5 Common Mistakes That Contribute to Debt Fatigue and How to Avoid Them
Hello there! 👋
If you’re reading this, then you likely understand the importance of avoiding debt. But despite your best intentions, you may find yourself falling into debt and experiencing what’s called “debt fatigue”—a feeling of exhaustion, stress, and hopelessness that comes from being in debt for a prolonged period.
To help you avoid this frustrating and debilitating state, we’ve put together a list of five common mistakes that contribute to debt fatigue, and some tips on how to avoid them.
Mistake #1: Not Having a Budget
One of the biggest mistakes you can make when it comes to avoiding debt fatigue is not having a budget. Without a financial plan, you have no real understanding of where your money is going and what you can afford. This can lead to overspending, falling behind on bills, and eventually ending up in debt.
To avoid this mistake, create a budget that includes all of your income, expenses, and debt payments. Be sure to leave some room for unexpected expenses or emergencies, and stick to your budget as best you can.
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Mistake #2: Using Credit Cards for Everything
Credit cards can be a useful financial tool when used responsibly, but they can also be a major contributor to debt fatigue—especially if you use them for everything. The convenience of using a credit card can make it easy to overspend and accumulate debt.
To avoid this mistake, limit your credit card usage to purchases you know you can pay off within a reasonable amount of time. If you find yourself unable to pay off your credit card balance, consider cutting up your cards and using cash instead.
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Mistake #3: Ignoring Debt
Another common mistake that can contribute to debt fatigue is ignoring your debt. It’s easy to feel overwhelmed and powerless when faced with a mountain of debt, but ignoring it won’t make it go away. In fact, it will likely make the problem worse.
To avoid this mistake, face your debt head-on and try to come up with a plan to pay it off. You can start by making a list of all your debts, their interest rates, and minimum payments. From there, you can create a debt repayment plan and start making progress towards becoming debt-free.
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Mistake #4: Lifestyle Inflation
As your income increases, it’s tempting to upgrade your lifestyle and start spending more money on things like a nicer car, a bigger house, or fancier vacations. But this lifestyle inflation can be a major contributor to debt fatigue.
To avoid this mistake, resist the urge to upgrade your lifestyle every time your income increases. Instead, consider putting that extra money towards your savings or debt repayment. You can still enjoy some of the finer things in life, but do so in moderation and stick to your budget.
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Mistake #5: Not Seeking Help
Finally, one of the biggest mistakes you can make when it comes to debt fatigue is not seeking help when you need it. Debt can be a difficult and overwhelming problem to face on your own, and there’s no shame in asking for help.
To avoid this mistake, consider reaching out to a financial advisor, debt counselor, or support group for help. They can provide you with the guidance, resources, and emotional support you need to overcome debt fatigue and get back on track.
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And there you have it! Five common mistakes that contribute to debt fatigue and some tips on how to avoid them. Remember, avoiding debt is a marathon, not a sprint, so be patient, stay disciplined, and don’t hesitate to seek help when you need it.
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