their debt, become debt free and then stay on top of their money management.

Developing these habits starts with acknowledging and working on our behaviour around debt. When you’re ready to take the first step towards a debt-free future, and get your head in the game, we’re here to help! Get in contact with a member of our friendly team to discuss the best solution to help you move forward.

 

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