The psychology of debt
When you read headlines such as ‘Britain is on a downward spiral of debt, do you feel pangs of guilt as you associate yourself with that statement or do you judge those who spend so irresponsibly?
The headline highlights thousands of people who have given up trying to save and are falling even further into debt as they use their house as a cash cow by constantly drawing from it to increase their mortgage and furnish their lifestyle. The Samaritans say that calls related to debt have even overtaken matters regarding stress within the workplace.
The debt cycle: So why do can some people save and others spend frivolously?
Money habits usually stem from childhood. If you were brought up in a household where it was important to count every penny, then it is likely you are still careful with money and will probably still stay this way even if you became a national lottery jackpot winner. On the other hand, if you came from a poor family background but were often showered with gifts to make you feel special, it is likely that you will continue spending money to use as an emotional crutch.
Finances and you: Are you an introvert or extrovert spender?
An introvert spender is someone who is very prudent with money and will deny themselves or others very little pleasure from the money that they have. On the contrary, an extrovert spender will shower friends and family with lavish gifts even if it means going into debt.
This shows that for everyone, debt is always at the back of the mind and it is important not to judge others for their financial position as they may not always be the ones to blame. Whether you are an introvert spender or an extrovert spender, you can change the way you spend money. Start the new year off by resolving to end your debt. The Debt Advice Trust can give you information and advice on all debt solutions, from solutions for small debts such as debt consolidation to solutions to large debts such as bankruptcy.
