How small habits secretly sabotage your debt repayment goals (and how to fix them)

Tolu Frimpong discusses the small habits that can sabotage your debt repayment goals and how to fix them.

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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